Centre likely to release guidelines for social media influencers next month

The Centre will reportedly release the guidelines for governing social media influencers in December. According to a report in Mint, the guidelines will impose "stiff fines" on those found flouting the norms. The guidelines are in the final stages of finalisation. 

The norms will focus on disclosing brand partnerships. 

"These days, young people make purchase decisions based on social media content put out by influencers. Unlike in the case of an actor endorsing a product in a television ad, it is difficult to figure out if the influencers actually use the products or not. Sometimes, people may not know the influencer, unlike in the case of actors; so, disclosure is going to be very important," a person aware of the matter, told Mint.

Additionally, the Securities and Exchange Board of India (Sebi) is also planning similar norms for online financial advice providers or finfluencers, who may be fined Rs 10 lakh if they fail to mention their association with a brand. For repeat violations, the fine may go upto Rs 50 lakh. 

On November 4, Business Standard had reported that finfluencers have the power to influence stock prices. This posed a regulatory dilemma to Sebi.

The Advertising Standard Council of India (ASCI), a self-regulatory body, suggested upfront disclosures on brand collaborations, advertisements, paid partnerships or sponsorships. 

In its latest report, ASCI said that 28 per cent of ad violations in India were done by "influencers". The highest came from personal care followed by food and beverage and virtual digital assets.