Mumbai: The Advertising Standards Council of India (ASCI) has released its Top Influencer Compliance Scorecard, revealing that a staggering 69% of India’s Top 100 Digital Stars failed to adhere to social media influencer guidelines. This non-compliance raises concerns about advertising transparency and regulatory violations.
According to ASCI, prominent and clear disclosures are mandatory in cases where influencers have a material connection with brands. These disclosures are not just required under ASCI’s Guidelines for Influencer Advertising in Digital Media but are also mandated by the Central Consumer Protection Authority (CCPA). Failure to comply can result in strict penalties under Indian consumer protection laws.
Study Findings: Gaps in Advertising Transparency
The ASCI study analyzed brand-promotion posts by influencers featured in Forbes India’s Top 100 Digital Stars 2024 across Instagram and YouTube between September and November 2024. These influencers, with a combined reach of over 110 million, are industry trendsetters and role models. However, the findings highlight widespread violations in adherence to disclosure norms.
Key Findings of the Report:
- Out of 100 scrutinized posts, only 29% carried adequate disclosures.
- 2% of cases were dismissed after influencers provided proof of no material connection.
- In 69% of cases, non-disclosure violations were confirmed.
- 56.8% of violations were due to the absence of proper disclosure labels.
- 43.2% of violations occurred because disclosures were buried in hashtags rather than being clearly visible.
Regulatory Actions and Industry Response
Among the 69 cases of non-compliance:
- 59 influencers corrected their posts after intervention.
- 4 cases were resolved following jury recommendations.
- 5 cases (7%) were escalated to the Ministry of Information & Broadcasting (MIB) for further action.
- 1 case is still awaiting compliance confirmation.
Top Sectors Violating ASCI Guidelines:
The highest violations were recorded in the following sectors:
- Fashion & Lifestyle – 27.5%
- Telecom Products – 21.7%
- Personal Care – 13%
These three sectors alone accounted for 62% of the violations, indicating a pattern of repeated non-compliance in influencer campaigns.
Urgent Need for Compliance in Influencer Marketing
ASCI’s report calls for immediate corrective measures from advertisers, agencies, and influencers to ensure transparency and regulatory adherence. Influencers play a critical role in shaping consumer perceptions, and failure to comply with advertising guidelines not only misleads consumers but also invites legal action.
Encouragingly, 93% of investigated influencers complied with ASCI’s recommendations after intervention. However, the report underscores the need for stricter enforcement and continuous monitoring to ensure ethical influencer marketing practices in India.
With growing scrutiny from consumer protection agencies, it is imperative for brands and influencers to prioritize ethical advertising, ensuring full disclosure of promotional content to maintain consumer trust and regulatory compliance.
Manisha Kapoor, CEO & Secretary-General, ASCI, said, “The results of our exercise show that even top influencers have a disappointing rate of adherence to the principles of transparency and audience trust. There is an urgent need for agencies, influencers, and brands to take note of this and course-correct. With influencer advertising attracting mainstream advertising budgets, it is concerning to note the failure of this ecosystem to get its act together in building a mindset of responsibility and compliance. Brands working with influencers should be careful to select those who respect the law and their audiences. Likewise, influencers who value their own reputations need to push back against brands that ask them to flout the law. We hope this report serves as a wake-up call for influencers, talent agencies, and brands.”
The report also lists resources that can help influencers get better acquainted with the guidelines and laws to maintain ethical advertising practices.
ASCI has been working extensively in the area of influencer advertising and has processed over 6000 cases since the launch of its influencer guidelines in 2021. ASCI recently released an advisory asking influencers on the LinkedIn platform to ensure adherence to its guidelines and the law.
