Author: Krisha Shah, Law Graduate from Jitendra Chauhan College of Law
To the Point
Influencer marketing has become a major part of brand promotion in India, especially on platforms like Instagram, YouTube, and Twitter. While this strategy is effective, it has also raised legal concerns due to a rise in misleading advertisements, where influencers promote products without proper disclosure or exaggerate their benefits.
To address this, the CCPA issued guidelines in January 2023, requiring influencers to clearly mention paid promotions. The Consumer Protection Act, 2019 and ASCI’s advertising rules also aim to ensure transparency and protect consumers.
However, enforcement remains a challenge due to the online and cross-border nature of influencer content. Stronger awareness and stricter regulation are needed to keep digital advertising fair and trustworthy.
Use of Legal Jargon
1. Misleading Advertisement
Section 2(28) of CPA Act, 2019 – An advertisement that gives false or incomplete information, leading consumers to form a wrong belief about a product or service.
2. Material Connection
Any connection between the influencer and the brand (like payment, free gifts, or partnership) which may affect how the endorsement is viewed by the audience. It must be clearly disclosed under the CCPA Guidelines.
3. Disclosure Label
Hashtags or terms like #Ad, #Sponsored, or Paid Partnership that influencers must use to inform their audience about a paid promotion.
4. Endorser Liability
Legal responsibility placed on influencers or celebrities for promoting a product that turns out to be harmful, unverified, or falsely advertised.
5. Due Diligence
The duty of an influencer to verify the truth of any claim made in an advertisement before promoting it. They cannot blindly trust the brand.
6. Unfair Trade Practice
Any deceptive or dishonest method used to promote or sell goods or services, including non-disclosure of paid promotions or spreading false claims.
7. Consumer Protection Authority (CCPA)
A regulatory body formed under the Consumer Protection Act, 2019 that can issue guidelines, take action against misleading advertisements, and penalize violators.
8. Advertising Standards Council of India (ASCI)
A self-regulatory body that monitors advertising content in India and issues codes and guidelines to ensure truthful and responsible advertising.
9. Surrogate Advertisement
A type of indirect advertising where a product that cannot be legally promoted (like alcohol or tobacco) is advertised under the name of another product (like soda or music CDs), often using celebrities or influencers.
10. Intermediary Liability
The extent to which social media platforms like Instagram or YouTube are responsible for hosting misleading or harmful influencer content. Covered under the IT Rules, 2021.
The Proof
A. Legal Frameworks
To protect consumers from being misled by social media promotions, India has taken several legal and regulatory steps in recent years. These are the key legal frameworks and authorities involved in regulating influencer marketing:
I. Consumer Protection Act, 2019
This Act defines a misleading advertisement under Section 2(28) as any advertisement that gives a false description or hides important information, causing the consumer to make a wrong choice. It also gives power to authorities to take action against such practices, including:
i. Fines up to ₹10 lakhs for the first offence (Section 21),
ii. Even higher penalties or a ban on endorsements for repeat violations.
II. CCPA Guidelines for Prevention of Misleading Advertisements (January 2023)
These guidelines are specifically made for influencers, celebrities, and advertisers. Key points include:
i. Influencers must clearly disclose any material connection (like payment, gifts, sponsorships) using simple and visible tags such as #Ad, #Sponsored, or Paid Partnership.
ii. ii.Disclosures must not be hidden in the description, buried in hashtags, or placed where users may miss them.
iii. Influencers are equally accountable, not just the brands they promote.
iv. Influencers must perform due diligence—they should verify the product’s claims before endorsing it.
III. Advertising Standards Council of India (ASCI) Code
ASCI is a self-regulatory body for advertisements. In 2021, it issued Guidelines for Influencer Advertising in Digital Media, requiring:
i. Clear disclosure labels,
ii. Honest representation of personal experience,
iii. Separate rules for advertisements targeting children.
ASCI regularly flags and removes ads that violate these guidelines. It collaborates with the CCPA and social media platforms to ensure rules are followed.
IV. Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021
These rules require platforms like Instagram, Facebook, and YouTube to ensure that content, including paid advertisements, follows Indian laws. While they don’t directly control influencer ads, they help in taking down illegal or harmful posts quickly.
B. Real-World Examples
1. Crypto Promotions Without Disclaimers (2022)
Several Indian influencers endorsed cryptocurrency platforms without adding required disclaimers about the risks involved. In response, the Advertising Standards Council of India (ASCI) issued a public advisory, stating that all crypto-related promotions must carry a clear risk warning.
