Advertising & Social Media Laws – ASCI guidelines, consumer protection, and influencer collaborations.

Introduction

Advertising and social media have become intertwined in the 21st-century digital ecosystem. With India’s digital ad market expected to comprise more than 55% of total ad spends by 2025, the role of self-regulatory bodies and statutory law has never been more critical. The Advertising Standards Council of India (ASCI) plays a pivotal role in setting industry standards, while statutory mechanisms such as the Consumer Protection Act, 2019, and sectoral regulations ensure enforceability. Influencer marketing, a new facet in this landscape, has prompted both legal scrutiny and regulatory innovation.

ASCI Guidelines: Foundation of Self-Regulation

About ASCI

The Advertising Standards Council of India (ASCI) is a voluntary self-regulatory organization that sets standards to ensure that advertisements in India are legal, decent, honest, and truthful. Although not legally binding, the ASCI Code is widely recognized by government agencies and Indian courts, making its self-regulatory guidelines functionally enforceable.

Key Principles of the ASCI Code

Truthfulness: No advertisement should contain statements or visual presentations which, directly or by implication, are misleading or likely to cause confusion.
Decency: Advertisements must not offend morality, decency, or religious susceptibilities of the general public.
Non-denigration: Advertising should not denigrate rival products or services.
No Harm: Products hazardous to health must not be depicted as safe or attractive to children.

Jurisdiction and Applicability

The ASCI Code applies to all advertisements published within, or directed at, India, even if originating elsewhere. This jurisdiction spans print, broadcast, and digital (including social media) spaces.

ASCI Guidelines for Influencer Advertising

Background

Due to the rapid rise in influencer marketing, the ASCI introduced Guidelines for Influencer Advertising in Digital Media. These aim to ensure that consumers are not misled and can identify promotional content with clarity.

Who Is Covered

Social media influencers and creators on platforms such as Instagram, YouTube, Facebook, Twitter, Snapchat, LinkedIn, and emerging platforms.
Celebrities, bloggers, vloggers, affiliate marketers.
Brands collaborating with influencers.
Intermediaries such as agencies or digital platforms.

Disclosure Norms

Material Connection: Any “material connection” (payment, free product, partnership, etc.) between influencer and brand must be clearly disclosed.
Prescribed Labels: Only #ad, #collab, #promo, #sponsored, or #partnership are permitted. No ambiguous abbreviations are allowed.
Format-Specific Instructions: Disclosures must be visible without any interaction (such as scrolling or clicking). Image posts require overlay text; video ads must display for a minimum duration depending on length; live streams require verbal and visual cues at the start and end.
Language and Placement: Disclosures must be clear, prominent, and in the language of the endorsement. Hidden or buried disclosures are non-compliant.

Recent Updates (2025)

In April 2025, ASCI added an addendum requiring influencers to have specific qualifications or certifications before making claims related to technical, health, nutrition, or finance topics. This ensures that only those with verified credentials can endorse complex products or services, thus protecting consumers from unverified, potentially harmful claims.

Accountability

Brands and agencies must also ensure that influencers comply with disclosure norms. In case of non-compliance, not only influencers but also brands can be held liable.

Consumer Protection and Statutory Regulations

Consumer Protection Act, 2019

The CPA, 2019, is the cornerstone statutory law for protecting Indian consumers against unfair trade practices and misleading advertisements.

Section 2(28): Defines “misleading advertisement.” Any ad that misrepresents a product or omits vital facts is actionable.
Central Consumer Protection Authority (CCPA): Empowered to regulate, investigate, and penalize misleading advertising. It can order discontinuation, impose fines up to ₹10 lakh for first offenses (up to ₹50 lakh for subsequent offenses), and even prescribe corrective advertising.
Endorser Liability: Influencers, celebrities, and endorsers are also liable for making false or misleading claims and are required to exercise due diligence before promoting products.
Ethical Guidelines: In January 2023, the Department of Consumer Affairs released explicit “Endorsement Know-hows!” emphasizing proper disclosures (#ad, #sponsored, etc.) and transparency.

