New Government Guidelines Mandate Social Media Influencers to Disclose Sponsored Posts as Paid Content

The government has recently announced new guidelines for social media influencers, making it mandatory for them to disclose sponsored posts as paid content if there is a material connection between them and a brand. Failure to do so could result in influencers being prohibited from publishing for six months and facing a penalty of Rs 10 lakh, with repeat offenders facing up to Rs 50 lakh in fines.

According to the guidelines, the association with advertisers should be displayed in a “hard to miss” format. Disclosures should be made in the same language as the promotion, superimposed over the image, placed in the video, and not mixed with a group of hashtags or links. Influencers or celebrities should also be able to substantiate the claims made in their promotions, with the product or service actually being used or experienced by the endorser.

Influencer marketing is a popular form of social media marketing where brands engage content creators or social media influencers with a large following to endorse their products or services in exchange for compensation. The market size of influencer marketing was Rs 1,275 crore in 2020 and is expected to grow at a CAGR of 20%.

While the Advertising Standards Council of India (ASCI) issued guidelines for influencer marketing in 2021, the new government guidelines will be legally enforceable and have a larger impact on the industry. This move aims to bring more transparency and accountability to influencer marketing practices.

These guidelines are set to come into effect soon, and influencers are advised to comply to avoid facing penalties. Stay tuned for more updates on this developing story.