Product promotions: Govt makes it mandatory for social media influencers to disclose material interest

News Network
January 20, 2023

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New Delhi, Jan 20: The government on Friday made it mandatory for social media influencers to disclose their "material" interest in endorsing products and services and violations can attract strict legal action, including ban on endorsements. The regulations are part of continuing efforts to curb misleading advertisements as well protect the interests of consumers amid the expanding social influencer market which is projected to be worth around Rs 2,800 crore by 2025.

The new guidelines named 'Endorsement Know Hows -- for celebrities, influencers and virtual media influencers (Avatar or computer generated character) on social media platforms' has been issued by the Department of Consumers Affairs.

In case of violation, the penalty prescribed for misleading advertisement under the Consumer Protection Act 2019 will be applicable.

The Central Consumer Protection Authority (CCPA) can impose penalty of up to Rs 10 lakh on manufacturers, advertisers and endorsers. For subsequent offences, penalty of up to Rs 50 lakh can be imposed. The authority can prohibit endorser of a misleading ad from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.

Launching these guidelines at a press conference, Consumer Affairs Secretary Rohit Kumar Singh said the guidelines have been issued under the ambit of the consumer law that provides framework for the protection of consumers against unfair trade practices and misleading advertisements.

He hoped that the guidelines would act as a deterrent for social media influencers.

"It's a very important subject. The size of social influencer market in India in 2022 was of the order of Rs 1,275 crore and by 2025, it is likely to rise to Rs 2,800 crore with a compound annual growth rate of about 19-20 per cent. The social media influencer of substance, those having good number of followers, are in excess of 1 lakh in the country," Singh said.

Stating that the social media influencing is here to stay and will only grow exponentially, he said social influencers need to behave responsibly.

"The today's guidelines are aimed at social media influencers which have material connection with the brand they want to promote on various social media platforms. This is an obligation for them to behave responsibly as far as the disclosure is concerned to the consumers.

"One of the biggest paradigm of the consumer law is the consumers right to know and this falls in that purview. Consumers should know if something is thrown at him from digital media, the person or the entity which is sponsoring it have they taken money or any form of connection they have with the brand," Singh said.

The secretary said if non-compliance takes place, there are provisions under the law for people to approach the authority to seek legal action against people who are defaulting.

"These guidelines broadly define that framework as to how social media influencers should indulge in disclosure of their relationship with the brand," the secretary said.

CCPA Chief Commissioner Nidhi Khare noted that misleading Advertisements in any form, format or medium is prohibited by law.

The new guidelines have specified who all need to disclose, when to disclose and how to 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 will have to disclose the material connection, as per the new norm.

The disclosure should happen "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", Khare said.

She said the disclosure should be in such a manner that it is "hard to miss" and should be in simple language.

The disclosures should be placed in the endorsement message in such a manner that they are clear, prominent and extremely hard to miss. Disclosures should not be mixed with a group of hashtags or links.

In endorsement in a picture, disclosures should be superimposed over the image enough for viewers to notice. In video, disclosures should be placed in the video and not just in the description and they should be made in both audio and video format.

In the case of live stream, disclosures should be displayed continuously and prominently during the entire stream.

On limited space platforms like Twitter, terms such as 'XYZAmbassador' (where XYZ is a brand) are also acceptable, she said.

The secretary said that these guidelines are being issued under the overall ambit of Consumer Protection Act and one of the main underlining principle of the law is prevention of unfair trade practice.

"There are many ways in which unfair trading practices take place, one of the important unfair trading practice is the menace of misleading advertisements, by trying to sell something which is not exactly as it is being portrayed in the ad.

"While it has been ably handled in the conventional media -- which is TV, print and radio, the social and digital media platforms are turning out to be different ball game," Singh said. 

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News Network
May 18,2024

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In a fresh claim, arrested BJP leader and advocate G Devaraje Gowda has alleged that Deputy Chief Minister D K Shivakumar and four other ministers were behind exposing Prajwal Revanna’s sex scam that has brought disgrace to Janata Dal (Secular) H D Deve Gowda family. 

Devaraje Gowda has been arrested in a sexual abuse case. 

