REGULATION OF ADVERTISING BY INFLUENCERS ON DIGITAL MEDIA

By Akangsha Dogra, National Law School of India University , Bengaluru 


The "internet influencer," a colloquial for bloggers, Instagrammers, Pinners, and other social media consumers who, against the context of widespread economic and professional uncertainty, offer curated content to social media viewers and receive revenue by association with major brands, has been the most buzzed-about figure in the twenty-first century of marketing so far. 

The advent of the internet influencer in the first two decades of the twenty-first century has driven billions of marketing and advertising dollars into the social media economy and especially during the pandemic which ultimately altered the social media economy's cultural production. Therefore, with the increase in the industry, various issues in this regard have also been elevated. In September 2020, the ASA (Advertising standard authority)  carried out a three-week monitoring exercise to review the Instagram accounts of 122 UK based influencers and over 24,000 Instagram stories, posts, IGTV, and reels to assess whether advertising content was being properly disclosed and was identifiable as such and inconsistent disclosures were quite evident. 

Similarly, The FTC published “Disclosures 101 for Social Media Influencers” (the “Guide”) in 2019 to instruct businesses and influencers on various means to properly endorse products/services via social media.  The Advertising Standards Council of India (ASCI) has recognized the problem and issued guidelines that are open for public comment until 8 March 2021. The final guidelines will be implemented by March 31, 2021, and will be implemented on all promotional posts published on or after April 15, 2021. 

DIRECTIONS FOR REGULATING PROMOTIONAL ADVERTISEMENT  

It has become essential to clarify the meaning of such concepts when they apply to advertisement legislation and standards in the current scenario. The following terms are provided: Advertisement, material connection/ payment, Digital media, media owner, Influencers.

Some of the salient features of the guidelines are:

● Disclosure needs to be made that it is an ad. This disclosure consists of:

WHAT -The information communicated is an Advertisement
WHY- Easily recognizable as an advertisement without even interacting with it
HOW- Using Disclosure label
WHEN- Need to upfront parallelly while communicating information

● Disclosure label options are provided, for example, #ad, #collab #sponsored, and specifications for disclosure label are provided.

● The primary purpose is clear that advertising must be differentiated by the ordinary audience from editorial and autonomous user-generated material to avoid the public from getting confused between the two.  This goal is reflected in each of the guidelines.

● It suggests that the contractual agreement between the advertiser and the influencer includes clauses about disclosure, the use of filters, and due diligence.

● It offers a means or required time period for the disclosure labels depending on the format, such as a textual post, video length, live streams, audio posts, or disappearing videos.

●Influencers must ensure that filters are not used to exaggerate the claims made by brands in their promotional messages.

IMPACT OF THE GUIDELINES 
 
The rise of influencers, Facebook and Instagram users, makes it easier to create and share content. Marketing by influencers is thriving. It feels like wherever you look on social media, a new influencer is coming up and making brand deals. To help users understand social media a little more and make sure that they understand the nature of the content, the influencer is marketing.

● Promote transparency 

As more and more Indians connect to the Internet, they discover and engage with a multitude of products regularly. These rules will encourage accountability, and they will also increase the degree of trust between consumers, influencers, and brands. The marketers and influencers are expected to practice due diligence on aspects such as the use of filters and the technological or efficiency statements made by a company, and it is likely to give consumers a sense of transparency and clarification.

● Protection of consumer

The endorsers are expected to verify the veracity of the product or service's claims. In the case of a consumer protection law, the consumer’s rights are protected against misleading products and services. Similarly, the Advertising Standards Council of India (ASCI) has also acknowledged the issue and formulated guidelines for protecting the consumer.

● Streamline the process for the influencer marketing community

The ASCI considers that influencers standards and the influencer marketing environment need to be implemented, demonstrating how the industry has developed and has adopted a mainstream character in the broader media space. These guidelines will streamline space and give guidance and ensure that there is an added sense of social responsibility within the group of influencers.

● Determination of Advertising material from regular online content 

Digital content creators now hold a similar status to that of celebrities and have the potential to shape the opinion of the masses. Digital space is enormous, and advertising material is frequently indistinguishable from daily articles especially evident in the time of COVID when people are indoors. These standards will help users to recognize advertising ads and digital influencers as well.
This only means more freedom for an agency to practice its craft or carry on its business effectively. It aims to build public confidence in advertising, which is reflected in the recent formulation of guidelines in the digital medium context.

CONCLUSION 

The guidelines have become a need, as the influencer industry in India is booming. As an industry, it has become mainstream within the advertising space. Influencers are becoming an integral part of the advertisement ecosystem. They should also be mindful of the best practices on how to be responsible and protect the interests of consumers and the establishment of their brands. This simply means that an agency will have more freedom to practice its craft or conduct its business effectively. It aims to increase public trust in advertising, as evidenced by the recent formulation of guidelines in the context of digital media. Consumers have the right to receive direct advertising and know when a particular message is commercial in nature.







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