ASCI Guidelines: Defining Advertisements in the Digital World

With the invention of the internet and the rising importance of social media in our lives, there has been a significant increase in the prominent modes of advertising. With influencers now endorsing numerous brands, big and small, and the abundance of such advertising by influencers, it is necessary to properly distinguish what is an advertisement and what is not. In an attempt to answer and account for this, the Advertising Standards Council of India (“ASCI”) released the draft Guidelines for Influencer Advertising in Digital Media (“Guidelines”) in February 2021 and sought feedback from big advertisers such as PepsiCo and Nestle and from various industry associations like IBHA and IAMAI.?

The final Guidelines were issued on 27th?May 2021, with effect from 14th?June 2021, and?inter alia?lay down the following:

1.?????Defined Terms

The Guidelines draw a clear picture of our growing social media economy by establishing definitions of terms such as “influencer”, “virtual influencer”, “digital media”, etc. The Guidelines are intended to allow consumers and viewers to identify when the product being promoted is for monetary gain to the influencer, or in other words, is considered an advertisement.?

2.?????Labels and Disclosures?

The Guidelines mandate that influencers shall necessarily label and disclose any such advertisement or promotional content to the general public. All disclosures are required??to be well defined and clear, and influencers may use permitted labels such as “#collab”, “#ad”, “#promo” when advertising a product. It is absolutely pertinent that the influencers label their content in an explicit matter to easily allow consumers to distinguish between paid and unpaid content. On the basis that consumers have a right to know what material is paid for by businesses, the Guidelines aim to make influencer marketing more transparent.?

3.?????Use of Filters?

Earlier, the use of filters by influencers to enhance their product was in a grey area. With the Guidelines in place, influencers are not permitted to use any filter that may exaggerate the effect or uses of the product being advertised.?

4.?????Influencer Due Diligence

Additionally, the Guidelines have emphasized the importance of due diligence and clarified that influencers are responsible for exercising caution and due diligence when it comes to promoting or reviewing a product.?

5.?????Written Agreement

Another important aspect of agreeing to advertise a product is the existence of an agreement with finely set out rules and conditions between the parties and the Guidelines suggest that an agreement between the advertiser and the influencer be put in place to safeguard the rights of both parties.?

Conclusion

Influencers have a major impact on the ideas, attitudes, and purchasing patterns of customers. The Guidelines are therefore critical and have come into effect at a time when a major portion of advertising is done through social media influencers.

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