Social Media influencers ATTENTION! New rule launched by centre, CCPA can charge fine up to Rs 50 lakh on violating THESE norms
Manufacturers, advertisers, and endorsers who violate the rules might face fines of up to Rs 10 lakh from the Central Consumer Protection Authority (CCPA).
New Delhi: To safeguard consumer interests and prevent deceptive advertising, the Center has released a new set of standards for social media influencers. Social media influencers are now required by the "Endorsement Know-Hows - for Celebrities, Influencers and Virtual Media Influencers on Social Media Platforms" to disclose all "material" interests, such as gifts, hotel accommodations, equity, discounts, and awards, when endorsing any products, services, or scheme.
Manufacturers, advertisers, and endorsers who violate the rules might face fines of up to Rs 10 lakh from the Central Consumer Protection Authority (CCPA). The maximum fine for repeat offenders is Rs 50 lakh. In addition, the CCPA can forbid endorsers of deceptive advertisements from endorsing anything for up to a year, and for subsequent violations, up to three years.
Consumer Affairs Secretary Rohit Kumar Singh estimates that India's social influencer business is currently worth Rs 1,275 crore and would increase to Rs 2,800 crore by 2025. A disclosure will be required from people or organisations that have access to an audience and the authority to influence their audiences' purchasing decisions or views about a good, service, brand, or experience.
Who needs to disclose?
The disclosure is necessary "where there is a material link between an advertiser and a celebrity/influencer that may affect the weight or credibility of the representation made by the celebrity/influencer," according to the guidelines.
Step-by-step guide on how to disclose?
- The disclaimer should be written in plain and basic terms, be easy to miss, and not contain several links or hashtags.
- Disclosures should be clearly visible over a picture when sharing it, drawing the attention of viewers.
- Disclosures should be made in both audio and video format in a video, not just in the description below the post.
- Live streaming should provide disclosures continually and clearly throughout the whole stream, not only in the subtitles or descriptions.