Influencer marketing violations continue to surge; experts suggest ways to prevent

Internet’s latest obsession, Orhan Awatramani also known as Orry, recently landed a brand deal with CRED. But people were quick to notice that the post violated the Advertising Standards Council of India's (ASCI) rules by not adding a disclaimer. 

Later, netizens pointed it out, and ASCI urged the brand to rectify the mistake. However, Orry isn’t the only creator that violated ASCI’s guidelines. Recently, the watchdog released a half-yearly complaints report, in which digital violators accounted for 79% of the ads and among these digital violators, influencers contributed to 22% of those violations. 

On the rising number of these influencer violations, Manisha Kapoor, CEO & Secretary General of ASCI said, “The sheer number of influencers is so large that there are bound to be violators. But that said, just because they aren’t well versed with the guidelines, they can’t continue to be violators.”

Influencer violations have been on the rise. Earlier this year, ASCI’s report stated that it processed 2700 cases of brands and influencers not disclosing material connections. The self-regulatory industry body enforced influencer guidelines in May 2021, after which it began processing complaints. 

But the violations aren't limited to digital creators; the lines are often blurry for celebrities as well. In 2022, ASCI’s report revealed a sharp increase in misleading ads featuring celebrities. The number of such complaints rose 815% to 503% in 2022-23 from 55% the previous year. 

According to their website, big names like Amitabh Bachchan, Bipasha Basu, Vidya Balan, Disha Patani, Tiger Shroff, and others have continued to breach the codes for influencer advertising in digital media and remained non-compliant.

Lack of law enforcement

According to the endorsement guidelines laid out in early 2023, influencers would be liable to pay a fine of up to INR 10 lakh for violation of the guidelines and the penalty can go up to INR 50 lakh for repeated violations.

Ambika Sharma, Founder And Managing Director of Pulp Strategy Communications mentioned that the lack of law enforcement is a big part of why despite the several initiatives, the industry is failing to comply with the code. She further noted other reasons that are directly affecting this. 

• Complex regulatory landscape: The regulatory landscape surrounding influencer marketing is complex and fragmented, making it difficult to enforce consistent standards.

• Industry self-regulation: The industry relies heavily on self-regulation, which may not be effective in addressing all ethical concerns.

Divya Rajani, General Manager - Strategy & Research, Head of Influencer Marketing & PR, Digiosmosis thinks that the reason for the continued violations and the rise in complaints is a direct result of lack of credibility. 

She said, “The bigger reason for the rise in complaints is because today everyone endorses technically everything, and the lack of authenticity and credibility has become an issue.  Most brands today don't want to develop long-term relationships with influencers. This way, neither the brand nor the influencer are being consistent about things. Which is why in some ways, the audience feels cheated.”

Digital complaints peak

For the past few years, digital media has continued to be the biggest source of violations according to ASCI. Last year, the medium stood at 75%, which increased to 79% this year. 

Manisha Kapoor thinks that the reason behind the surging numbers might be new advertisers. “There are a lot of new advertisers on digital. A lot of people who are advertising on digital, might not necessarily be marketing or legal experts. They might lack the understanding of what rules and regulations need to be followed,” she told Social Samosa.  

Other experts also agreed. Samarjit Choudhry - Head of Growth & Strategy, Media.Monks India thinks that the surge in these numbers is directly connected to the rise in the number of new-age agencies. 

“Earlier, traditional marketers were very cognizant of the fact that if they didn’t self-regulate, it could become a problem. But in the past ten-odd years, a lot of newer digital agencies have come up that lack the experience that existed in larger and traditional agencies. The core issue here is that they aren’t aware,” said Choudhry.  

Arushi Gupta, Business Head of Influencer.in said, “Unlike TV or print, if something is done digitally it automatically becomes a two-way communication.”

She further said, “The increase in the number of smaller agencies which might not be well-versed in the ethical norms part, need to be educated on it and given proper guidance by increasing awareness. This will help in having to streamline things and avoid violations in the process.” 

The need for more awareness 

Kapoor said, “Unlike TV and print, the digital universe is infinite. Along with the industry, its regulations are evolving as well. Due to this, brands or companies might put out content that is questionable on digital platforms, that they would otherwise avoid on TV or print. 

Experts believe that the reason these violations keep on increasing is because of the lack of education and awareness in the sector. 

Samarjit Choudhry said, “Digital is a very porous medium. It is nascent and ever-evolving. Over the years, if marketers learn to adapt and be mindful of their work, the number of violations will start going down.”

Sharma pointed out some legal and ethical aspects that need to be discussed in the future to avoid violations:

• Advertising standards: Review and update advertising standards to specifically address influencer marketing practices.

• Consumer protection: Strengthen consumer protection laws to safeguard consumers from misleading or deceptive advertising.

• Data privacy: Ensure that influencer campaigns comply with data privacy regulations and protect consumer information.

• Transparency and disclosure: Establish clear guidelines for transparency and disclosure of influencer partnerships and paid endorsements.

• Monitoring and reporting: Establish effective mechanisms for monitoring and reporting violations of regulations and ethical standards.

She added, “By addressing the concerns and implementing effective measures, the digital industry can play a role in restoring trust in influencer marketing and ensuring that it remains a valuable tool for connecting brands with consumers.”

Experts think that as the industry matures and the norms of guidelines become second nature, the industry is bound to make strides in the right direction.