Frequently Asked Questions

Find Out More

Centre Issues New Rules For Influencers, Up To ₹ 50 Lakh Fine If Not Followed

The Government of India has made it mandatory for social media influencers to disclose all "material" interest such as gifts, hotel accommodation, equity, discounts and awards when endorsing any products, services or scheme, failing which strict legal action, including ban on endorsements can be taken.

The disclosures should be in simple and clear language, should be of duration that is hard to miss, must be run with endorsements, including live streams and should be platform agnostic..

Which new law has been made applicable on Influencers?

The new guidelines named 'Endorsement Know Hows - for celebrities, influencers and virtual media influencers (Avatar or computer generated character) on social media platforms' has been issued by the Department of Consumers Affairs.

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

What are the fines and penalties for contravention of the new law?

The Central Consumer Protection Authority (CCPA) can impose penalty of up to ₹ 10 lakh on manufacturers, advertisers and endorsers.

For subsequent offences, penalty of up to ₹ 50 lakh can be imposed.

The CCPA can prohibit endorser of a misleading ad from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years