India, being one of the most populated countries in the world, is also a growing market for many Social Media-based initiatives. As you browse the near-limitless corners of the internet, you might have noticed that there’s a rather large number of Indian content creators and influencers, which also serves as testimony to the rising popularity of the medium in the region.

As its market of influencers continues to grow, the country has introduced endorsement guidelines to limit unfair trade practices and misleading promotions online. It might not be the first to give this kind of regulatory decision a crack, but India has also proven that it’s not afraid to take matters that involve the web into its own hands.

Pay Attention Now

Just last Friday, the Department of Consumer Affairs held a press conference announcing some new guidelines that would make it mandatory for Social Media influencers to disclose promotional content in accordance with its Consumer Protection Act of 2019. Failure to follow the guidelines will make influencers liable for a fine of up to $12,300. For the extra hard-headed (repeat offenders), this can go as high as $61,600. In Indian Rupees, these fines are a million and 5 million, respectively. Mama Miya!

The department made it clear that the guidelines apply to Social Media influencers and virtual avatars that promote products and services online. The disclosure should be easy to notice in post descriptions where you usually find Hashtags or links. The department mentioned that it should also be prominent enough to be noticeable within the content.

In terms of content promoted in videos, the department said that disclosures for paid promotions should be placed within videos, not just in the description. This extends to both audio-only and video formats. Influencers must also disclose if they promote a brand, service, or product during live streams. To add, the department also stated that disclosures and endorsements should be in the native language of the content.

Consumer Affairs Department Secretary Rohit Kumar Singh said that the department is communicating with various tech companies about deploying some crawling algorithms to identify offenders. Meanwhile, consumers can file complaints if they find influencers violating the guidelines. As per Singh:

“Today’s guidelines are aimed at social influencers who have a material connection with the brand they want to promote on various social media platforms. So this is an obligation for them to behave responsibly. You can never cover it 100%. This is a cat-and-mouse thing… So, the idea is to protect the interests of the consumers and let him not be taken for a ride by showing him something as unbiased whereas actually, it is a paid thing.”

The Wrap

According to secretary Singh, India’s social influencer market was valued at around $157 million last year. It could reach as much as $345 million by 2025, which is roughly just two years out. The Indian advertising industry’s self-regulatory body Advertising Standards Council of India (ASCI) has already given the go-signal for the government’s move, which could open the door for many other governments across the globe to try and implement similar control elements.

Sources

http://bit.ly/3XgIGaw