New guidelines coming for social media influencers in December 2022
The Union government is preparing geared up to release regulations for social media influencers next month, and it’s threatening severe fines for individuals who don’t declare their commercial affiliations.The guidelines are similar to previous guidelines in that they aim to prevent misleading advertising.
Approximately 89% of influencer-related commercials were found to breach the Advertising Standards Council of India’s (ASCI) influencer rules, and many influencers fail to disclose their financial relationships with personal care, fashion, and electronics brands.
The Indian influencer marketing business is estimated to be worth close to 800 crore and might reach 2,500 crore by 2025, according to certain estimations.
The code of the Advertising Standards Council calls for businesses and brands to self-regulate and stipulates that advertisements must be morally righteous and accurate.
Influencer-related breaches accounted for 28% of all complaints to ASCI.
According to the report, out of the 785 complaints filed against influencers, 35% related to personal care products, 17% to food and drink, and 10% to virtual digital assets.
Until the time of publication, questions made to the ministry of consumer affairs’ spokesperson went unanswered.
Simultaneously, the Securities and Exchange Board of India, or Sebi, is drafting its own regulations regarding financial advise provided by unlicensed “fininfluencers,” the source continued.
According to news and media reports, social media influencers who fail to declare brand ties in accordance with the new norms face paying a fine of Rs 10 lakh.
In the event that influencers consistently violate the rules, the fine might reach Rs 50 lakh