69% of India’s top influencers violate disclosure guidelines: ASCI

More than two-thirds (69%) of India’s top 100 digital stars on social media are found to be violating influencer disclosure guidelines, according to the ‘Top Influencer Compliance Scorecard’ released by the Advertising Standards Council of India (ASCI).

ASCI found this in a study it carried out on India’s Top Digital Stars 2024 list published by Forbes India. Central Consumer Protection Authority (CCPA) along with ASCI mandate that online influencers make a prominent and hard-to-miss disclosure of material connections they have with the brands they promote.

ASCI analysed brand-promotion posts by influencers featuring in the Forbes India list across Instagram and YouTube between September and November 2024. With a combined reach of more than 11 crore followers, 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, ASCI mentions.

Calling for urgent action from advertisers, agencies, and influencers to align with compliance requirements to avoid regulatory consequences, ASCI points out that the CCPA guidelines specifically mention that failure to disclose material connection in the manner prescribed can invite strict penalties under Indian laws.

The report highlights that of the 100 posts ASCI scrutinised, 29% carried adequate disclosures; 2% cases were dismissed as influencers were able to provide evidence of no material connection. However, in 69% of cases, non-disclosure violations were confirmed. Among these, 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 the ASCI and CCPA guidelines mandate.

Upon reaching out to them, in 59 out of the 69 cases, the non-compliant influencers agreed to correct their posts without contest. Four cases agreed to correct after jury recommendations, and five (7%) cases were escalated to the Ministry of Information & Broadcasting (MIB) for non-compliance. In one case, compliance confirmation is awaited.

Among sectors, fashion and lifestyle (27.5%), telecom products (21.7%), and personal care (13%) emerged as the top three violators, accounting for 62% of the total violations. Overall, 93% of investigated influencers complied with ASCI recommendations after its intervention.

Expressing concern over even top influencers displaying a disappointingly low rate of adherence to the principles of transparency and audience trust, Manisha Kapoor, CEO and secretary-general, ASCI, urged agencies, influencers, and brands to take note and do course-correction on urgency-basis. Kapoor advised brands working with influencers to carefully select only those who respect the law and their audiences. She also advised that influencers who value their reputations also need to push back against brands that ask them to flout the law.

“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. We hope this report serves as a wake-up call for influencers, talent agencies, and brands.”

The ASCI report has also provided resources to help influencers and brands get better acquainted with disclosure guidelines and laws to maintain ethical advertising practices. These include ‘ASCI Guidelines for Social Media Influencers’, ‘DOs and Don’ts for Influencers and Brands’, ‘Disclosure Tool for Influencers and Brands’, and ‘CCPA Guidelines: Endorsement Know-hows’.

Recently ASCI released an advisory asking influencers on the LinkedIn platform to ensure adherence to its guidelines and the law. The agency has examined more than 6,000 cases since its launch of the influencer guidelines in 2021.