The Government of India has imposed new regulations on social influencers, requiring them to disclose any brand associations in a clear and prominent manner. Non-compliance with these rules can result in fine up to Rs 50 Lacs or a ban on endorsing products for a period of up to six years. These regulations have been imposed in order to ensure transparency and protect consumers.
An influencer or celebrity is expected to clearly disclose any ‘material connections’ between themselves and advertiser, the Chief of the Central Consumer Protection Authority (CCPA) Nidhi Khare stated.
The social influencer industry in India is projected to reach a market size of Rs 2,800 Crores by 2025, as companies rely more on influencers to promote their products in a relatable and person way to the audience.
In case of endorsement in a picture, disclosure should be superimposed over the image for viewers to notice. In a video, it should be placed in the video and not just in the description. And in the case of a livestream, disclosure should be displayed continuously in the form of a ticker during the entire length of the stream.”
The guidelines will apply to all individuals who have ‘access to an audience and the power to affect audiences and their purchasing decisions’ Khare added. She further emphasized that ‘an influencer would require to insert a ‘clear, prominent and hard to miss’ endorsement message along with it. In the case of an endorsement in a picture, disclosure will have to superimposed over the image for the viewers to notice and while livestreamimg, disclosure should be displayed continuously in the form of a ticker during the course of the stream’.
Khare highlighted that misleading ads in any form, format or medium are prohibited. The new guidelines have specified who all need to comply to these new rules, how to comply to them and when, she added.
