Centre notifies ‘endorsement know-hows’ / guidelines with a view to ensure that audiences are not misled by individuals: applicable to celebrities, influencers, virtual influencers on social media platforms

The Department of Consumer Affairs has notified ‘Endorsements Know-hows’ (“Guidelines”) for celebrities, influencers, and virtual influencers on social media platforms with a view to ensure that individuals do not mislead their audiences when endorsing products or services and that they are compliant with the Consumer Protection Act and any associated rules or guidelines.
Key Highlights:
1. Who Should Disclose?
a) Individuals/groups who have access to an audience and the power to affect their audiences’ purchasing decisions or opinions about a product, service, brand, or experience, because of the influencer’s/celebrity’s authority, knowledge, position, or relationship with their audience.
b) Celebrities
c) Influencers
d) Virtual Influencers
2. When to Disclose?
a) When there is a material connection between an advertiser and celebrity/influencer that may affect the weight or credibility of the representation made by the celebrity/influencer.
b) Material connection could include but is not limited to benefits and incentives, such as:
• Monetary or other compensation;
• Free products with or without any conditions attached, including those received unsolicited, discounts, gifts
• Contest and sweepstakes entries
• Trips or hotel stays
• Media barters
• Coverage and awards; or
• Any family, personal or employment relationship
3. How to Disclose?
Disclosures should be:
a) placed in the endorsement message in a manner which is clear, prominent and extremely hard to miss
b) superimposed over the image enough for viewers to notice
c) made in both audio and video format
d) displayed continuously and prominently during the entire stream
e) in simple and clear language
f) in the same language as the endorsement.
4. Due Diligence:
Celebrities/influencers are advised to always review and satisfy themselves if the advertiser is in a position to substantiate the claims made in the advertisement. It is also recommended that the product and service may actually be used or experienced by the endorser.

Source: Department of Consumer Affairs