Considerations to Keep in Mind When Promoting Products and Services on Social Media

Guidelines for Social Media

The Advertising Standards Council of India (ASCI) is a self-regulatory organization that monitors digital and social media platforms for violations of its Influencer Advertising Guidelines in order to address concerns about dubious market practices in the rapidly growing social media influencer-based marketing sector. In July 2021, ASCI began monitoring these platforms. In May 2022, they held a virtual meeting with stakeholders, including e-commerce entities, to discuss the issue of fake reviews on their platforms.

So, The Consumer Affairs Ministry in India issued new guidelines on 20 January 2023 for social media influencers, which include disclosing any sponsored content, clearly identifying sponsored posts, and ensuring that the content is not misleading. The guidelines also state that influencers must disclose any material connections they have with the brands they promote and avoid promoting products or services that are likely to cause harm to consumers. The guidelines are intended to protect consumers from false or misleading advertising and to ensure that influencers are transparent about their relationship with brands.

The guidelines include requirements for disclosing any monetary benefits received and penalties for infractions, including fines of up to Rs 10 lakh for a first offense and potentially up to Rs 50 lakh for repeat offenders, as well as a potential 6-year ban from product endorsement for continuous violations.

It is a good step towards transparency and accountability for influencers and will help protect consumers from being misled by false or biased reviews or promotions. However, some influencers may have mixed opinions as it may add an additional step in promoting products, brands, and services. It may also lead to penalties if found not disclosing the monetary benefits or sharing misleading information.