2. Misleading Endorsements of Health Products
Celebrities and social media influencers promoted slimming teas, skin-whitening creams, and dietary supplements with exaggerated claims and no medical proof. ASCI reviewed these endorsements and classified them as misleading advertisements. Many such ads were taken down for violating its influencer guidelines.
3. Promotion of Children’s Products Without Disclosure
Some influencers promoted toys and ed-tech platforms (such as online learning apps) without revealing their paid partnership with the brands. The Central Consumer Protection Authority (CCPA) took action, stating that failure to disclose such connections amounts to an unfair trade practice under the Consumer Protection Act, 2019.
Abstract
Influencers now play a significant role in online advertising. While their promotions help brands grow, undisclosed or misleading endorsements can misguide consumers.
To tackle this, authorities like the Central Consumer Protection Authority (CCPA) and Advertising Standards Council of India (ASCI) have introduced rules requiring influencers to disclose paid partnerships, avoid false claims, and act responsibly.
This article looks at India’s legal approach to influencer marketing, with key laws, real-world violations, and suggestions for better enforcement. It highlights the need for stronger awareness and effective regulation in the online space.
Case Laws
1. Central Consumer Protection Authority (CCPA) v. Influencers & Celebrities [CCPA Enforcement Action, 2023–2024, Official Press Releases, MCA, GOI, January 2023]
Facts:
In 2023, the Central Consumer Protection Authority (CCPA) issued multiple notices and penalties to social media influencers and celebrities for failing to disclose paid partnerships while promoting products like cryptocurrency exchanges, online gaming apps, and real estate projects. These endorsements were found to be in violation of the CCPA Guidelines for Prevention of Misleading Advertisements and Endorsements, 2023.
Legal Issue:
Whether an influencer can be held liable for not disclosing a material connection with a brand, thereby misleading the consumer.
Held:
The CCPA held that non-disclosure of paid partnerships constitutes an “unfair trade practice” under the Consumer Protection Act, 2019. Fines were imposed, and repeat offenders were warned of bans from future endorsements.
2. Reckitt Benckiser (India) Ltd. v. Hindustan Unilever Ltd.
(2019) 78 PTC 319 (Del HC)
Facts:
This case involved a comparative ad where HUL’s Lifebuoy soap campaign indirectly portrayed Reckitt’s Dettol as ineffective. Reckitt claimed the ad was misleading and damaging.
Legal Issue:
Whether comparative advertising that indirectly mocks a competitor’s product without factual basis amounts to a misleading advertisement.
Held:
The Delhi High Court ruled in favour of Reckitt, stating that advertisements must be honest, evidence-based, and not unfairly disparage competitors. Misrepresentation, even by implication, was held to be misleading.
Relevance:
The reasoning applies equally to influencer content — especially when influencers endorse a product while indirectly misleading viewers about competitors or exaggerating benefits.
3. PepsiCo India Holdings Pvt. Ltd. v. Hindustan Coca-Cola Ltd.
(2003) 27 PTC 305 (Del HC)
Facts:
PepsiCo sued Coca-Cola for airing ads that portrayed its drink in a poor light using misleading comparison.
Legal Issue:
Whether puffery and indirect comparison could be construed as misleading under Indian advertising law.
Held:
The Delhi High Court held that while some exaggeration is permitted in ads, misleading consumers through half-truths or omissions is not protected, especially when the message affects consumer decision-making.
Relevance:
Influencers frequently engage in publicity and false claims. The principles laid down then extend to them under the 2019 Act and CCPA Guidelines.
4. ASCI v. Patanjali Ayurved Ltd. – ASCI Order No. 13/2020
Facts:
Patanjali aired TV and online ads claiming certain ayurvedic products could treat specific health conditions. Due to the absence of supporting evidence, the claims were identified by ASCI as misleading.
Held:
ASCI directed the ads be taken down and instructed that no advertisement claiming health benefits be aired without scientific backing.
Relevance:
This case represents administrative enforcement against misleading ads by a self-regulatory body. The same standards now apply to influencer content under ASCI’s 2021 Digital Media Guidelines.
5. Tata Press Ltd. v. Mahanagar Telephone Nigam Ltd.
(1995) 5 SCC 139
Facts:
Tata Press Ltd. published a telephone directory — a printed book that listed contact details of people and businesses, along with paid advertisements from service providers (like electricians, doctors, plumbers, etc.).
MTNL, a government telecom company, objected to Tata Press’s directory. They claimed that the ads in it were purely commercial and did not deserve constitutional protection under Article 19(1)(a), which guarantees the right to freedom of speech and expression.
