The Consumer Affairs Ministry has released endorsement guidelines for social media influencers.
Punishment
A fine of Rs 10 lakh will be slapped on the offenders, which can go up to Rs 50 lakh for repeated offenders.
The influencer can even be barred from endorsing products for up to 6 years in case of repeated non-compliance.
The Consumer Protection Act, 2019 provides the framework protecting consumers against unfair trade practices and misleading advertisements.
No bold claims
Influencers have to be able to substantiate the claims they make.
The product or service has to have actually been used or experienced by the endorser.
Consumers have the right to seek legal actions against those defaulting.
Virtual influencers such as computer generated avatars, who behave in a similar manner as an influencer are also covered by the guidelines.
No surreptitious marketing
Disclosures have to be placed in the endorsement message in such a way that they are clear, prominent and extremely hard to miss.
The advertisements must contain truthful and honest representation.
It should not mislead consumers by exaggerating the accuracy, scientific, validity, or practical usefulness or capability of performance of the product.
Market size
The size of the social media influencer market in India in 2022 was Rs 1,275 crore.
This figure is likely to rise to Rs 2,800 crore with a CAGR of 19-20 percent by 2025.
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