Influencers in India to be fined for not declaring commercial ties with promoted brands, products

The Government of India is soon going to place certain new guidelines for social media influencers making it mandatory for them to declare their association with a brand or product they endorse.

“The department of consumer affairs is coming out with guidelines on social media influencers. It is creating dos and don’ts for them,” an official source has told a news agency.

As per proposed guidelines, when a social media influencer endorses any brand after taking money, they will have to declare their association with that brand.

Influencers often endorse products and brands on their page for which they are sometimes paid. Brands like to promote their products through these influencers as they enjoy a large following.

The guidelines will have to be followed by influencers as well as celebrities who endorse any brand on social media.

The Central Consumer Protection Authority (CCPA), under the Department of Consumer Affairs, has completed consultation with all stakeholders concerned on the matter.
The posts will now have disclaimers when it’s an endorsement. The guidelines might come into implementation within the next 15 days. If violated, a person may have to scoff up USD 12,500 for the first time, USD 25,000 the second time, and USD 62,500 for continuous violation.

Meanwhile, the department has also completed the process of developing a framework to curb fake reviews posted on e-commerce websites.

In May, the department along with the Advertising Standards Council of India (ASCI) held a virtual meeting with stakeholders, including e-commerce entities, to discuss the magnitude of fake reviews on their platforms.

Fake reviews often mislead customers who shop online, typically without getting to see the product physically or experiencing it.(WION)