Legal Compliance for Social Media Influencers will be a top priority now after the new advertising guidelines by the Central Consumer Protection Authority (CCPA) came into force in June 2022. Social Media Influencers have to screen and check claims they make in ads or face legal consequences.
Legal Compliance for Social Media Influencers
An Advertising Standards Council of India (ASCI) report says that influencers were linked to 92% of crypto-related advertising violations between January and May this year. Amitabh Bachchan, Ranveer Singh and Salman Khan have been among those who have endorsed crypto exchanges through ads or promotions.
Another report by ASCI named well-known actors and influencers including Ranveer Singh, Jacqueline Fernandez, Sania Mirza, Katrina Kaif, Anushka Sharma, MasterChef India finalist Karishma Sakhrani, blogger Shlok Srivastava and influencer Bhuvam Bam as violators of its advertising code. The report said these celebrities and influencers failed to comply with ASCI’s Disclosure Guidelines and represented brands such as Myntra, Nykaa, Manyavar and Kama Ayurveda.
ASCI is a self-regulatory organization established to curb the practice of misleading consumers and unfair advertising. ASCI has laid down certain guidelines that influencers and brands need to comply with.
Here is the ASCI #Checklist of do’s and don’ts for Influencers and Brands: https://lnkd.in/dmGzbrWN
Penalties for Misleading Ads by Influencers?
The norms of the Advertising Standards Council of India (ASCI), which works directly with the government, have not been legally enforceable till now, but the penalties for false and misleading advertising are set out in Section 21 of the Consumer Protection Act 2019. The penalty of 10 to 50 lakh INR (approximately) can be imposed by the Central Consumer Protection Authority (CCPA) on manufacturers, advertisers, and endorsers for misleading advertisement. The CCPA can also prohibit the influencer of a misleading ad from future endorsements for up to three years.
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