The Department of Consumer Affairs last week made it mandatory for social media influencers to disclose all the material benefits received by them, including gifts, discounts and awards. Failing to do so will attract strict legal action. The influencer may even be banned from endorsements for up to three years.
According to the new guidelines named "Endorsement Know Hows - for celebrities, influencers and virtual media influencers (Avatar or computer generated character) on social media platforms", the Central Consumer Protection Authority (CCPA) can also impose a penalty of up to Rs 10 lakh on manufacturers and endorsers. The penalty may even go up to Rs 50 lakh for subsequent offences.
What is an "influencer"?
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