Govt to curb proxy brand promotions by Social media influencers; will bring guidelines soon

Govt may soon fine on social media influencers for proxy branding on social media up to Rs 50 lakh.

New Delhi: Aiming to rein in social media influencers who indulge in proxy brand promotion or paid promotions without divulging this to their followers about it, the government may soon fine them up to Rs 50 lakh. According to sources privy to developments, the Consumer Affairs Ministry is coming up with guidelines on social media influencers on December 24, under which they would have to disclose to their followers by putting up disclaimers if they indulge in promotion of any particular product or brand and have been paid for doing so, through their videos or posts on any such platforms.

After the issuance of these guidelines, if such influencers fail to divulge to their followers that they have indulged in proxy paid promotion through their platforms, then a complaint against them can be made to the Central Consumer Protection Authority (CCPA), and a fine of up to Rs 50 lakh can be imposed on them by it.

Sources said that often social media influencers indulge in proxy paid promotions through their videos and comments on social media platforms and indirectly influence their followers into using or consuming a particular product, through their views. As of now there are no guidelines to curb this kind of proxy promotions by social media influencers, therefore now the government has come up with rules to prevent this practice. These guidelines would be applicable on financial influencers also, sources added.