Social Media Influencers Have To Follow New Disclosure Norms

The government has made it mandatory for social media influencers to disclose their "material interest" in endorsing products.

Mandatory To Disclose Material Interest In Endorsements

The government has made it mandatory for social media influencers to disclose their "material interest" in endorsing products and services and violations can attract strict legal action, including ban a on endorsements.

Regulations Intended To Curb Misleading Advertisements

The regulations are part of continuing efforts to curb misleading advertisements as well protect the interests of consumers amid the expanding social influencer market.

Penalty Will Be Applicable In Case Of Violation

In case of a violation, penalty prescribed for misleading advertisement under the Consumer Protection Act 2019 will be applicable.

Penalty Of Up To Rs 10 Lakh Can Be Imposed

The Central Consumer Protection Authority can impose penalty of up to Rs 10 lakh on manufacturers, advertisers and endorsers. For subsequent offences, penalty of up to Rs 50 lakh can be imposed.

Guidelines Issued To Protect Consumers 

The guidelines have been issued under the ambit of the consumer law that provides framework for the protection of consumers against unfair trade practices and misleading advertisements.

Social Influencer Market Size To Rise To Rs 2,800 Crore

The size of social influencer market in India in 2022 was of the order of Rs 1,275 crore and by 2025, it is likely to rise to Rs 2,800 crore, says Consumer Affairs Secretary Rohit Kumar Singh.

Guidelines Will Encourage Responsible Promotion

The guidelines will encourage social media influencers to behave responsibly as far as the disclosure is concerned to the consumers, says Consumer Affairs Secretary Rohit Kumar Singh.

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