Government issues guidelines for social media influencers to disclose material interest

The authority can prohibit the endorser of a misleading ad from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.

Published: 20th January 2023 05:03 PM  |   Last Updated: 21st January 2023 10:29 AM   |  A+A A-

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By Express News Service

NEW DELHI:  Celebrities and social media influencers now will require to disclose their material connections with a brand, service or company, including free products, contests and sweepstakes entries, trips or hotel stays, media barters, coverage and awards, consumer affairs ministry said in a fresh policy on ‘endorsements-know-hows’ announcement on Friday.

“The whole issue is centred on the consumer’s right to know. It is the responsibility of the endorsers, celebrities and influencers or other advertisers to truthfully disclose whatever information the consumer must know before making any decision for purchase,” the ministry said.

The ministry further stated that when there is a material connection between an advertiser and celebrity/influencer that may affect the weight or credibility of the representation made by the celebrity/influencer. 

These connections include monetary or other forms of compensation, free products, contests and sweepstakes entries, trips or hotel stays, media barters, coverage and awards, or any personal, family or employment relationship.

“Celebrities/influencers are always advised to review and satisfy themselves that the advertiser is in a position to substantiate the claims made in the advertisement. It is also recommended that the product and service must have been actually used or experienced by the endorser,” said the ministry said in the statement.

Also laying down a note of caution for influencers or celebrities, the ministry noted should they fail to disclose any material connection or noncompliance with the Consumer Protection Act 2019 and the Rules made thereunder would make such violators liable for strict action under the law.

Influencers need to disclose material link with brand
A government statement said when there is a material connection between an advertiser and celebrity/influencer that may affect the weight or credibility of representation made by a celebrity/influencer. These connections include monetary or other forms of compensation

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