In today’s digital landscape, influencers have emerged as pivotal figures in promoting products and services. However, a mounting concern has surfaced over influencers who flout the advertising guidelines established by the Advertising Standards Council of India (ASCI). As Manisha Kapoor, Secretary General and CEO of ASCI, explained to Storyboard18, many influencers fail to disclose material connections with brands, whether through monetary compensation, free products, or other perks.
These regulations, crafted by ASCI, aim to ensure transparency and safeguard consumers against deceptive marketing tactics. Yet, despite these safeguards, numerous influencers continue to promote products without proper disclosures, often neglecting to label paid promotions or sponsored content clearly. This growing disregard for ASCI’s guidelines raises significant ethical questions and underscores the urgent need for more stringent enforcement to preserve the integrity of influencer marketing.
Instances of misleading influencer advertising are not uncommon in India. One notable example is the controversy surrounding Patanjali Ayurved and the actions taken by the Securities and Exchange Board of India (SEBI).
This is not just about compliance; it’s about doing the right thing.
In May 2024, the Supreme Court weighed in on the matter in the case of Indian Medical Association & Anr. vs. Union of India & Ors., holding that influencers and celebrities share equal responsibility for misleading advertisements. The ruling was prompted by Patanjali’s advertisements claiming to cure ailments like diabetes. The court further mandated that advertisers submit a self-declaration prior to the airing of such ads.
Just a month later, in June 2024, SEBI flagged a staggering 8,890 instances of misleading content across social media platforms concerning the securities market. SEBI subsequently instructed platforms like Facebook, Instagram, Telegram, and YouTube to take action against the accounts responsible for these false claims.
Nevertheless, ASCI notes that some brands remain committed to working with responsible influencers, ensuring that their campaigns uphold honesty and accountability.
The Advertising Standards Council of India (ASCI) has emphasized that disclosures must be conspicuous, clear, and readily apparent. However, influencers often place these disclosures at the end of their posts, hide them within hashtags, or neglect them entirely in live or audio content, making it challenging for consumers to identify advertisements.
“Brands whose products or services are being promoted share the responsibility of ensuring these guidelines are adhered to,” said Kapoor.
She added, “Health and financial influencers, in particular, face heightened accountability, with mandatory display of registrations, licenses, and qualifications to protect consumer well-being and financial security.”
Ankit Lodha, founder of LA Empire, remarked that the ASCI report underscores the critical need for industries to advertise responsibly. Misleading advertisements, particularly in sectors like real estate and betting, not only erode consumer trust but also create unnecessary complications.
The question remains: Are influencers even aware of these guidelines?
In short, celebrity or macro influencers tend to be well-versed in these rules, while micro and nano influencers are more likely to overlook or violate them. “I’m familiar with the ASCI guidelines to some extent. It’s crucial for us to clearly disclose paid partnerships and communicate transparently with our audience, using hashtags like #Ad or #Sponsored, or the paid partnership feature on platforms such as Instagram or YouTube,” said Siddharth Nigam, a celebrity influencer and actor.
“We must also disclose gifted items or freebies when reviewing products. Even without a monetary exchange, it’s important to clarify the nature of the collaboration,” Nigam said.
However, Ankit Panicker, Business Head at Pocket Aces, pointed out that while these guidelines are meant to protect consumers, there is often a delicate balance between compliance and creativity. “Some influencers may skirt the rules by employing subtle product placements or offering misleading disclosures—requests that brands sometimes encourage — which can blur the lines between organic content and advertising,” Panicker explained.
The delicate balance between compliance and creativity?
Such violations can arise from brand pressures for subtle promotions or a lack of clarity about the rules. For example, some brands prefer ads to appear more organic, which can obscure the line between content and advertisement, leading to unintentional non-compliance. “Balancing authenticity with disclosure is a challenge every creator faces,” said CA Sakchi Jain, a content creator in the financial education space.
“Brands often want content that feels natural and drives engagement. They may ask for toned-down disclosures or prioritize creative freedom. While I value brand collaborations, I believe adhering to ASCI’s standards is non-negotiable. It’s about finding the right balance between creativity and compliance, ensuring that the audience gets value without compromising their trust.”
In contrast, a micro-influencer, who wished to remain anonymous, noted that brands often treat macro and micro influencers differently, further complicating the issue of compliance.
As influencer marketing continues to dominate the digital landscape, concerns grow over the disregard for ethical advertising standards in India. Despite ASCI’s instituting guidelines to ensure transparency, many influencers fail to properly disclose brand partnerships, thus undermining consumer trust. While some brands and influencers are committed to responsible practices, the balance between creative freedom and regulatory compliance remains a challenge with growing pressure on influencers to blur the lines between authentic content and advertising. Experts agree about an urgent need for more rigorous enforcement and greater awareness of these crucial guidelines.