Center lays rules for social media celebs and influencers: Endorsements Know-Hows for Celebrities, Influencers and Virtual Influencers on Social Media Platforms
ENDORSEMENTS KNOW-HOWS FOR CELEBRITIES, INFLUENCERS AND VIRTUAL INFLUENCERS ON SOCIAL MEDIA PLATFORMS
- The Department of Consumer Affairs under Ministry of Consumer Affairs, Food and Public Distribution released a guideline on the subject matter on January 20, 2023 to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines.
- The “Endorsement Know-hows!” specify that disclosures must be prominently and clearly displayed in the endorsement, making them extremely hard to miss.
WHO SHOULD DISCLOSE???
Individuals/groups who have 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/celebrity ‘ s authority, knowledge, position, or relationship with their audience.
Celebrities – Famous personalities, including but not limited to entertainment or sports industry who have the power to affect the decisions or opinions of their audience.
Influencers – Creators who advertise products and services with a strong influence on the purchasing decisions or opinions of their audience.
Virtual Influencers – Fictional computer generated ‘people’ or avatars who have realistic characteristics, features and personalities of humans, and behave in a similar manner as influencers.
WHEN TO DISCLOSE??
When there is a material connection between an advertiser and celebrity/influencer that may affect the weight or credibility of the representation made by the celebrity/influencer
Material connection could include but is not limited to benefits and incentives, such as:
- Monetary or other compensation;
- Free products with or without any conditions attached,
- including those received unsolicited,
- discounts, gifts;
- Contest and sweepstakes entries;
- Trips or hotel stays; Media barters;
- Coverage and awards; or
- Any family, personal or employment relationship.
HOW TO DISCLOSE?
| HARD TO MISS | ENDORSEMENT IN A PICTURE | ENDORSEMENT IN A VIDEO | ENDORSEMENT IN A LIVE STREAM |
| Disclosures should be placed in the endorsement message in such a manner that they are clear, prominent and extremely hard to miss. | Disclosures should be superimposed over the image enough for viewers to notice
|
Disclosures should be placed in the video and not just in the description. | Disclosures should be displayed continuously and prominently during the entire stream. |
| Disclosures should not be mixed with a group of hashtags or links. | Disclosures should be made in both audio and video format | ||
| SIMPLE & CLEAR | TERMS ALLOWED | LANGUAGE | PLATFORM TOOL |
| Simple and clear language should be used. | ‘advertisement’ or ‘ad’ ‘sponsored’ ‘paid promotion’ or ‘paid’
|
Disclosures and endorsements should be in the same language.
|
Separate disclosures shall be made apart from platform disclosure tools
|
| On limited space platforms like Twitter, terms such as ‘XYZAmbassador’ (where XYZ is a brand) are also acceptable. |
DUE DILIGENCE:
Celebrities/influencers are advised always to review and satisfy themselves that the advertiser is in a position to substantiate the claims made in the advertisement. It is also recommended that the product and service must have been actually used or experienced by the endorser.
Failure to disclose any material connection or non-compliance of the Consumer Protection Act 2019 and Rules made thereunder would make such violators liable for strict action under the law.
An illustration: Engaging Celebrities or Influencers for endorsement by an eCommerce Entity
A prominent eCommerce entity reached out to celebrities and influencers to engage them to promote their products where the eCommerce entity asked them to wear clothes of certain brands and make content for online platforms.
The celebrities and influencers posted content online and most of them didn’t disclose their material connection with the eCommerce entity and it appeared as if the celebrities and influencers were promoting those brands without any bias.
In case celebrities and influencers don’t disclose their material connection, their opinion may be inferred as biased and/or misleading. However, if celebrities and influencers disclosed their material connection, the consumers will be able to make an informed decision.
WARNING!!
Failure to disclose any material connection or non compliance of the Consumer Protection Act 2019 and Rules made thereunder would make such violators liable for strict action under the law
Also Read: Centre releases endorsement guidelines for Celebs and Social Media Influencers
Author Bio
