Consumer Affairs Ministry Issues Guidelines For Social Media Influencers; Fine Up to 50 Lakhs
New Delhi, 21st January 2023: The Consumer Affairs Ministry on Friday (January 20) announced some guidelines for social media influencers and celebrities. If the guidelines are not followed, they might be subject to fines of up to Rs 10 lakh, which could increase to Rs 50 lakh for repeat offences and potentially result in a ban of up to six years.
When announcing the rules, Consumer Affairs Secretary Rohit Kumar Singh reminded the media that the rights of consumers are at the heart of the whole situation.
The guidelines said, “It is the responsibility of the endorser, celebrities and influencers or other advertisers to truthfully disclose whatever information the consumer must know before making any decision for purchase.”
“Individuals or groups who have access to an audience and the power to affect their purchasing decisions about a product, brand or service because of the influencer’s authority, knowledge, position or relationship with their audience,” the guidelines said.
Influencers are described as creators who promote goods and have a significant impact on the choices or viewpoints of their audience. The guidelines also stated that virtual influencers, who are characterised as fictional computer-generated characters with authentic human features, must reveal their endorsements.
The influencers should be able to back up their assertions. The basis for protecting consumers from deceptive advertising and unfair business practices is provided by the Consumer Protection Act of 2019.
The ministry further stated that the product and service must have been used or experienced by the endorser and consumers may pursue legal action against defaulters.
