INFLUENCER MARKETING

MARQUES 2021
INFLUENCER
MARKETING IN INDIA
Influencer Marketing in India: An Overview

Influencer
(As defined by ASCI -The Advertising Standard Council of India)

“Someone who has access to an audience and the power to affect their audiences’ purchasing decisions or
opinions about a product, service, brand or experience, because of the influencer’s authority, knowledge, position,
or relationship with their audience.”
Social Media Platforms: Popularity Vs. Usage for Influencer Marketing

Most Used Social Media Platforms in

India
GENERAL
REGULATIONS
General Regulations Around Influencer Marketing
Consumer Protection Act, 2019, Allied Rules & Guidelines
ASCI: An overview

•ASCI Guidelines made effective from 14 June, 2021

•Applicable on Digital Media Content

•Material Connection must between an advertiser and influencer

•Any person/agency could lodge a complaint with ASCI

•ASCI appointed a French Tech Provider (REECH) to identify ads violating the Guidelines

•ASCI takes suo-moto action

ASCI: The Guidelines
 Disclosure:

 All Advertisements must carry a permitted disclosure label that

identifies it as an advertisement.

 Disclosure must be upfront and prominent & in a manner that is

well understood by an average consumer

 The Disclosure should be in English or the language of the

advertisement.

 Any Material connection between the advertiser and the

influencer must be disclosed

 Responsibility of disclosure also lies on the advertiser & the

influencer

 Due diligence: Influencers are advised to carry out a due diligence to substantiate the claims made by the
advertisers, if any.
Prohibited/Regulated sectors

Human Organs [Transplantation of Human Organs Act, 1994]

Certain drugs and magical remedies [Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954]

Prenatal determination of Sex [Pre-Natal Diagnostic Techniques (Regulation and prevention of Misuse) Act,
1994

Physicians [Indian Medical Council (Professional conduct, Etiquette and Ethics) Regulations, 2002

Legal Services [Bar Council of India Rules, 1957 / Advocates Act, 1961]
Prohibited/Regulated sectors

In addition to the prohibited activities (such as Tobacco, Liquor, Human Organs, Legal Services, Physicians etc.),
no advertisement shall be permitted which is:

likely to incite people to commit crime and promote disorder, violence or intolerance

derides or depicts in an unfavorable manner, people of any race, caste, creed, sex, gender or nationality

affects foreign relations with any other country

encourages or propagates the use of a product banned under any law

shows or glorifies a dangerous practice of encourages negligent behaviour

ENFORCEMENT
Recent Case Laws

ASCI: PreEmptive Meds Pvt. Ltd (PreVID) ASCI: Sohini Chanda (Influencer) Eureka Cosmo Pvt Ltd

Influencer was reported for posting a misleading Influencer posted content promoting a brand of cosmetics.
advertisement.
Influencer responded that she purchased the products,
CCC found that the advertisement violated ASCI Guidelines and held that it was not an advertisement.

Upheld the complaint Did not uphold the complaint

Recent development
ASCI: Jannat Zubair Rahmani (Influencer) The Chikan Label
Influencer posted content that without a disclosure label
CCC found that the advertisement contravened ASCI Guidelines
Upheld the complaint
ASCI: Amyra Dastur (Influencer) Xiaomi Technology
•Influencer posted content promoting a smartphone without a
disclosure label
•CCC held that platform’s promotion tools were only supplementary
to the influencer’s disclosure labels, and that the ad contravened
ASCI Code and ASCI Guidelines.
•Upheld the complaint
BEST PRACTICES
Best practices

Brands Influencers

Ensure statutory compliance & Self Regulation. Ensure statutory compliance & Self Regulation.

Ensure all claims made in the advertisement by the Ensure claims made are honest and verifiable.
Influencers are honest and are verifiable.

Ensure a clear and transparent agreement with the Ensure a formal agreement is in place before
Influencer. associating with brands.

Ensure that third party IP, like music/images are not Negotiate indemnification clauses for claims made.
infringed.

Ensure compliance with the platform’s terms of use. Ensure compliance with the platform’s terms of use.