K for Kaleidoscope: Influencers & brands defying guidelines with impunity
From baby care products to cars and cryptocurrencies, countless brands are promoting their ads through influencers without disclosing brand associations, ignoring ASCI and GoI guidelines
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Published: Sep 26, 2024 8:09 AM | 4 min read
Recently, the Advertising Standards Council of India (ASCI) took suo moto notice of an Instagram post by nano-influencer Shilpa Thakur promoting a baby wash without any disclosure of her paid partnership. With just 15,000 followers, Shilpa’s post wasn’t merely an oversight; it was a blatant violation of ASCI and Government of India guidelines for influencer advertising.
This wasn’t a one-off incident — at least a dozen other influencers joined the fray, promoting various products of the same company without disclosures. Incidentally, Mamaearth was crowned the “top advertising violator” for 2023-2024, racking up a staggering 187 ad violations, most of which revolved around influencer shenanigans.
But they’re not alone in this circus. Brands like Domino's, Skoda, Volkswagen, Realme, Xiaomi, Marks & Spencer, L'Oréal, Nykaa, LG Electronics, Levi Strauss, Adidas, Myntra, Bitbn, and Belfris Cryptex have also found themselves in ASCI’s crosshairs for their not-so-ethical influencer marketing antics.
By the way, these cases are merely the tip of the iceberg. With their limited resources, the ASCI can not monitor the vast ocean where hundreds of influencer firms are swimming with millions of creators.
At this point, we might as well call influencer marketing a “group project” where everyone fights for glory but dodges responsibility!
Micro-Nano-Hyperlocals
While ASCI has previously called out film stars and cricketing legends for misleading ads, the real stars of today’s violations are the micro, nano, and hyperlocal influencers, say industry executives.
In FY24 alone, ASCI reviewed over 10,000 advertisements, with nearly 3,000 of those being Instagram ads. A staggering 1,700 (21%) of those were influencer violations, all thanks to the kind of creativity that would make a scam artist proud.
So, why are these guidelines failing to rein in the chaos? It’s simple: blatant disregard for transparency. This isn’t just unethical; it’s a slap in the face to consumers who deserve honesty. Despite overwhelming evidence, ASCI lacks the teeth to impose real penalties. That honour falls to the Central Consumer Protection Authority (CCPA), which can impose fines of up to Rs 10 lakh for initial offences — though, fun fact, not a single incident of CCPA imposing fines on influencers has been reported so far. It’s almost like they’re playing hide-and-seek with accountability.
Manisha Kapoor, CEO & Secretary General of ASCI, acknowledges the chaos. She points out that while compliance has improved—89% of influencer ads processed in 2023-24 adhered to ASCI recommendations—there’s a growing army of influencers who don’t even know the guidelines exist. And with the vast diversity of influencers, compliance becomes a Herculean task.
ASCI is doing its best to bridge the gap with workshops and certifications. They’ve even teamed up with Google, Meta, and Amazon to spread the word about responsible advertising practices. But let’s be honest: does anyone really pay attention?
No brand or influencer above the law
The CCPA needs to step up its game. It’s time to show that no brand or influencer is above the law. Consumers deserve accountability, and it’s about time these rogue marketers faced the music for their deceptive practices. However, since the CCPA doesn’t publish its decisions, it’s a mystery what’s actually happening on the enforcement front.
With the festive season around the corner, brands are preparing to splurge on influencer marketing to promote their latest offers. Here’s hoping the Government of India takes proactive measures to safeguard consumers’ interests.
The issue of fake followers/bots is also huge. According to a report by Klug Klug early this year, only 2.48 million influencer profiles out of 8 million audited by them exhibited credible followers. The followers of the rest of the profiles consisted of around 60% bots. Tech platforms also need to pull up their socks and devise a way to address this issue.
With India’s influencer marketing industry expected to hit Rs 5,500 crore in 2024 as per a report by Influencer.in, it’s crucial to ensure that this growth isn’t built on a foundation of deception.
In a world full of filters, it’s time for the truth to shine through—no matter how unflattering it may be.
(The writer is a Senior Editor and Group Editorial Evangelist at exchange4media; Views expressed are personal)
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