Govt issues endorsement guidelines for influencers; violations to attract fine up to Rs 50 lakh, ban

The government on January 20 made it mandatory for social media influencers to disclose their ‘material’ interest in endorsing products and services and violations can attract strict legal action, including a ban on endorsements.

The regulations are part of continuing efforts to curb misleading advertisements as well as protect the interests of consumers amid the expanding social influencer market which is projected to be worth around Rs 2,800 crore by 2025.

The new guidelines named ‘Endorsement Know Hows — for celebrities, influencers and virtual media influencers (Avatar or computer generated character) on social media platforms’ has been issued by the Department of Consumers Affairs.

In case of violation, the penalty prescribed for misleading advertisements under the Consumer Protection Act 2019 will be applicable.

The Central Consumer Protection Authority (CCPA) can impose a penalty of up to Rs 10 lakh on manufacturers, advertisers and endorsers. For subsequent offences, a penalty of up to Rs 50 lakh can be imposed. The authority can prohibit the endorser of a misleading ad from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.

(PTI)

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