 "financial influencers, finfluencers, influencers")
The Advertising Standards Council of India (ASCI) on Monday updated its “Influencer Advertising Guidelines” specific to health and finance influencers, by drawing a distinction between generic promotions and promotion of technical aspects of a product or service, which consumers are likely to interpret as expert advice.
Under the updated rules, influencers are not required to have professional qualifications for generic promotions. Generic promotions include promotions such as an insurance company using an influencer to talk about the need for annual health check-ups or a health food company tying up with a chef or a food blogger to promote a meal service, according to ASCI’s updated guidelines.
Before the update, all influencers providing advice, promoting, or commenting on the merits or demerits of commercial products in banking, financial services, and insurance (BFSI), and health and nutrition were required to possess relevant qualifications and certifications, ASCI said in a statement.
Now, influencers in BFSI and health will need to possess relevant qualifications and declare such qualifications only when technical information and advice are provided.
“Influencer marketing has matured beyond simple endorsements and now often involves strategic partnerships for various aspects of brand communication,” Manisha Kapoor, chief executive officer (CEO) and secretary-general, ASCI, said in a statement. “The updated guidelines bring in the required nuance for influencers operating in the BFSI and health and nutrition space.”
N Chandramouli, CEO of TRA Research, said that the update will impact the nature of collaborations for influencer marketing. “It will automatically come to a level where those who are not influencers or advisors will come into the market as advisors. For example, several doctors who are not (yet active in promotions and marketing). The market will shift from influencers to advisors.”
He added that the update would not bring any additional money into influencer marketing, and that the same amount of money would now be distributed among advisors. He also anticipates similar guidelines in other sectors such as education. “It (the updated guidelines) would put smaller or regional influencers at a disadvantage because they (smaller influencers) give certain kinds of advisory notes that they aren’t supposed to.”
According to Rediffusion Chairman Sandeep Goyal, the updated guidelines won’t have any effect if there is no intent to enforce them. “The point is they (ASCI) have no intent on enforcing them (the guidelines). You can have as many advisories as you want, but eventually, if nobody follows up — for example, look at what is happening with all these pan masala ads on IPL. They are doing nothing about it.”
The updated guidelines, however, apply only to generic advice. Influencers sharing or promoting technical information related to stocks and investments are still required to be registered with the Securities and Exchange Board of India. Those providing other kinds of financial information are required to have relevant qualifications like an Insurance Regulatory and Development Authority of India licence.
Similarly, influencers posting technical information on health and nutrition are still required to have relevant qualifications, such as a medical degree or be certified nurses, nutritionists, dieticians, physiotherapists, or psychologists, depending on the specific advice being given, according to ASCI’s guidelines.
