Centre issues guidelines for social media influencers; hefty fine for violators

Aimed at curbing possible malpractices by social media influencers including celebraties, the Consumer Affairs Ministry on Friday released endorsement guidelines which purposes hefty fine against violators.

As per fresh guidelines, violators have to pay a fine of Rs 10 lakh and fine can go up to Rs 50 lakh for repeated offenders.

It also says the influencer can also be barred from endorsing products in case of repeated non-compliance with the guidelines.

The guidelines aims to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines, Rohit Kumar Singh, Secretary of the Department of Consumer Affairs told media here.

The guidelines will be applicable to all social media influencers including celebraties, virtual influencers, computer-generated avatars, who behave in a similar manner as an influencer.

The influencers should be able to substantiate the claims made by them.

Highting that persons who should disclose the nature of their endorsements, Rohit Kumar Singh, secretary of the department of consumer affairs, said, “Individuals/groups who have access to an audience and the power to affect their purchasing decisions about a product, brand or service because of the influencer’s authority, knowledge, position or relationship with their audience.”

The Consumer Protection Act, 2019 provides the the framework for the protection of consumers against unfair trade practices and misleading advertisements.

Influencers will face consequences if they do not disclose to their followers if they have been paid for the promotion of the product they are showcasing on their social media handles.

Endorsements must be made in simple, clear language and terms such as "advertisement," "sponsored," or "paid promotion" can be used. They should not endorse any product or service and service in which due diligence has been done by them or that they have not personally used or experienced, he said.

Before endorsing, the product and service must have been actually used or experienced by the endorser. In case of default, the consumers can seek legal action, the Ministry said.

The advertisements must contain truthful and honest representation, and should not mislead consumers by exaggerating the accuracy, scientific, validity, or practical usefulness or capability of performance of the product, the ministry said.