SOCIAL-MEDIA INFLUENCERS & PAID PROMOTERS – IS IT A FAUSTIAN BARGAIN?
By Jawahar Lal1 & Aastha Sachdeva2
Introduction:
The growth of internet, coupled with digital innovations led to global connectivity, and instantaneous access to knowledge, unprecedented in human civilization; of course, whether it has resulted in corresponding wisdom is a debatable issue!
Information is available in a nanosecond, search engines have become the new-age Gods, omnipotent and omnipresent; subject to connectivity. Our life would come to an end is axiomatic, but courtesy “Cloud” our data will live for eternity, so we have become immortal!
Internet provides easy access to knowledge (denied to most, across civilizations & religions for centuries), changing our lives. Internet based distant learning has made education accessible to large sections of global population and research has become less arduous. Remote employment has become the norm, COVID-19 pandemic giving it a thrust. Internet has revolutionized daily tasks like banking, E-commerce. Telemedicine etc., and life has become easier!
With the exponential growth of internet, social media platforms mushroomed, visiting us with unmanageable challenges. “In this world there are only two tragedies. One is not getting what one wants, and the other is getting it" (Oscar Wilde), applies with equal force to ‘access to information’, courtesy internet.
Privacy has lost its meaning, cybercrimes, cyber-bullying, harassment etc., pose an unsurmountable challenge to law enforcement. Also, digital addiction has drastically reduced productivity, attention span, focus, significantly creating social & individual psychological issues.
Now, life is equated to ‘living’ on social media platforms, our identity, our life, et al. Interpersonal interaction is nearly extinct, disrupting personal relationships. Today, social media provides endless engagement, and it can keep us engaged for life, for eternity!
Influencers’ 3 Play Book:
The huge volume of unverified internet content makes it impossible to sift facts from fiction & fantasy! A 30-second Instagram Reel influences common man’s behaviour & choices, more than a news item or a well-researched article. Rational thinking has been substituted, and most believe the information on the internet, to be the Gospel Truth!
Public opinion is no longer shaped by journalists, economists or public institutions. Today, India is home to one of the world's largest and most dynamic Social-Media Influencer (Influencer) ecosystem.4 What began as a niche medium for lifestyle recommendations, has evolved into an unbridled force, determining financial decisions, health choices, personal preferences, and even political, social, and religious belief systems. Evidently, information does not foster knowledge without analysis and understanding, and that is commonly reflected today.
The grip of Influencers, on consumer choice is phenomenal, and many Influencers do not adopt direct marketing of products, by setting out the attributes of the Product, or provide comparative advantage of Products, sought to be promoted by them.
Widely adopted, albeit unethical, practice is to rundown the market leader in the segment, through videos on Instagram, YouTube, Facebook, X etc., then indirectly promote sponsored products either through the same or subsequent video(s).
Influencers pick the main attribute of a product (which influences consumer choice), for instance, consumers purchase a dietary supplement for its nutritional content & health benefits. Influencers pick up the lead dietary supplement brand, run it down indirectly or even brazenly, make statements that the product is unhealthy, deleterious to health etc. Then they pick up the product marketed by them (directly or indirectly), and claim that it is the best dietary supplement in the market. With limited attention span, social media viewers immediately accept the statements of Influencers, and alter their choice.
Even if Influencers do not promote a particular brand, negative posts exponentially increase traction among viewers, consequently getting them revenue. Social media accounts on Instagram, YouTube, Facebook and X have become income generating avenue; for some it is a side hustle, and for many others it is the sole source of income. Hence, negative dissemination of information has become a business model.
Influencers, per the Bombay High Court in Marico v. Abhijeet Bhansali5 (“Marico”), are individuals who command substantial followings and credibility within their respective domains, leverage the goodwill reposed in them by their audiences to influence purchasing decisions, endorse causes, and shape public opinion. The Delhi High Court in Zydus vs Mr Prashant Desai,6 recognised Influencers as individuals who are/ claim to be credible persons of interest, with backing from sources of own with substantial base across the globe. Courts have acknowledged that 'Social Media Influencers' can leave a significant impact on humanity and if not backed by reasons, and it would backfire.
Current regulatory framework & its limitations:
Despite judicial recognition of Influencers, existing regulations are highly inadequate, fragmented/ diffused across statutory provisions, self-regulatory codes, platform-specific policies etc., resulting in accountability gap, failing to protect public interest.
