New rules for social media influencers; Up To ₹ 50 Lakh Fine
HY News
21 January, 2023 12:05 pm IST
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The government cracked down on the booming market of social influencers on Friday with new rules, including publishing clear disclosures about brand associations, to bring transparency and protect consumers.
Influencers who fail to comply risk facing hefty fines of as much as ₹50 lakh or being barred from endorsing products for up to six years.
The disclosures should be in simple and clear language, should be of duration that is hard to miss, must be run with endorsements, including live streams and should be platform agnostic.
The regulations are part of continuing efforts to curb misleading advertisements as well protect the interests of consumers amid the expanding social influencer market which is projected to be grow 20 per cent annually to reach ₹ 2,800 crore by 2025.
The new guidelines named 'Endorsement Know Hows - for celebrities, influencers and virtual media influencers (Avatar or computer-generated character) on social media platforms' has been issued by the Department of Consumers Affairs.
In case of violation, the penalty prescribed for misleading advertisement under the Consumer Protection Act 2019 will be applicable.
The Central Consumer Protection Authority (CCPA) can impose penalty of up to ₹ 10 lakh on manufacturers, advertisers and endorsers. For subsequent offences, penalty of up to ₹ 50 lakh can be imposed.Consumer affairs secretary Rohit Kumar Singh said the new guidelines would most impact personal care and the clothing segments as they are the biggest category that employs social media influencers to promote products.
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