The guidelines aim to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines, said the Ministry.
The ministry secretary said the ‘Endorsement Know-hows!’ specify that disclosures must be prominently and clearly displayed in the endorsement, making them extremely hard to miss. Any celebrity, influencer or virtual influencer who has access to an audience and can influence their purchasing decisions or opinions about a product, service, brand, or experience must disclose any material connection with the advertiser. This includes not only benefits and incentives, but also monetary or other compensation, trips or hotel stays, media barters, coverage and awards, free products with or without conditions, discounts, gifts and any family or personal or employment relationship.
Singh clarified that endorsements must be made in simple, clear language and terms such as ‘advertisement’, ‘sponsored’, or ‘paid promotion’ can be used. They should not endorse any product or service and service in which due diligence has been done by them or that they have not personally used or experienced.
The guide is released in alignment with the guidelines set by the Consumer Protection Act of 2019. The Act established guidelines for protecting consumers from unfair trade practices and misleading advertisements. The Department of Consumer Affairs published Guidelines for prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on June 9, 2022.
These guidelines outline the criteria for valid advertisements and the responsibilities of manufacturers, service providers, advertisers, and advertising agencies. These guidelines also touched upon celebrities and endorsers. It states that misleading advertisement in any form, format or medium is prohibited by law.
Several social media influencers and agencies participated via video conferencing and the industry appreciated and supported the release of these guidelines.