Fair rules or added obstacles? Industry reacts to new social media guidelines

In the age of influencer marketing, social media has turned into a great place for entertainment and discovering new products and services. With that said, it's also an unregulated space that can become a hotbed for consumer complaints and fraud if there's no transparency between influencers and their audience.

To make influencers accountable for what they promote, the Consumer Affairs Ministry released a set of guidelines on January 20, demanding complete transparency from influencers and celebs endorsing brands on social media. 

Rohit Kumar Singh, Secretary Department of Consumer Affairs released the "Endorsement Know-hows!" in response to the rapidly growing digital world, where advertisements are no longer limited to traditional media like print, television, or radio.

"With the increasing reach of digital platforms and social media, such as Facebook, Twitter and Instagram, there has been a rise in the influence of virtual influencers, in addition to celebrities and social media influencers. This has led to an increased risk of consumers being misled by advertisements and unfair trade practices by these individuals on social media platforms," read the official statement by the ministry.

“Today’s guidelines are aimed at social influencers who have a material connection with the brand they want to promote on various social media platforms. So this is an obligation for them to behave responsibly,” Singh told reporters.

According to Statista.com, as of 2022, the influencer marketing industry in India was valued at over Rs 12 billion. It was projected to grow at a compound annual growth rate of 25 percent over the next five years. The industry's market value was estimated to amount to Rs 28 billion Indian rupees by 2026. Given the might and potential of the industry, it's imperative for governments to rein in the influencer space with the new guidelines. 

e4m reached out to the influencer marketing fraternity to know their thoughts about the ministry's latest guidelines. Aman Sharma, VP, Influencer Marketing, Qyuki, said, “The common goal here is consumer safety so we think these are quite beneficial for everyone involved. These guidelines cannot work in isolation and will be imposed on all platforms where consumers access creator-made content.”

On a similar note, Shahir Muneer, Founder, and Director, Divo, said, “I foresee influencers and brands face the risk of consumers filing litigation if failed to do so with more awareness coming to consumers and also if influencers or brands fail to instil this. Brands and Agencies will have to ensure they comply, as a lot of influencers in the market are not legally savvy to know all these compliances, and will need their support to ensure they also do not fall into such risks.”

We also reached out to influencers to understand their reaction on the same, Neha Rohatgi, Influencer and content creator, said, “I think it is a great decision and this was really needed. A lot of people follow influencers on various social media platforms and in this day of social media, influencers play a great part in our choice of products and services. 

“It will not affect the influencers who are honest with their influencers as they will never misguide their followers. However, at the same time it will put a leash on a few influencers who misguide their followers for their personal gains”, she added.

Many influencers have already started putting a tag on their content when it is promotional content.

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Many times while collaborating with the brand, some influencers forget to mention that it's a promotion and even endorse products that they might not use in real life. With these guidelines, the ministry will educate consumers to differentiate between entertainment/infotainment and promotional content. 

Speaking on the same, Jag Chima, Co-Founder, IPLIX Media, said, “Influencers will be more mindful of brand associations and will more than likely only choose those brands which they genuinely believe in so they can be honest about their opinions and experiences with products or services. To follow standard practices, influencers can ensure that they disclose sponsored content and partnerships in a clear and conspicuous manner. They should also be transparent about any material connections they have with brands.”

While Rohatgi said that an Influencer must check what he/she is promoting and should only promote what they actually will buy themselves. “For example, I am strictly against promoting gambling and betting apps or websites and will never promote such stuff”, she said.

But not everyone is on board. Some believe that the guidelines will muzzle creative freedom. Said a top social media marketer: “I think there are creative people trying to push boundaries, and the ministry and the associations just keep adding more boundaries. To me, these guidelines are just about a board of control throwing a fit about how they really don’t have control over an emerging medium. They are trying to insert themselves so they still stay relevant and in control.”