THE RISE OF INFLUENCER MARKETING IN INDIA: A LEGAL PERSPECTIVE ON ADVERTISEMENT REGULATIONS

THE RISE OF INFLUENCER MARKETING IN INDIA: A LEGAL PERSPECTIVE ON ADVERTISEMENT REGULATIONS

Rohit Kumar
LL.B, IV Sem.
School of Law
Manav Rachna University, Faridabad
Date : 7 March, 2025

Influencer marketing has transformed advertising in India, with social media personalities shaping consumer behavior more than ever before. With platforms like Instagram, YouTube, and Twitter driving brand promotions, influencers are now key players in the marketing industry. However, this rise has also led to increasing concerns about misleading advertisements, undisclosed paid promotions, and deceptive endorsements. Unlike traditional advertisements, which are regulated under well-established laws, influencer marketing still operates in a somewhat grey area, raising the question: Are India’s existing advertisement laws sufficient, or is there a need for stricter regulations?
From a legal standpoint, influencer marketing in India falls under The Consumer Protection Act, 2019, which holds advertisers, endorsers, and influencers accountable for misleading advertisements. According to this law, any person promoting a product or service through false claims can be fined up to ₹10 lakh for the first violation and up to ₹50 lakh for repeat offenses. Additionally, the Advertising Standards Council of India (ASCI) introduced guidelines in 2021 specifically for influencer marketing. These guidelines mandate that influencers must disclose paid collaborations using labels such as #ad, #sponsored, or #partnership. Despite these provisions, enforcement remains weak, with many influencers continuing to flout these rules without facing serious legal consequences.
One of the biggest challenges in regulating influencer marketing is the lack of active monitoring and penalties. While ASCI can issue advisories and request the removal of misleading advertisements, it does not have the power to impose legal penalties. The absence of a dedicated government authority to regulate influencer marketing allows many unethical endorsements to go unchecked. Comparatively, in countries like the United States, the Federal Trade Commission (FTC) actively monitors influencer marketing, imposing heavy fines for non-compliance. Similarly, the United Kingdom’s Competition and Markets Authority (CMA) has strict regulations to ensure influencers do not deceive consumers. India must consider adopting a stronger enforcement model to prevent misleading influencer endorsements from harming public interest.
To strengthen consumer protection, India could introduce a centralized regulatory body for influencer marketing, with the power to investigate and penalize deceptive promotions. This body could work alongside ASCI and the Ministry of Consumer Affairs to ensure that all endorsements comply with fair advertising practices. Furthermore, influencers should be required to sign legally binding agreements with brands, clearly outlining their responsibility for truthful advertising. If an influencer endorses a fraudulent or harmful product, they should be held legally accountable alongside the brand. This would create a sense of accountability in the influencer community, ensuring that they verify product claims before promoting them.
Ultimately, influencer marketing is an evolving industry that needs robust legal oversight to protect consumers from deceptive advertising. While India has taken steps to regulate influencer marketing through existing laws, the lack of strict enforcement mechanisms remains a significant loophole. The digital economy is rapidly growing, and as influencer marketing becomes a mainstream advertising tool, the legal framework must keep pace. Stricter regulations, better enforcement, and higher penalties for non-compliance will not only protect consumers but also improve the credibility of influencer marketing in India. Influencers have a duty of care towards their audience, and legal measures should ensure that this responsibility is upheld.