The Annual Complaints Report 2022-2023 released by the Advertising Standards Council of India (ASCI) unearthed some discomforting facts about influencer violations, which are at an all-time high at 26%. ASCI examined 7,928 advertisements from print, digital, and television sources during the time period and recorded 2, 039 complaints. Categories like personal care, food and beverage, and fashion and lifestyle, topped the list of influencer-related violations.
An influx in the number of influencer violations despite having the guidelines in place is perturbing but not surprising, according to industry watchers. “The ASCI guidelines are mere guidelines and not a law,” points out Shivam Agarwal, Co-founder, Kromium.
In a bid to appear more organic, brands may want subtle integrations of their products and services. “Hence, they sometimes want to skip the paid promotions tag altogether,” he notes. “But influencers who are aware very well understand the seriousness of the matter and never hide it if they are endorsing a product.”
Sometimes, even the promise of higher engagement and financial gains from controversies become too hard for some influencers to resist, says Ambika Sharma, Founder and MD, Pulp Strategy. “The rapidly changing landscape of social media introduces new trends and platforms at a pace that makes it difficult for guidelines to keep up effectively,” she highlights.
"In the emerging landscape of influencer marketing, many influencers may not be fully aware of the guidelines they need to follow, which can lead to unintentional breaches. To address this, it's vital to adopt an inclusive standpoint that recognizes the collective obligation of brands, influencers, agencies, and others to maintain ethical standards. When taking a closer look at the violations, a significant aspect is the failure in disclosing affiliations and paid promotions transparently. Addressing this shortcoming requires a two-fold strategy, in my opinion: instilling a culture of due diligence and sharing accountability among all parties involved," Ritesh Ujjwal, CEO & Co-Founder, Kofluence.
Celeb violators
Misleading ads by celebrities have become a thorn in ASCI’s side. A total of 503 such ads were processed as opposed to the 55 last year. The number of violations rose by 803%.
In 97% of these ads, celebs failed to provide evidence of due diligence as mandated by the Consumer Protection Act. This again is a severe issue as ads featuring celebrities have a high impact on consumers. Cricketer Mahendra Singh Dhoni and Bhuvan Bam were top celebrity violators.
One would expect celebs to toe the line when it comes to endorsement guidelines since they usually have an agency in place to handle their promotions, and are generally more familiar with the endorsement ecosystem.
Ramya Ramachandran, Founder and CEO of Whoppl, sheds some light into this notion: “Celebrities tend to have a cloud. Many times, when they are doing content for friends or family they do not use the extended hashtags because they think there is no transaction involved.
“Many times it is considered as a violation wherein if one celebrity has launched a product and another celebrity is promoting then it is out of supporting the celebrity and their products. It may not be sponsored content where in they are being paid to speak about the product.
“In such times, there is ambiguity because you don’t know whether the person speaking about the product is using it and if it coming from a thorough recommendation.”
Grey areas in the ASCI guidelines could also make the violators more confident, notes Agarwal. “Maybe if actions were to be taken against violations, it would help. Also, it is expected that the agency or the brand involved takes these matters into their hands as most celebrities are not even aware of certain guidelines. Hence it could be a case of ignorance rather than confidence.”
Then there’s the sense of invulnerability that comes from being a celeb with a devoted fan base. “This sense of security might lead them to believe they can bend or even ignore the rules without facing significant repercussions. Their elevated status often shields them from immediate negative feedback,” Agarwal says.
Brand violators
Brands are not too far behind when it comes to violations, according to the report, which found that the gaming industry is the worst offender. Close on its heels are the FMCG, health, beauty and wellness categories, from which the public expects more transparency.
Honasa Consumer was the biggest violator in the given time period with 109 out of 115 ads needing modifications. The company refused to comment on the findings.
Other violators like FMCG giant Marico Limited and Pureplay Skin Sciences (India) Pvt Ltd have also declined to comment on the same.
In light of these findings, two companies – Sugar Cosmetics and Hindustan Unilever Limited (HUL) – responded to exchange4media’s queries.
"Our legal team works diligently with the ASCI to address queries. For us, customer trust and confidence are of high priority. We remain committed to delivering high standard quality products for our customers." - Kaushik Mukherjee, Co-founder & COO, SUGAR Cosmetics.
A company spokesperson from Hindustan Unilever Limited said, "As a responsible marketer and member of ASCI, we have always complied with ASCI guidelines and recommendations. We also encourage our influencers, who contribute more to our advertisements now, to adhere to the recently introduced disclosure norms and modify content where required. We remain committed to responsible communication."
Many companies whom we contacted were oblivious to their own violations and said that they are speaking to their legal teams to take stock of the matter before issuing a response. The copy will be updated as soon as we hear from them.