New Delhi: Mandatory disclosure of paid promotions and no false promotions without backing of authentic data – these are among a set of potential guidelines for digital promotions expected to be issued by the consumer affairs ministry this month, so that Deceptive ads can be removed from social. Media platforms, ThePrint has learned.
The guidelines will cover work done by social media influencers, celebrity promotions and influencer marketing companies that manage influencers and create influencer campaigns with organizations that want to sell their products.
Nidhi Khare, Additional Secretary, Ministry of Consumer Affairs, said violators will get an opportunity to plead their cases before the ministry and explain why they did not follow the guidelines, but they will have to pay between Rs 10 lakh. may fall. and a fine of Rs 50 lakh if found guilty.
In June this year, advertising industry watchdog, Advertising Standards Council of India (ASCI) raised Issues with several major education technology (ed-tech) firms and crypto companies making misleading claims in their advertisements.
Last year, ASCI free In its own ‘Guidelines for Influencer Advertising in Digital Media’ and suggested that social media posts relating to paid content or advertisements should be labeled as such, otherwise it amounts to deliberate deception.
However, the ASCI is a self-regulating body and does not have the power to impose penalties. Sources in the ministry and organization said it is helping the government to identify and create a creative ecosystem in which “misleading claims” are comparatively less, if not completely removed.
Now ASCI hopes that the new ministry guidelines will enable the government to protect consumers from paid promotions without proper disclosure.
Sources told ThePrint that the guidelines are now awaiting the approval of the Ministry of Information and Broadcasting (I&B) before releasing them. Although issued by the Ministry of Consumer Affairs, the Ministry of Information and Broadcasting needs to be on the board, as it is the one that oversees the communication platforms.
“We are particularly interested in disclosures. We want organizations and influencers to disclose what they need to promote or endorse services and products,” Rohit Kumar Singh, secretary of the consumer affairs ministry, told ThePrint. When has the money been received?
Meanwhile, social media influencers and influencer management companies claimed they were willing to be careful, but said penalties for negligence should depend on the company’s financial value and category.
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‘Need to draw a line’
Ministry sources told ThePrint that the formulation of the guidelines was followed by several consultations between ministry officials, self-regulatory bodies and advertising professionals. The ministry says that while it wants to encourage creativity, everyone needs to “draw a line” to ensure that consumers are not misled.
“There will be people in the industry who will continue to find new ways to circumvent laws. We understand the needs of the advertising industry, but have a line drawn especially for those who mislead the public. The intention here is not to hinder business or suppress any voice, but there is always a line that should not be crossed,” Kumar said.
He added: “With increasing digitization, there is a need for disclosure. There is also a role for social media middlemen as there are many misleading advertisements in those platforms. Paid content on television is still there (in line with the disclosure requirement), but many Social media do not influence and hence these guidelines need to be implemented.”
The guidelines will also extend to digital news media.
“Digital news organizations that do not follow the rule and disclose ‘advertisements’ will also come under the purview of these guidelines and will have to be penalised. Some of them still do not disclose whether they are endorsing any product or service after receiving the money, and hence will be warned against such misconduct,” claimed Kumar.
While business people agree that there is a need for regulations, the penalties for violating the guidelines are something that some are concerned about.
Amit Mandal, Founder, Palpki, said, “There is a great need for regulations in this industry as it is growing at a rapid pace, and we want consumers to know more about influencers like Bollywood celebrity advertisements on Indian TV, newspapers and billboards. Be aware.” , Influential Marketing Company.
He said: “According to me, fines can be based on size and type of influencers rather than a fixed amount for all influencers. Everyone in the industry should be aware of this news, especially micro-influencers. Because of their low income, micro-influencers should be fined less than celebrities.”
’29 percent complaints related to this sector’
Meanwhile, Manisha Kapoor, CEO and general secretary of ASCI, told ThePrint that the organization was “well prepared to support the government” on this agenda if necessary.
“ASCI is refining our AI-based monitoring system for social media influencers. Last year around 29 per cent of our complaints were related to this area. Given our expertise in this area, we are well positioned to support the government on this agenda, if they need it. ASCI has the ability to both identify and deal with such potential advertisements with agility,” she said.
The ASCI in its previous reports – June and last year – had emphasized the main idea – “voluntary compliance”.
“Voluntary compliance should remain the first line of resolution as it is fast, effective and does not cost the taxpayer any money. However for serious and recurring offences, stringent and punitive measures add an extra layer of protection for consumers. As long as the guidelines are in line with global standards, and have considered the views of various stakeholders, we do not believe there will be more burden on the ecosystem,” said Kapoor.
(Edited by Polomi Banerjee)
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