ASCI Cracks The Whip On Finance & Health Influencers With Additional Guidelines

The Advertising Standards Council of India (ASCI) has revised its influencer advertising guidelines to place additional responsibility on health and finance influencers.

“The guidelines have been amended in keeping with the rapidly evolving nature and extensive impact of digital platforms. Inaccurate and deceptive advertising content in categories such as banking, financial services and insurance (BFSI), and health and nutrition products and services, could significantly impact consumer well-being and financial security,” ASCI said.

According to the amended guidelines, financial influencers, often referred to as ‘finfluencers’, operating within the BFSI realm will require registration with the Securities and Exchange Board of India (SEBI) to provide investment-related advice. Their registration numbers should be conspicuously displayed alongside their names and qualifications.

For other financial advice, influencers must possess appropriate credentials like a license from the Insurance Regulatory and Development Authority of India (IRDAI), qualifications as a chartered accountant, or a company secretaryship, among others.

Similarly, influencers endorsing health and nutrition products need to possess relevant qualifications, such as medical degrees or certifications in nursing, nutrition, dietetics, physiotherapy, psychology, based on the nature of advice or content they provide. They will also require to disclose their qualifications prominently.

On visual content, credentials and registration details should be visibly and upfrontly presented and in the case of textual content, they should be upfront before the consumer reads the post. In audio content, these details should be mentioned at the beginning.

“As losses to consumers could be substantial and serious due to improper advice in the categories of health and finance, it is necessary that influencers in these two critical categories are qualified to provide advice and that these qualifications are stated upfront, whenever they put out such advertising posts,” Manisha Kapoor, CEO and secretary general of ASCI, said.

“A “one size fits all” approach can be dangerous in these areas and consumers should only follow the advice of qualified experts when engaging with brands or products in these categories. Unlike celebrities whom consumers clearly know the fields they belong to, they may not necessarily know which influencers have the necessary qualification and expertise to provide the right advice and also inform them of any associated risks,” Kapoor added.

Recently, the Department of Consumer Affairs also released additional guidelines for celebrities, influencers and virtual influencers presenting themselves as health experts or medical practitioners.

As per the guidelines, these influencers would be required to give clear disclaimers when sharing health-related information, or promoting products or services.

Earlier this year, the Ministry of Consumer Affairs also released new endorsement guidelines for social media influencers, making them liable to fines up to INR 50 Lakhs if not adhered to.

The size of the social media influencer market in India stood at INR 1,275 Cr in 2022 and is expected to grow at a CAGR of 19-20% to reach INR 2,800 Cr by 2027, the Department of Consumer Affairs Secretary Rohit Kumar Singh had said earlier.