Over two-thirds of India’s top digital stars flout influencer disclosure guidelines: ASCI

The Advertising Standards Council of India (ASCI) released the Top Influencer Compliance Scorecard, revealing that 69% of India’s Top 100 Digital Stars failed to meet guidelines for influencers on social media. Prominent and hard-to-miss disclosures are mandated in the case of any material connection, not only as per ASCI’s Guidelines for Influencers Advertising in Digital Media but also the Central Consumer Protection Authority’s (CCPA) Guidelines.

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 — Manisha Kapoor, CEO & Secretary-General, ASCI

The study analyzed brand-promotion posts by influencers featuring in Forbes India’s Top 100 Digital Stars 2024 across Instagram and YouTube between September and November 2024. With a combined reach of over 110 million, these influencers set industry trends and are role models for other influencers. However, the findings highlight worrying gaps in advertising transparency, raising concerns about the non-compliant practices in influencer campaigns.

The results call for urgent action from advertisers, agencies, and influencers to align with compliance requirements in order to avoid regulatory consequences. It is worth noting that the CCPA guidelines specifically mention that failure to disclose material connection in the manner prescribed can invite strict penalties under the law.

Key Highlights of the Report:

• Of the 100 posts scrutinised, 29% carried adequate disclosures; 2% cases were dismissed as influencers were able to provide evidence of no material connection. In 69% of cases, non-disclosure violations were confirmed.
• 56.8% of the violations pertained to absence of the disclosure label, and 43.2% cases pertained to disclosures being buried in hashtags and not being prominently displayed as required by ASCI and CCPA guidelines.
• In 59 out of the 69 cases, non-compliant influencers agreed to correct their posts without contest, 4 cases agreed to correct after jury recommendations, and 5 (7%) cases were escalated to the Ministry of Information & Broadcasting (MIB) for non-compliance. In one case, compliance confirmation is awaited.
• Fashion & Lifestyle (27.5%), Telecom Products (21.7%), and Personal Care (13%) sectors emerged as the top three violators and accounted for 62% of the violations
• Overall, 93% of investigated influencers complied with ASCI recommendations after intervention.

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.

Disclaimer: This article is based on a press release and has been published with minimal modifications for clarity and formatting.