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 :
- 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.
- 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 :
- 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’
- Disclosures should be placed in a manner that is hard to miss by.
- Disclosures should not be buried in a group of hashtags or links.
- 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.
- Influencers or endorsers should not agree to create/ distribute content with covert messaging or misleading ads or else they will risk penal procedures.
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