Most Indian Influencers Are Breaking Disclosure Rules: What’s the Problem

A report has exposed a significant issue in India’s influencer scene, more than two-thirds of the country’s top influencers violate disclosure rules set by the Central Consumer Protection Authority (CCPA). These rules require influencers to clearly label paid promotions using tags like #ad, #sponsored, or #partnership, but many aren’t following them. As a result, audiences are often unaware that what seems like an honest recommendation is a paid advertisement.

So, what’s the big deal? The report highlights that many influencers fail to differentiate between personal opinions and brand-sponsored content. When Indian Influencers don’t disclose their ties to a brand, they blur the lines between unbiased recommendations and advertising, making it hard for followers to know what’s real. The CCPA guidelines explicitly state that any material connection—money, free products, or sponsorships—must be disclosed, ensuring that consumers aren’t misled. However, the high non-compliance rate suggests that either influencers aren’t aware of the rules or are simply ignoring them.

This could have serious consequences for the influencer marketing industry. If violations continue, stricter regulations and harsher penalties could be introduced, affecting influencers and brands that collaborate with them. Experts warn that failure to be transparent could lead to losing audience trust, something no influencer or brand can afford.

The report also stresses the importance of consumer awareness. People must spot undisclosed ads and recognize when influencers might promote something for financial gain. Regulators, brands, and social media platforms are also urged to take more decisive action to ensure these rules are followed.

Transparency is key. Indian Influencers who continue to ignore the rules might face backlash from authorities and their followers. Losing trust in social media can be the beginning of the end.