ASCI Intensifies Scrutiny Of Influencer Ads
ASCI plans to prioritise monitoring influencer activities over the next two quarters
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The Advertising Standards Council of India (ASCI) has intensified its efforts to address widespread non-compliance by social media influencers with its guidelines. The self-regulatory body plans to prioritise monitoring influencer activities over the next two quarters.
Manisha Kapoor, Secretary General and CEO, ASCI said, “We have not received complaints against ads of influencers promoting crypto products in the recent past. Influencer activities will be in focus for our next two quarters for suo motu surveillance.”
“To ensure a safe digital environment for consumers, it is important for influencers to be aware of their responsibilities and ensure they adhere to the requirements mandated by ASCI and the government”, she added.
As per ASCI guidelines, all advertisements related to virtual digital assets issued on or after 1 April 2022 are required to include a disclaimer stating that cryptocurrency products and NFTs are unregulated, carry high risks and may not offer regulatory recourse for losses. This disclaimer must be displayed across print, video and audio promotions.
However, ASCI revealed that more than 400 cryptocurrency advertisements featuring influencers breached these guidelines in 2022.
In January 2023, the Central Government mandated that social media influencers must disclose any 'material' interests such as gifts, hotel stays, equity stakes, discounts or awards when endorsing products, services or schemes. Non-compliance could result in strict legal actions, including a ban on endorsements.
Violations are subject to penalties under the Consumer Protection Act 2019. The Central Consumer Protection Authority (CCPA) may impose fines of up to Rs 10 lakh on manufacturers, advertisers and endorsers for misleading advertisements, with subsequent offences attracting penalties of up to Rs 50 lakh.
Additionally, the CCPA can bar endorsers of misleading ads from making endorsements for up to one year, with repeated violations leading to a prohibition of up to three years.
