Disclosure Guidelines For Creators Have Become More Stricter: CCPA

Influencers or celebrities should be able to back up any statements they make in advertisements

Social media influencers will soon be required to reveal sponsored postings as paid content if they have a material link to a company; otherwise, they risk being banned from publishing for six months and being fined up to Rs 10 lakh, with a maximum fine of Rs 50 lakh for multiple violations as per the Central Consumer Protection authority guidelines for social media influencers that were released on Friday.

Rohit Kumar Singh, secretary, ministry of consumer affairs, said at the time that the rules were released that the association with marketers should be disclosed in a "hard to miss" manner.

Nidhi Khare, additional secretary, ministry of consumer affairs said that disclosures must be provided in the same language as the promotion, must be sufficiently overlaid on the image for viewers to notice them, must be included in the video rather than simply the description, and must not be mixed in with a collection of hashtags or links.

 According to the criteria, influencers or celebrities should be able to back up any statements they make in advertisements.

Additionally, they advised that the endorser "must have genuinely utilised or experienced the product or service."

According to estimates, the influencer marketing market would be worth Rs 1,275 crore in 2020 and will expand at a CAGR of 20 per cent.

The Advertising Standards Council of India (ASCI) published guidelines for influencer marketing in 2021, stating that influencers must disclose any material relationships with marketers in order to avoid liability for either party.

The government's Friday instructions, though, will be more significant because they are enforceable by law.