New Policy Guidelines for Social Media Influencers: TechShu Industry Updates

The govt. will come out with detailed guidelines within the next 7-10 days for social media influencers who endorse brands & products.

Failing to disclose financial ties with brands through ‘SELF DISCLOSURE’ will result in hefty fines, under the Consumer Protection Act, starting at ₹10 lakh for first-time offenses that might go up to ₹50 lakh for later offenses! Additionally, an Influencer (Endorser) may be restrained from endorsements for 1-3 years and subjected to repeated violations.

Things To Know

Influencers will henceforth be treated as ‘Endorsers’ of products and services of the brand concerned.

Instances where disclosures are a must :

1. If there is any material connection between the advertiser and the influencer. A material connection isn’t limited to just monetary compensation. Disclosure is required even if there is anything of value given to mention or talk about the Advertiser’s product or service.
2. If the Advertiser or its Agents gives free or discounted products or services or other perks and then the influencer mentions one of its products or services, a disclosure is needed even if they weren’t specifically asked to talk about that product or service.

Things to do for Influencers :

1. Influencers should put out a ‘self disclosure’. The disclosure must be made visible on the video & description content saying that it is a ‘paid promotion/ paid review’
2. Disclosures should be placed in a manner that is hard to miss by.
3. Disclosures should not be buried in a group of hashtags or links.
4. Using a platform’s disclosure tools/ paid tags (on YouTube, Facebook, and Instagram using features like Paid Collaboration, and Sponsored video) should be considered in addition to an influencer’s own disclosure.
5. Influencers or endorsers should not agree to create/ distribute content with covert messaging or misleading ads or else they will risk penal procedures.