Tata Press argued that the directory was not just commercial, but also informational — helping people find services. So, it should be protected as a form of speech.
Held:
The Supreme Court of India ruled in favour of Tata Press and made several important observations:
i. Speech under Article 19(1)(a) is not limited to spoken words — it includes written, printed, and visual expression.
ii. Therefore, even commercial advertisements — such as those printed in telephone directories — are a form of “speech”.
iii. Citizens have the right to receive information about products and services that help them make informed choices.
iv. However, this protection is not absolute. The State can regulate or ban advertisements that:
l Are misleading or false,
l Harm public interest, or
l Violate consumer rights.
Relevance to Influencer Marketing:
This case laid the foundation for recognising advertisements as protected speech — but only if they are truthful and fair.
In today’s digital world:
i. Like the ads in printed directories, influencer posts (videos, reels, reviews) are also expressions meant to inform or persuade.
ii. However, if an influencer misleads the public, hides sponsorships, or exaggerates product benefits, such content can be regulated just like traditional ads.
iii. Influencer promotions are protected as “speech,” but freedom ends where deception begins.
Conclusion
Influencer marketing plays a major role in shaping consumer choices in the digital age. But when promotions are misleading or undisclosed, they raise serious concerns under consumer protection law.
To address this, authorities like the CCPA and ASCI have issued clear guidelines requiring influencers to be transparent and truthful in their endorsements. While regulations exist, enforcement remains challenging, especially across global digital platforms.
Moving forward, a combination of stricter monitoring, brand accountability, and public awareness will be essential. As the law adapts to new-age advertising, influencers must also evolve — not just with trends, but with legal responsibility.
FAQS
Q1. What is a misleading advertisement in influencer marketing?
A misleading advertisement is one that gives false, incomplete, or exaggerated information about a product or service. For example, if an influencer promotes a health supplement as “100% safe and side-effect-free” without any scientific proof, it misleads the public. This becomes more serious if the influencer does not disclose that they were paid to endorse the product.
Q2. Are influencers liable under the law for endorsing products or services?
Yes. Under the Consumer Protection Act, 2019, influencers can be held personally liable for endorsing products with false claims or for not disclosing their paid association. The law expects influencers to do due diligence and avoid promoting products that are unverified or risky.
Q3. What should be clearly stated in paid or sponsored posts?
Influencers must clearly mention if their post is paid, sponsored, or in partnership with a brand. This must be done using prominent disclosure labels such as #Ad, #Sponsored, or Paid Partnership, placed in a way that viewers cannot miss them — not hidden in the middle or end of the post.
Q4. Who regulates influencer marketing in India?
Influencer marketing is mainly regulated by the Central Consumer Protection Authority (CCPA), Advertising Standards Council of India (ASCI), and the Ministry of Consumer Affairs (MCA), each with a different role.
Q5. What is the role of the Central Consumer Protection Authority (CCPA)?
The CCPA, established under the Consumer Protection Act, 2019, is a statutory body empowered to:
i. Protect consumers from unfair trade practices and misleading ads
ii. Issue guidelines for influencers and celebrities
iii. Conduct investigations and impose penalties
iv. In 2023, the CCPA issued detailed guidelines for influencers and took real action against violators, making it a key player in regulating online endorsements.
Q6. What does the Advertising Standards Council of India (ASCI) do?
The ASCI is a self-regulatory body that monitors advertising content across print, TV, and digital platforms. It has issued Influencer Guidelines (2021) which require:
i. Honest disclosures
ii. Proof for product claims
iii. Advertising must not be aimed at children or people who are more likely to be influenced by unverified claims.
ASCI also plays an active role in maintaining advertising standards by collaborating with brands and content creators, and it holds the authority to recommend the withdrawal of content that fails to meet its code.
Q7. What is the role of the Ministry of Consumer Affairs (MCA)?
The Ministry of Consumer Affairs is the central authority responsible for policy-making and awareness related to consumer rights. It:
i. Supports the enforcement of the Consumer Protection Act
ii. Launches public awareness campaigns (like “Be Alert, Be Safe”)
iii. Publishes press releases, advisories, and compliance deadlines for digital influencers
iv. It works in coordination with the CCPA to implement legal reforms.
Q8. What are the penalties for influencers who don’t follow these rules?
Penalties may include:
i. Financial penalties starting from ₹10 lakhs, with higher amounts applicable in cases of continued non-compliance
ii. Bans on endorsements
iii. Public notices and legal proceedings
The CCPA Guidelines, 2023 give regulators the authority to take strict action if influencers break the rules.
