If social media influencers don’t disclose paid promotions to their followers, the government plans to punish them with up to Rs 50 lakh. Due to their massive followings, marketers frequently ask social media influencers to advertise their products on their accounts. If influencers who engage in proxy promotions do not reveal paid promotions, they risk severe repercussions.
A brief about Social media influencers if do not disclose paid promotions would be fined Rs. 50 lakh:
According to sources familiar with the situation, the Consumer Affairs Ministry will begin enforcing new regulations for social media influencers on December 24. They would be required to tell their followers if they received compensation for promoting the products they are exhibiting on their social media accounts.
The social media influencers must now make sure to disclose to their followers that they have been compensated to promote the goods.
According to the report, if influencers use their platforms to engage in proxy-sponsored marketing but fail to disclose this to their followers, the Central Consumer Protection Authority (CCPA) may receive a complaint against them and penalize them up to Rs 50 lakh.
Influencers on social media occasionally use posts and videos to blatantly advertise things. Through their opinions, they persuade their followers to use or consume a particular product. Even though they are not entirely aware of their own products, this can result in a lot of undesirable situations.
There are presently no regulations in place by the government to prevent this form of influencer marketing on social media. The government is currently working to develop regulations to stop this practice. According to sources close to the agency, the new regulations would apply to celebrities and financial influencers in addition to social media influencers.
The rules are being released to shield customers from any sort of deceptive advertising. “Anyone supporting any particular brand on social media will now have to come clean,” as per the report.
Notably, social media influencers who receive free products from businesses must pay taxes on those gifts. If they obtain a thing, such as a car, mobile phone, cosmetics, or clothes, and choose to keep it, they must pay a percent TDS. Influencers won’t be required to pay taxes, though, if they return the goods to the business after using the services.