When you need to disclose
ASCI's test is a material connection: any connection between advertiser and influencer that may affect the weight or credibility of what the influencer says. Its list includes money, free products "with or without any conditions attached including those received unsolicited", discounts, gifts, contest entries, trips or hotel stays, media barters, coverage, awards, and family or employment relationships.
- Disclose even if your review is honest and entirely your own words, as long as the connection exists.
- Disclose if a brand sent you something free and you mention it, even if nobody asked you to.
- No disclosure needed if there is no material connection: you bought the product yourself and happen to like it.
If a complaint is disputed, ASCI accepts a signed declaration from a senior person at the advertiser stating there was no connection. Where the advertiser is hard to trace, or several brands appear, the influencer's proof of purchase can be enough. Keep your receipts.
The labels ASCI permits
Any one or more of these ten:
| Written labels | Platform tags |
|---|---|
| Advertisement | "Paid Partnership" tag on Instagram |
| Ad | "Includes Paid Promotion" tag on YouTube |
| Sponsored | |
| Collaboration | |
| Partnership | |
| Employee | |
| Free gift | |
| Affiliate |
The label should be in English or in the same language as the advertisement, in a way an average consumer understands. ASCI also says a platform's disclosure tool "should be considered in addition to" your own disclosure, so the safest habit is to use the platform tag and write a label too.
Where the label goes, by format
The principle is that it must be upfront and prominent, hard to miss, and not buried in a group of hashtags or links. ASCI says disclosures are likely to be missed if they appear only on a profile page or bio, at the end of a post or video, or anywhere that needs a click on "more".
| Format | What to do |
|---|---|
| Video of 15 seconds or less | Label stays on screen for at least 3 seconds |
| Video from 15 seconds to under 2 minutes | Label stays for one third of the video's length |
| Video of 2 minutes or more | Label stays for the entire section where the brand or its features and benefits are mentioned |
| Picture or video with no text, such as stories | Label superimposed on the picture or video, clearly visible |
| Live stream | Announced at the beginning and the end. If the post stays up afterwards, add it to the caption |
| Audio | Announced at the beginning and the end, and before and after every break |
Finance and health influencers have extra rules
An August 2023 addendum says influencers giving advice on banking, financial services and insurance, or on health and nutrition, must be qualified, and must say so upfront.
- Stocks and investments: registered with SEBI, with the registration number stated alongside your name and qualifications.
- Other financial advice: a suitable qualification such as an IRDAI insurance licence, CA or CS.
- Health and nutrition: a relevant qualification such as a medical degree, or certification as a nurse, nutritionist, dietician, physiotherapist or psychologist, depending on the advice.
Show it superimposed on the visuals or as the opening remark of a video, at the top of a text post, or at the start of the ad in audio. Without those qualifications you can still share generic information that is not technical advice. ASCI's own examples are an insurer's influencer talking about the need for annual check-ups, and a chef promoting a meal service. You must be able to show proof of qualifications if ASCI asks.
Virtual influencers and claims
A virtual influencer must also disclose, upfront and prominently, that the audience is not interacting with a real human being. And for any influencer, ASCI advises you to satisfy yourself that the advertiser can substantiate the claims in the ad, so ask the brand for the evidence before repeating "clinically proven".
Who is responsible, and what can happen
Both of you. The influencer is responsible for making the disclosure. The advertiser is responsible for making sure the post follows the code, and can ask the influencer to edit or delete it.
ASCI is a self-regulatory body and does not itself fine anyone, but the law sits behind it. The Central Consumer Protection Authority's 2022 guidelines on misleading advertisements cover endorsements, and under the Consumer Protection Act, 2019 it can fine manufacturers, advertisers and endorsers up to ₹10 lakh for a misleading advertisement, rising to ₹50 lakh for repeat violations. It can also bar an endorser from making endorsements for up to one year, and up to three years for later violations. The Department of Consumer Affairs published a separate "Endorsements Know-hows" guide for celebrities and influencers in January 2023.
A checklist for every paid post
- Did the brand give me anything of value? If yes, label it.
- Is a permitted label visible without tapping anything?
- On video, does it stay long enough for the length of this video?
- Have I used the platform tag as well as my own label?
- Can the brand back up the claims I am making?
- If this is finance or health advice, is my qualification stated upfront?
Sources
- ASCI: Guidelines for Influencer Advertising in Digital Media (PDF)
- Mondaq: CCPA guidelines for misleading advertisements and endorsements, 2022
- Vikaspedia: Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022
- King Stubb and Kasiva: Endorsement Know-hows guidelines
General information, not legal advice. ASCI can update its guidelines, so check its site before relying on a specific rule.