New Delhi: In a bid to protect the interests of consumers and prevent misleading advertisements, the Center has come out with a new set of standards for social media influencers. Social media influencers are now required to disclose all “material” interests, such as gifts, hotel accommodations, equity, discounts and rewards, in “Endorsement No-House – for Celebrities, Influencers and Virtual Media Influencers on Social Media Platforms” when Endorsing a product, service or scheme.
Manufacturers, advertisers and endorsers violating the rules can face a fine of up to Rs 10 lakh from the Central Consumer Protection Authority (CCPA). For repeat offence, the maximum fine is Rs 50 lakh. In addition, the CCPA can ban endorsers of deceptive advertisements from endorsing anything for up to one year, and up to three years for subsequent violations.
Consumer Affairs Secretary Rohit Kumar Singh estimates that India’s social influencer business is currently worth Rs 1,275 crore and will grow to Rs 2,800 crore by 2025. Disclosure will be required from people or organizations that have access to an audience and have the authority to influence their audience. ‘ Buying judgment or opinion about a good, service, brand or experience.
Who needs to disclose?
Disclosure is required “where there is a material link between an advertiser and a celebrity/influencer that may affect the weight or credibility of the representation made by the celebrity/influencer”, as per the guidelines.
Step-by-step guide on how to disclose?
– The disclaimer should be plain and basic, easy to skip, and should not contain many links or hashtags.
– When sharing an image, the disclosure must be clearly visible to attract the viewer’s attention.
– Disclosure should be made in a video in both audio and video formats and not just in the description at the bottom of the post.
Live streaming must provide consistent and clear disclosure throughout the stream, not just in subtitles or descriptions.