Q9. Can foreign influencers also be penalised under Indian law?
While Indian law cannot directly punish foreign nationals, if the product is marketed to Indian consumers, the platform or brand involved may be held accountable. In serious cases, the Indian government can request action through cross-border regulatory channels.
Q10. What is the responsibility of brands who hire influencers?
Brands must ensure that influencers:
i. Disclose paid collaborations
ii. Do not make false or unverified claims
iii. Follow ASCI and CCPA rules
If the influencer fails to comply, the brand may also be held liable for misleading advertising.
Influencer marketing plays a major role in shaping consumer choices in the digital age. But when promotions are misleading or undisclosed, they raise serious concerns under consumer protection law.
To address this, authorities like the CCPA and ASCI have issued clear guidelines requiring influencers to be transparent and truthful in their endorsements. While regulations exist, enforcement remains challenging, especially across global digital platforms.
Moving forward, a combination of stricter monitoring, brand accountability, and public awareness will be essential. As the law adapts to new-age advertising, influencers must also evolve — not just with trends, but with legal responsibility.
FAQS
Q1. What is a misleading advertisement in influencer marketing?
A misleading advertisement is one that gives false, incomplete, or exaggerated information about a product or service. For example, if an influencer promotes a health supplement as “100% safe and side-effect-free” without any scientific proof, it misleads the public. This becomes more serious if the influencer does not disclose that they were paid to endorse the product.
Q2. Are influencers liable under the law for endorsing products or services?
Yes. Under the Consumer Protection Act, 2019, influencers can be held personally liable for endorsing products with false claims or for not disclosing their paid association. The law expects influencers to do due diligence and avoid promoting products that are unverified or risky.
Q3. What should be clearly stated in paid or sponsored posts?
Influencers must clearly mention if their post is paid, sponsored, or in partnership with a brand. This must be done using prominent disclosure labels such as #Ad, #Sponsored, or Paid Partnership, placed in a way that viewers cannot miss them — not hidden in the middle or end of the post.
Q4. Who regulates influencer marketing in India?
Influencer marketing is mainly regulated by the Central Consumer Protection Authority (CCPA), Advertising Standards Council of India (ASCI), and the Ministry of Consumer Affairs (MCA), each with a different role.
Q5. What is the role of the Central Consumer Protection Authority (CCPA)?
The CCPA, established under the Consumer Protection Act, 2019, is a statutory body empowered to:
i. Protect consumers from unfair trade practices and misleading ads
ii. Issue guidelines for influencers and celebrities
iii. Conduct investigations and impose penalties
iv. In 2023, the CCPA issued detailed guidelines for influencers and took real action against violators, making it a key player in regulating online endorsements.
Q6. What does the Advertising Standards Council of India (ASCI) do?
The ASCI is a self-regulatory body that monitors advertising content across print, TV, and digital platforms. It has issued Influencer Guidelines (2021) which require:
i. Honest disclosures
ii. Proof for product claims
iii. Advertising must not be aimed at children or people who are more likely to be influenced by unverified claims.
ASCI also plays an active role in maintaining advertising standards by collaborating with brands and content creators, and it holds the authority to recommend the withdrawal of content that fails to meet its code.
Q7. What is the role of the Ministry of Consumer Affairs (MCA)?
The Ministry of Consumer Affairs is the central authority responsible for policy-making and awareness related to consumer rights. It:
i. Supports the enforcement of the Consumer Protection Act
ii. Launches public awareness campaigns (like “Be Alert, Be Safe”)
iii. Publishes press releases, advisories, and compliance deadlines for digital influencers
iv. It works in coordination with the CCPA to implement legal reforms.
Q8. What are the penalties for influencers who don’t follow these rules?
Penalties may include:
i. Financial penalties starting from ₹10 lakhs, with higher amounts applicable in cases of continued non-compliance
ii. Bans on endorsements
iii. Public notices and legal proceedings
The CCPA Guidelines, 2023 give regulators the authority to take strict action if influencers break the rules.
Q9. Can foreign influencers also be penalised under Indian law?
While Indian law cannot directly punish foreign nationals, if the product is marketed to Indian consumers, the platform or brand involved may be held accountable. In serious cases, the Indian government can request action through cross-border regulatory channels.
Q10. What is the responsibility of brands who hire influencers?
Brands must ensure that influencers:
i. Disclose paid collaborations
ii. Do not make false or unverified claims
iii. Follow ASCI and CCPA rules
If the influencer fails to comply, the brand may also be held liable for misleading advertising.
