Misleading advertisements illegal; social media influencers in loop

According to government’s new rules, celebs and social media influencers cannot endorse without thorough checks

MDDTimes

The Department of Consumer Affairs under Ministry of Consumer Affairs has released a guide, “Endorsements Know-hows!” for celebrities, influencers and virtual influencers on social media platforms.

Under the new guidelines, “Any celebrity, influencer or virtual influencer who has access to an audience and can influence their purchasing decisions or opinions about a product, service, brand, or experience must disclose any material connection with the advertiser.”

This must include benefits and incentives, and any monetary or other compensation, trips or hotel stays, media barters, coverage and awards, free products with or without conditions, discounts, gifts and any family or personal or employment relationship.

The Ministry said that the disclosures must be prominently displayed in the endorsement, “making them extremely hard to miss”.

“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,” the Ministry warned.

MDDTimes
Rohit Kumar Singh, Secretary Department of Consumer Affairs

Further, endorsements must clearly state they are “advertisements,” “sponsored,” or “paid promotions”.

The Department of Consumer Affairs’ Guidelines for prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 9 June 2022, state that misleading advertisement in any form, format or medium is prohibited by law.

Rohit Kumar Singh, Secretary Department of Consumer Affairs, said, “With the increasing reach of digital platforms and social media, such as Facebook, Twitter and Instagram, there has been a rise in the influence of virtual influencers, in addition to celebrities and social media influencers. This has led to an increased risk of consumers being misled by advertisements and unfair trade practices by these individuals on social media platforms.”

While, social media influencers in India most work on the sly, promoting products to their unsuspecting followers, in countries like South Korea, it is mainstream advertising.

Recently, the Indian government has taken steps to crack down on fake news peddlers on the internet.

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