Priyanka Patnaik, National Law University Odisha
ABSTRACT
The 21st century has revolutionized the way digital media works all across the globe. Social media marketing has increasingly become popular where the social media influencers create content, endorse, review or advertise a brand. Ever since the pandemic has begun the influencer marketing has become immensely popular as the brands are focusing on social media influencers than traditional advertisements. A social media influencer has large following and has the power to affect the purchasing power of consumers from his knowledge, position and relationship with his or her audience. However, with the increasing use of social media influencers, they must understand what they are endorsing or advertising a particular brand. There have been many instances where social media influencers were called out for their negative effects on the brand. So there is a need for regulating the social media influencers to protect the interests of the consumer. The Advertising standards council of India (ASCI) has come up with guidelines for social media influencers while promoting brands. The aim is to regulate the market and keep a balanced advertisement environment. These guidelines will be applicable on or after 15th April 2021. Along with that Consumer Protection Act 2019 has also addressed the challenges that digital media has imposed on the consumers.
The guidelines have provided a list of what is digital media, i.e. internet, content, websites, blogs, digital, etc. After the guidelines, influencers must disclose that they have a paid partnership and that such posts are identified as advertisements. Such disclosure has to be made so that an average consumer doesn't miss it. It should be upfront and prominent. In case it doesn’t contain caption or text or disclosure then audio, video, or live stream has to be done. Also, the influencers have to conduct their due diligence before engaging in promotional advertisement and that they can substantiate the claims made in the advertisement. In a country like India, it is crucial to have guidelines because the common man worships influencers and celebrities and will consume whatever they endorse. This will help the consumers differentiate between a personal opinion and a commercial advertisement. UK‘s advertising standards authority (ASA) released a report where it was found that social media influencers were violating the rules by not disclosing the advertising content. In the US it's the FTC ( federal trade commission ) that supervises influencer marketing. It has a guide named disclosure 101 for social media influencers to mandate influencers to endorse products and services properly. Also, there are stricter penalties for the influencers and brands who violate them. That’s why companies enter into an influencer marketing agreement with the social media influencers. Digital marketing is the future and brands worldwide are using it to attract consumers and with the success in influencer marketing these guidelines are needed which will set boundaries in the digital marketing space. The paper will discuss the guidelines given by ASCI and how it is effective .It will discuss the need of such guidelines and also compare how other countries are regulating the influencers.
Keywords: Digital media , Digital marketing, Advertising standards council of India (ASCI), Due Diligence, Paid partnership
