Over 2,700 Violations Carried Out By Influencers; Instagram Tops List

Earlier in May 2021, the Advertising Standards Council of India (ASCI) released specific guidelines for social media influencers. Following this, in January 2023, the government also announced that influencers could be held responsible for unfair trade practices such as misleading advertisements. Engaging in such practice could also land the influencer a penalty up to ₹50 Lakhs or even a ban from taking up endorsements for a year. Following the announcement in 2021, ASCI announced that they had processed 2,767 complaints of violations of influencer guidelines.

Violations Extending From Meta To Youtube

More than half of the violations recorded by the ASCI were found on the Meta-owned Instagram platform, after which Youtube contributed a third of them. Chief executive and secretary general of the body, Manisha Kapoor, cited the government notification "the Central Consumer Protection Authorities also now requires disclosure of material connection between brands and influencers. Hence, non-disclosures are potential violations of the law." In the financial year 2022, a total number of advertising violations stood at 1,592, with virtual digital assets like bitcoins topping with nearly 24 per cent of cases.

For the nine months between April to December 2022, the personal care category followed up closely with 1,175 complaints received, accounting for about 23 per cent of cases. Third on the list was the food and beverage sector at 16 per cent. In terms of the platforms that advertised violating the guidelines, Instagram was on the top with about 53 per cent of the total violations in the financial year 2022, which went on to increase to 65 per cent in the first nine months of the financial year 2023. As for the second most popular platform for advertising - Youtube, the number of violations declined from 37.8 per cent to 27 per cent.

Transparency About Brand Associations

Stressing the need for strict guidelines for social media influencers, ASCI quoted a recent survey they carried out on 820 respondents. Among them, 79 per cent were found saying they trust influencers, and 90 per cent said they had made purchases driven by influencer endorsements. Furthermore, official data from the government suggests that the social influencer market is expected to grow by 20 per cent annually to reach ₹2,800 crores by 2025. In line with the expanding social influencer market, it becomes necessary to hold the advertisers accountable for the products they endorse to protect the consumers' interests.

According to NDTV, the survey also said transparency and honesty about brand associations is the leading reason for influencer trust, followed by relatable lifestyle and content. With the consumer base growing and evolving, ensuring consumers stay protected from unfair trade practices becomes even more important. Self-regulatory bodies have made it a point to ensure that these guidelines are abided by and keep a check on the growing social media market.

Also Read: Govt Releases Guidelines For Social Media Influencers; False Advertisement Can Now Attract Up To Rs 50 Lakh Fine