Centre Issues New Rules For Influencers, Up To ₹ 50 Lakh Fine If Not Followed
In order to avoid harsh legal consequences, including a prohibition on endorsements, the government on Friday made it essential for social media influencers to disclose all “material” interests, including gifts, hotel accommodations, equity, discounts, and awards.
The disclosures must be made in plain, basic language, must be of a length that is difficult to miss, must be accompanied by endorsements, including live streaming, and must be platform independent. The laws are a part of ongoing efforts to stop deceptive advertising and safeguard customers’ interests in the burgeoning social influencer business, which is anticipated to increase by 20% yearly to reach 2,800 crore by 2025.
The Department of Consumer Affairs has released new guidelines titled “Endorsement Know Hows – for celebrities, influencers and virtual media influencers (Avatar or computer generated character) on social media platforms.”
If there is a violation, the Consumer Protection Act of 2019’s penalty for deceptive advertising will be in effect.
Manufacturers, advertisers, and endorsers may face fines of up to 10 lakh from the Central Consumer Protection Authority (CCPA). Penalties of up to Rs. 50 lakh may be applied for future offences.
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