With the rise of social media, influencers have become powerful figures in marketing and advertising. They shape public opinion, promote brands, and engage millions of followers across platforms. However, with this power comes legal responsibility. In India, influencers are subject to certain regulations to ensure transparency, fairness, and accountability in their online activities, particularly when endorsing products or services.
Consumer Protection Act, 2019: Influencers are accountable under the Consumer Protection Act, which aims to protect consumers from unfair trade practices, including misleading advertising. If an influencer promotes a product or service in a way that misleads consumers, they can be held liable for causing harm or loss.
False Claims: If an influencer makes false or exaggerated claims about a product, they may be charged for deceptive practices under Section 2(47) of the Consumer Protection Act, 2019, which addresses misleading advertising and false representations.
Endorsement Liability: According to Section 2(9) of the Act, influencers can be penalized if their endorsement leads to consumer harm due to false claims or lack of adequate information about the product.
Guidelines from the Advertising Standards Council of India (ASCI): Influencers must disclose when their content is sponsored or part of a promotional partnership. The ASCI’s Influencer Guidelines (2021) require influencers to clearly state when content is paid or sponsored, ensuring transparency.
#Ad or #Sponsored: Influencers must use clear and conspicuous labels like #ad, #sponsored, or #promotion to inform their audience that the post is paid for by a brand. Failure to disclose sponsored content is considered a violation of advertising ethics and can lead to penalties.
Non-Disclosure Consequences: Influencers who fail to disclose sponsorship or promotional content can be subject to legal action by regulatory authorities like the Consumer Protection Authority or ASCI.
Defamation: Influencers who post content that defames others, including brands, individuals, or competitors, may be sued for defamation under Section 499 of the Indian Penal Code (IPC). If an influencer spreads false, damaging information, they can be held liable for reputational harm.
Cyber Laws: If influencers engage in cyberbullying, harassment, or any illegal online activity, they can be held accountable under the Information Technology Act, 2000. This includes spreading false information, hate speech, or promoting harmful or illegal activities.
Personal Data Protection Bill, 2019: Influencers who collect personal data (e.g., emails, contact numbers, or even behavioral data from followers) for giveaways or promotions must comply with the Personal Data Protection Bill. This includes obtaining user consent before collecting data and ensuring the data is securely stored and not misused.
Consent for Data Usage: Influencers must be cautious when collecting or sharing personal information of their followers. Failure to comply with data protection laws may lead to legal consequences.
Intellectual Property Rights: Influencers who use copyrighted material (such as music, images, or videos) in their posts without obtaining permission from the copyright holders can be sued for infringement. Influencers must ensure they have proper licenses or use royalty-free content to avoid violating copyright laws under the Copyright Act, 1957.
Influencers must ensure that all sponsored or promotional content is clearly marked. For example, if an influencer posts about a beauty product they were paid to endorse, they must disclose the sponsorship using hashtags like #ad or #sponsored to prevent misleading their audience.
Influencers are expected to provide accurate information about the products or services they endorse. For example, if they claim a product will help with weight loss, they must have credible evidence or not make exaggerated claims that cannot be substantiated. Misleading claims can lead to consumer complaints and legal actions.
Influencers should avoid promoting harmful, dangerous, or illegal products (e.g., unapproved medicines, scams, or counterfeit goods). Promoting such items could lead to legal consequences and damage their reputation.
Influencers must handle criticism or negative feedback with professionalism. They are liable if they engage in defamation or harassment against individuals or brands, whether in response to comments or messages.
Influencers should monitor and control the content they post and ensure it complies with all applicable regulations, including those related to offensive language, hate speech, or promoting illegal activities.
An influencer on Instagram promotes a weight-loss supplement in a sponsored post but fails to disclose that the post is paid for. The claims made about the product’s effectiveness are also exaggerated and not backed by scientific evidence. Consumers who buy the product based on this misleading post suffer health issues and seek legal redress. The influencer could face action under the Consumer Protection Act for misleading advertising and non-disclosure of sponsorship. Additionally, the influencer might also be sued by the affected individuals for defamation if the product's claims were particularly harmful.
Influencers in India must be aware of their legal responsibilities and ensure compliance with various regulations when creating content, endorsing products, or interacting with their audience. By being transparent, truthful, and ethical, influencers can avoid legal consequences while maintaining their credibility and trust with their followers.
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