The Ministry of Consumer Affairs has released the endorsement guidelines for celebrities and social media influencers.
Key points
- The guide ‘Endorsements Know-hows!’ is for celebrities, influencers and virtual influencers on social media platforms.
- It also aims 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 guide aims 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.
- 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.
Key provisions
- 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.
- Endorsements must be made in simple, clear language and terms such as “advertisement,” “sponsored,” or “paid promotion” can be used.
- They should not endorse any product or service and service in which due diligence has been done by them or that they have not personally used or experienced.
- If there are any violations, the penalty prescribed for misleading advertisements under the Consumer Protection Act 2019 will be applicable.
- In that case, the Central Consumer Protection Authority (CCPA) can impose a penalty of up to Rs 10 lakh on manufacturers, advertisers and endorsers and for repeated offences, a penalty of up to RS 50 lakh can be imposed.
- The CCPA can also prohibit the endorser of a misleading advertisement from making any endorsement for up to one year and for subsequent contravention, prohibition can extend up to three years.
- 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 Department of Consumer Affairs has published Guidelines for prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on 9th June 2022.
