Liability of Influencers in Misleading Advertisements
- Legal Amenity
- Sep 7
- 3 min read
Introduction
Social media has become a powerful platform for marketing. From Instagram and YouTube to Twitter and LinkedIn, influencers drive consumer choices through product endorsements and brand collaborations. While influencer marketing has grown into a billion-dollar industry, it has also raised concerns about misleading advertisements.
What happens if an influencer promotes a product that turns out to be deceptive or harmful? Can influencers be held legally liable for endorsing false claims?
In India, the law has started recognizing the liability of influencers in misleading advertisements, imposing duties and penalties to protect consumers. This blog explains the legal framework, responsibilities of influencers, and consequences of violating advertisement laws.
Legal Framework Governing Influencers in India
1. Consumer Protection Act, 2019
The Consumer Protection Act, 2019 (CPA) explicitly addresses misleading advertisements. Under Section 2(28), a misleading advertisement is defined as one that gives false information, conceals important details, or misleads consumers about the nature, substance, or quality of a product.
Key points under the Act:
Endorsers (including influencers) can be held liable if they promote misleading claims.
Penalties:
First offense – up to ₹10 lakh fine.
Repeat offense – up to ₹50 lakh fine and ban from endorsements for up to 3 years.
The Central Consumer Protection Authority (CCPA) has the power to investigate and impose penalties.
2. ASCI Guidelines for Influencer Advertising (2021)
The Advertising Standards Council of India (ASCI) issued guidelines to regulate influencer advertising:
Influencers must clearly disclose paid promotions using labels like #ad, #sponsored, #collaboration.
Disclosures should be visible, upfront, and not hidden in hashtags.
Influencers are expected to verify the claims of the products they endorse.
While ASCI guidelines are self-regulatory, they are widely enforced and often relied on by regulators and courts.
3. Other Applicable Laws
Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 – prohibits promotion of certain drugs or products with unverified claims.
Food Safety and Standards Act, 2006 – influencers endorsing food products must ensure claims are scientifically backed.
Information Technology Act, 2000 – liability may arise for spreading harmful or fraudulent content online.
Liability of Influencers in Misleading Advertisements
1. Duty to Disclose Paid Partnerships
Influencers must disclose when their content is sponsored. Failing to disclose creates an impression of organic recommendation, which is misleading.
Example: If an influencer promotes a skincare product without mentioning it’s a paid promotion, consumers may believe it is an honest review, which violates ASCI and CPA norms.
2. Verification of Claims
Influencers cannot simply rely on the brand’s word. They have a responsibility to ensure that the product claims are not false.
Promoting a “miracle weight loss drink” without scientific proof can make influencers liable.
Endorsing unverified medical products may attract criminal penalties.
3. Liability under CPA and Penalties
Influencers may face fines, bans, and reputational damage.
For repeat offenders, CCPA may prohibit endorsement activities for up to 3 years.
4. Shared Liability with Brands
While brands remain primarily responsible, influencers are treated as co-promoters. Both can be penalized for misleading ads.
Case Studies & Examples
CCPA Notice to Celebrities: The CCPA has issued notices to several celebrities and influencers for endorsing misleading health products.
ASCI Actions: Influencers failing to disclose paid partnerships have faced public warnings and delisting of content.
Global Context: In the US, the Federal Trade Commission (FTC) has fined influencers for non-disclosure of sponsorships—India is moving in the same direction.
Best Practices for Influencers
To avoid legal liability, influencers should:
Always use proper disclosure tags (#ad, #sponsored, #collab).
Ensure accuracy of product claims before endorsement.
Avoid promoting products restricted under law (alcohol, tobacco, miracle cures).
Maintain transparency with followers to build trust and compliance.
Challenges in Enforcement
Many influencers operate across borders, complicating jurisdiction.
Micro-influencers often lack awareness of laws.
Monitoring millions of posts daily is difficult for regulators.
Despite these challenges, authorities are increasingly vigilant, and penalties are becoming stricter.
Conclusion
The rise of influencer marketing has blurred the lines between genuine content and advertising. Laws such as the Consumer Protection Act, 2019 and ASCI guidelines make it clear that influencers are not just content creators but responsible endorsers. Transparency, honesty, and compliance are not just ethical obligations—they are legal duties.
Influencers must realize that their words and endorsements directly impact consumer decisions. Non-compliance can result in fines, bans, and reputational harm. Staying compliant not only safeguards influencers legally but also builds long-term credibility.
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FAQs
Q1. Can influencers be fined for misleading ads in India?
Yes, under the Consumer Protection Act, influencers can face fines up to ₹10–50 lakh and bans from endorsements.
Q2. Do influencers need to disclose all paid promotions?
Yes, ASCI mandates clear and visible disclosure of all sponsored content.
Q3. Who is liable in misleading influencer ads—the brand or the influencer?
Both can be held liable; influencers are treated as co-endorsers under Indian law.
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