When the new draft guidelines for influencer led advertising come into play, all paid promotions and product reviews posted on social media platforms will have to be labelled clearly to differentiate them from non-sponsored content.
According to the draft guidelines shared by the Advertising Standards Council of India (ASCI), social media influencers are also required to conduct due diligence on the claims made by advertisers. ASCI has invited feedback from shareholders on the guidelines till March 8, and plans to finalise the rules by April 15.
To better understand what works and the legal liabilities that rest with various stakeholders, TechCircle spoke with Vikas Bagaria, CEO of hygiene and wellness brand Pee Safe; Viraj Sheth, founder of digital media agency Monk Entertainment; and Shlok Srivastava, popular technology content creator and host of TechBurner on Youtube.
While the guidelines are being looked at as an opportunity to increase transparency among online content creators for promotional videos, it also puts the onus on influencers to verify claims made by brands, the panelists said. There was also agreement on the growth of influencer-led marketing as a growing channel which needed regulation, as large number of social media platforms monetise the channel for revenues apart from the rise of well-funded social commerce companies in India.
Watch the video for stakeholder perspectives on the draft regulations.
With inputs from Shubham Sharma and Debangana Ghosh