Other Relevant Laws

Consumer Protection (E-Commerce) Rules, 2020: Mandate clear and upfront disclosures by e-commerce platforms and affiliates (including influencers).
Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: Prohibits advertisements for certain drugs and “magic remedies” with unverified health claims.
Information Technology Act, 2000: Digital intermediaries are liable to take down unlawful content (including misleading ads) on receiving notice.
ASCI Guidelines on Deceptive Design Patterns (2023): Address manipulative techniques like drip pricing, bait and switch, and false urgency.

Influencer Collaborations: Best Practices and Legal Risks

Structure of Influencer Agreements

Contractual Obligations: Influencer contracts should clearly articulate disclosure obligations, indemnity clauses for non-compliance, and the scope of content
Approval Rights: Brands increasingly stipulate final approval rights over content to ensure compliance with laws and guidelines.
IP and Licensing: Contracts should also address usage rights, IP ownership, and term of the content.

Legal Risks

Penalty and Enforcement: Failure to comply can attract not only financial penalties but also criminal proceedings where statutory provisions (e.g., CPA, 2019) apply.
Public Backlash and Reputation Loss: Beyond legal risks, non-compliance or misleading ads can damage brand and influencer reputation.
Due Diligence Required: Influencers must investigate product claims, and brands must ensure influencers are briefed on their legal duties.

Judicial Approach and Significant Case Laws

Supreme Court and CCPA – Misleading Endorsements

The Supreme Court of India has required all advertisers to furnish self-declarations before airing ads, certifying the ad does not mislead or make false claims. Violation invites action by the CCPA.
CCPA Orders: There have been several cases where CCPA imposed fines and mandated corrective advertisements against celebrities and influencers found misrepresenting product efficacy or omitting crucial facts.

Key Case Law Summaries

Horlicks Ltd. v. Zydus Wellness (2019): The Delhi High Court granted an injunction against a misleading comparative ad by Zydus for its drink brand Complan, showing strict judicial intervention against misleading advertisements.
Hindustan Unilever Ltd. v. Gujarat Co-operative Milk Marketing Federation Ltd. (2017): The Bombay High Court restrained AMUL from telecasting its TVC containing misleading and denigratory comparisons with HUL’s product.
CCPA v. Various Influencers (2023-25): The CCPA has initiated numerous proceedings against influencers and brands for non-disclosure, incorrect claims, and lack of due diligence, underlining regulatory teeth.

International Perspective: Comparative Insights

A quick comparison with US law (FTC guidelines):

Aspect	India	United States
Authority	ASCI, CCPA	FTC
Disclosure	Mandatory, specific hashtags (#ad, etc.)	Mandatory, but broader (#ad, #sponsored)
Penalties	Up to ₹50 lakh, imprisonment	Up to $43,792 per violation
Enforcement	CCPA, Courts, ASCI	FTC, Federal Courts
Due Diligence	Required by influencers and brands	Required by influencers and brands

Compliance Checklist for Brands and Influencers

Conduct a product claims review for verifiability.
Ensure all advertisements involving payment or incentive are properly disclosed, using prescribed hashtags.
Maintain transparency and do not exaggerate product benefits.
For health, nutrition, or finance, confirm influencer qualifications.
Retain documentation of contracts, disclosures, and product information verifications.

Conclusion

Advertising and social media law in India is a sophisticated blend of self-regulation and formal statutory oversight. The ASCI Guidelines, though voluntary, have become highly influential, while laws such as the Consumer Protection Act, 2019, provide stringent statutory safeguards for Indian consumers. Brands and influencers alike must prioritize legal compliance, especially as the law continues to adapt to the realities of digital influence and changing consumer expectations. Adhering to both industry codes and statutory mandates is not just a legal formality but a cornerstone of building trust in today’s content-saturated ecosystem.

References

The ASCI Code – Advertising Standards Council Of Indiaascionline
ASCI’s Guidelines For Influencer Advertisinganppartners+6
Legal Implications of Social Media Influencersazbpartners+3
Understanding Advertising Laws in Indiapib+6
Relevant case law: Horlicks Ltd. v. Zydus Wellness; HUL v. Amulcnlu
Regulatory Evolution of Influencer Advertisingazbpartners
Department of Consumer Affairs’ Endorsement Know-hows!jusscriptumlaw

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