Speaking to reporters while being taken to the district prisons, in Hassan on Friday, Gowda alleged that he was offered Rs 100 crore to drag the name of H D Kumaraswamy in the Prajwal’s case. 

“D K Shivakumar had offered me Rs 100 crore to project that H D Kumaraswamy was behind the case. The offer was made through ministers N Chaluvarayaswamy, Krishna Byre Gowda, Priyank Kharge and another minister. They had even sent Rs 5 crore as advance to Bowring Club. But I did not agree. Hence, they hatched a plot to trap me,” Gowda alleged.

“It is D K Shivakumar, who collected all information from Prajwal Revanna’s former car driver Karthik and readied the pen drive. A team of four ministers were formed to handle the issue. As I did not agree to the plan. They planned to bring disrepute to the BJP, Narendra Modi and H D Kumaraswamy,” he said.

Gowda further alleged that former MLC M A Gopalaswamy of Channarayapatna was sent to him for negotiation.

“The main intention of D K Shivakumar is to bring disrepute to Modi and BJP in the case. Besides, he wanted to defame H D Kumaraswamy’s leadership in the state” he claimed. “They filed a sexual harassment and rape case against me, but found no evidence. Now, they are trying to fix me in the pen drive case” he alleged.

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News Network
May 12,2024

Mangaluru, May 12: In a shocking development, a group of pilgrims which had travelled from Mangaluru International Airport to Saudi Arabia earlier this month, to perform Umrah has alleged that 26,432 Saudi Riyals, which were kept in a bag, have been stolen. 

In a complaint submitted to the Bajpe Police, Soukath Banu, wife of Ahmed Iqbal of Ajyad Tours and Travels, said that her husband, Ahmed Iqbal, along with 35 members, planned and scheduled to perform the Umrah and were travelling from Mangaluru International Airport (MIA) via Mumbai to Jeddah. 

Soukath Banu had given Ahmed Iqbal 2,000 Saudi Riyals for performing Umrah and other expenses. The group members were also told to bring Saudi Riyals to meet their expenses.

In her plaint, Soukath stated that the group had left for Jeddah on an IndiGo flight via Mumbai, and their return ticket to India was booked for May 13. 

At the airport, she said that 26,432 Saudi Riyals were collected in total, and they decided to keep them in baggage that had a lock. Accordingly, it was kept in the bag of Mohammad Badruddin Kadambar. The airport staff had even questioned what he had kept in the bag. 

The group reached Jeddah on May 1. To their surprise, Kadambar found that the baggage lock was broken open, the zip was damaged, and cash was stolen upon reaching Jeddah.

DCP (Law and Order) Sidharth Goyal said that following the complaint, one round of CCTV checks was conducted at the MIA along with the CISF personnel. The loading at the MIA was intact.

Further checks have to be carried out at Mumbai and Jeddah Airport as the victim found out that cash was missing only when they got the bag at the final destination, he added.

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News Network
May 11,2024

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Karnataka: BJP leader and advocate G Devaraje Gowda was arrested in connection with a sex abuse video allegedly belonging to Hassan JD(S) MP Prajwal Revanna.

According to police, Devaraje Gowda was arrested at Gulihal tollgate by the Hiriyur police in this district on Friday night for leaking the video in a pen drive.

He was arrested on a tip-off received by the Hassan police, which wanted his presence for the case.

Several explicit videos involving Prajwal started making the rounds ahead of the first phase of Lok Sabha elections in Karnataka, which took place on April 26.

The MP, a grandson of former prime minister H D Deve Gowda, is absconding and a 'blue corner' notice has been issued against him by Interpol.

Three FIRs, including charges of rape, molestation, intimidation, blackmailing and threatening, have been registered against Prajwal.

Devaraje Gowda is accused of leaking these videos, which he has categorically rejected.

He contested in the 2023 Assembly elections against JD(S) MLA from Holenarasipura H D Revanna.

H D Revanna, father of Prajwal, is at present in jail on charges of kidnapping a woman, a mother of three.

Ahead of polls, Devaraje Gowda had warned BJP’s central leadership against backing Prajwal Revanna and brought his sex scandal to light.

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