Guidelines for social media influencers soon, up to Rs 50 lakh fine for violation

Social media influencers will soon have to declare their association with the product they endorse as the government will come out with certain guidelines for them in the coming days. "The Department of Consumer Affairs is coming out with guidelines on social media influencers. It is creating dos and don'ts for them," an official source said.

Sources said social media influencers, who have large followers on social media platforms like Instagram, are endorsing products after taking payments from the brands. As per the proposed guidelines, if social media influencers endorse any brand after taking money, they will have to declare their association with that brand, sources said.

The Central Consumer Protection Authority (CCPA), under the Department of Consumer Affairs, has completed consultation with all stakeholders concerned on the matter.

Social media influencers will need to put disclaimers in such endorsement posts, they added. The guidelines might come within the next 15 days.

- Disclaimer will have to be given for paid promotion
- Celebrities will also be included in the guidelines
- If not implemented, CCPA will take action 
- Rs 10 lakh fine for a first-time violation, Rs 20 lakh for a second time, then Rs 50 lakh fine for continuous violation

Meanwhile, the department has completed the process of developing a framework to curb fake reviews posted on e-commerce websites. In May, the department along with the Advertising Standards Council of India (ASCI) held a virtual meeting with stakeholders, including e-commerce entities, to discuss the magnitude of fake reviews on their platforms.

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Fake reviews mislead consumers into buying online products and services. The department had then decided it would develop these frameworks after studying the present mechanism being followed by e-commerce entities in India and best practices available globally.

Since e-commerce involves a virtual shopping experience without any opportunity to physically view or examine the product, consumers heavily rely on reviews posted on platforms to see the opinion and experiences of users who have already purchased the good or service.0

"Traceability by ensuring the authenticity of the reviewer and the associated liability of the platform are the two key issues here. Also e-commerce players must disclose as to how they choose the 'most relevant reviews' for display in a fair and transparent manner," Consumer Affairs Secretary Rohit Kumar Singh had said.

(With inputs from PTI)