NEW DELHI: Social media influencers to disclose “material” interest such as gifts, hotel accommodation, equity, discounts and awards when endorsing any products, services or scheme- as per a notice issued by the Union govt on Friday.
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- the notice stated.
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. A 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. The CCPA can further 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.