The Government of India has released fresh endorsement guidelines for celebrities and social media influencers to protect consumers’ rights amidst a rapidly growing digital world where advertisements are no longer limited to traditional media like print, television, or radio. The government has clearly said that disclosures must be prominently and clearly displayed in the endorsement along with the terms like ‘advertisement’, ‘sponsored’ or ‘paid promotion’. The Department of Consumer Affairs under Ministry of Consumer Affairs, Food and Public Distribution has released a guide ‘Endorsements Know-hows!’ for celebrities, influencers and virtual influencers on social media platforms.
Consumer Protection Act
The guidelines are aimed to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines.
Growing digital world makes guidelines essential
The Centre has issued these guidelines in response to the rapidly growing digital world, where complaints are coming in big number. With the increasing reach of digital platforms and social media, such as Facebook, Twitter and Instagram, there has been a rise in the influence of virtual influencers, in addition to celebrities and social media influencers. This has led to an increased risk of consumers being misled by advertisements and unfair trade practices by these individuals on social media platforms.
Disclosures to be displayed in endorsement
The guidelines specify that disclosures must be prominently and clearly displayed in the endorsement, making them extremely hard to miss. Any celebrity, influencer or virtual influencer who has access to an audience and can influence their purchasing decisions or opinions about a product, service, brand, or experience must disclose any material connection with the advertiser. This includes not only benefits and incentives, but also monetary or other compensation, trips or hotel stays, media barters, coverage and awards, free products with or without conditions, discounts, gifts and any family or personal or employment relationship.
Personal use or experience of influencers
Endorsements must be made in simple, clear language and terms such as “advertisement,” “sponsored,” or “paid promotion”. They should not endorse any product or service in which due diligence has not been done by them or that they have not personally used or experienced. The guide is released in alignment with the guidelines set by the Consumer Protection Act of 2019. The Act established guidelines for protecting consumers from unfair trade practices and misleading advertisements.
Misleading advertisements prohibited by law
The concerned department has published these guidelines for prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, which outline the criteria for valid advertisements and the responsibilities of manufacturers, service providers, advertisers and advertising agencies. These guidelines also touched upon the celebrities and endorsers. It states that misleading advertisement in any form, format or medium is prohibited by law. The industry has appreciated and supported the release of these guidelines, stated that this will further strengthen the industry and protect consumer interests.
CCPA issued notices to e-commerce entities
Only recently, the Central Consumer Protection Authority (CCPA) issued notices to e-commerce entities, Amazon, Flipkart and Snapdeal for sale of toys in violation to standards directed for compulsory use by the Central Government. It sought response from the e-commerce entities within 7 days from issuance of notice, failing which necessary action may be initiated against. CCPA has also expanded the country-wide campaign to prevent sale of spurious and counterfeit goods that violate Quality Control Orders (QCOs) to include consumer durables such as electric immersion water heaters, electric iron, domestic gas stove, microwave oven, sewing machines etc.
CCPA wrote to District Collectors across the country
CCPA has written to District Collectors across India to investigate unfair trade practices and violation of consumer rights concerning manufacture or sale of such goods and submit action taken report to CCPA. Under Consumer Protection Act, 2019, “defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained under any law for the time being in force.
Consumer awareness
Department of Consumer Affairs (DoCA) also implements policies for the benefit of consumers and public at large, strengthening consumer protection and awareness in the process, undertaking various initiatives towards this objective driving the consumer rights and information activity. Creating awareness among consumers about these initiatives, especially in rural and backward areas is necessary so that consumers may take benefit from these initiatives and are better informed about their choices. DoCA has been conducting country-wide multimedia awareness campaigns titled “Jago Grahak Jago”. Through simple messages, consumers are made aware of fraudulent practices and problems and the mechanism to seek redressal.
The Government of India has released fresh endorsement guidelines for celebrities and social media influencers to protect consumers’ rights amidst a rapidly growing digital world where advertisements are no longer limited to traditional media like print, television, or radio. The government has clearly said that disclosures must be prominently and clearly displayed in the endorsement along with the terms like ‘advertisement’, ‘sponsored’ or ‘paid promotion’. The Department of Consumer Affairs under Ministry of Consumer Affairs, Food and Public Distribution has released a guide ‘Endorsements Know-hows!’ for celebrities, influencers and virtual influencers on social media platforms.
The guidelines are aimed to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines.
The Centre has issued these guidelines in response to the rapidly growing digital world, where complaints are coming in big number. With the increasing reach of digital platforms and social media, such as Facebook, Twitter and Instagram, there has been a rise in the influence of virtual influencers, in addition to celebrities and social media influencers. This has led to an increased risk of consumers being misled by advertisements and unfair trade practices by these individuals on social media platforms.
The guidelines specify that disclosures must be prominently and clearly displayed in the endorsement, making them extremely hard to miss. Any celebrity, influencer or virtual influencer who has access to an audience and can influence their purchasing decisions or opinions about a product, service, brand, or experience must disclose any material connection with the advertiser. This includes not only benefits and incentives, but also monetary or other compensation, trips or hotel stays, media barters, coverage and awards, free products with or without conditions, discounts, gifts and any family or personal or employment relationship.
Endorsements must be made in simple, clear language and terms such as “advertisement,” “sponsored,” or “paid promotion”. They should not endorse any product or service in which due diligence has not been done by them or that they have not personally used or experienced. The guide is released in alignment with the guidelines set by the Consumer Protection Act of 2019. The Act established guidelines for protecting consumers from unfair trade practices and misleading advertisements.
The concerned department has published these guidelines for prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, which outline the criteria for valid advertisements and the responsibilities of manufacturers, service providers, advertisers and advertising agencies. These guidelines also touched upon the celebrities and endorsers. It states that misleading advertisement in any form, format or medium is prohibited by law. The industry has appreciated and supported the release of these guidelines, stated that this will further strengthen the industry and protect consumer interests.
Only recently, the Central Consumer Protection Authority (CCPA) issued notices to e-commerce entities, Amazon, Flipkart and Snapdeal for sale of toys in violation to standards directed for compulsory use by the Central Government. It sought response from the e-commerce entities within 7 days from issuance of notice, failing which necessary action may be initiated against. CCPA has also expanded the country-wide campaign to prevent sale of spurious and counterfeit goods that violate Quality Control Orders (QCOs) to include consumer durables such as electric immersion water heaters, electric iron, domestic gas stove, microwave oven, sewing machines etc.
CCPA has written to District Collectors across India to investigate unfair trade practices and violation of consumer rights concerning manufacture or sale of such goods and submit action taken report to CCPA. Under Consumer Protection Act, 2019, “defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained under any law for the time being in force.
Department of Consumer Affairs (DoCA) also implements policies for the benefit of consumers and public at large, strengthening consumer protection and awareness in the process, undertaking various initiatives towards this objective driving the consumer rights and information activity. Creating awareness among consumers about these initiatives, especially in rural and backward areas is necessary so that consumers may take benefit from these initiatives and are better informed about their choices. DoCA has been conducting country-wide multimedia awareness campaigns titled “Jago Grahak Jago”. Through simple messages, consumers are made aware of fraudulent practices and problems and the mechanism to seek redressal.
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