Unlike other professionals, Influencers are not required to register with any regulatory authority, there is no Code of Conduct etc. The Bombay High Court in Marico, recognised that Influencers command substantial trust and credibility among their followers; therefore, bear a heightened obligation to ensure the accuracy and truthfulness of the information they disseminate.
The Advertising Standards Council of India (“ASCI”), introduced the Guidelines for Influencer Advertising in Digital Media in June 2021. However, ASCI Guidelines do not and cannot be legally enforced against Influencers and Advertisers, who are non-members of ASCI; hence it is toothless tiger!!
Parallel, the Indian Influencer Governing Council, a self-regulatory body for Influencers, has issued Code of Standards, 2025, encouraging voluntary labelling practices such as “#Admiration” for content reflecting genuine personal appreciation without commercial linkage. It would apply only to Influencers, who are members; hence has limited application.
The Department of Consumer Affairs, (“DoCA”), Ministry of Consumer Affairs, has issued Endorsements Know-Hows! 2023, regarding disclosure awareness among celebrities, Influencers, and virtual Influencers. However, these are recommendatory/ self-regulatory mechanism; hence legally unenforceable.
Complementing these self-regulatory mechanisms, the Central Consumer Protection Authority (“CCPA”), under the Consumer Protection Act, 2019, has issued Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, which are binding in nature, and extend to Influencers as “endorsers”, imposing liability for misleading advertisements7.
Further, the Dark Patterns Guidelines, 2023 issued by the CCPA, under Section 18 of the CPA, 2019 are mandatory for platforms, advertisers, and sellers offering goods or services in India. It seeks to reinforce transparency in digital advertising by prohibiting deceptive interface practices, including disguised advertisements presented as organic content such as vlogs or lifestyle posts.
Consequences of lack of regulatory oversight:
The fragmented approach in lack of regulatory oversight, raises two significant concerns, First, absence of ex ante regulation, Influencers are not required to register with any authority, follow a code of conduct, undergo compliance training, undertake to adhere to standards, maintain records of endorsements, etc. Second, enforcement remains diffused across multiple agencies, resulting in uncertainty, inconsistent compliance standards, and diluted accountability.
Though, the scope of ASCI is limited to regulating its Members, reference is made to ASCI complaint mechanism to show the negative impact of Influencers. Under Influencer Guidelines, ASCI had processed 6,124 complaints against Influencers as of 31.01.20258. ASCI found 69% to be in violation of disclosure requirements. 56.8% involved absence of disclosure, 43.2% involved disclosures that were buried or insufficiently prominent.
Per ASCI’s Annual Complaints Report in FY 2025-26, it reviewed 11,581 cases relating to 9,841 advertisements, 98% requiring some modification. Digital media accounted for 97.3% of advertisements scrutinised for potential violations, with 82% comprising sponsored content on social-media platforms. Meta platforms alone accounted for 79.84% of digital violations9.
Civil Remedy: In several cases, the affected party approaches the Civil Court seeking restraint orders. Before the case is heard and interim orders granted, the offending video would have been watched by millions, causing irreparable damage to their reputation/ product.
Bridging the Regulatory Vacuum: Way Forward:
Voluntary codes and post-facto enforcement have proved insufficient, and the problem is not mere absence of regulations, but the absence of effective ex ante oversight. By the time a misleading endorsement is detected, examined and acted upon, the content would have been viewed/shared, and believed to be factually correct, by millions. A misleading financial recommendation, an unverified health claim or a misleading advertisement creates negative impact, which cannot be undone merely through subsequent modification, takedown or penalty.
Therefore, we need a comprehensive statutory framework governing commercial activities undertaken by Influencers, prescribing mandatory benchmark for registration, code of conduct, disclosure norms, accountability and enforcement.
Such legislation must propose compulsory registration of Influencers falling, with a designated statutory authority, to oversee. Registration should require disclosure of basic particulars, like categories of products/services ordinarily promoted and an Undertaking to comply with applicable advertising regulations, consumer-protection laws, Code of Conduct etc. A unique registration number should be required to be displayed on the Influencer’s social-media profile and posts.
Such ex-ante regulation is neither novel nor impracticable. The Bar Council of India (“BCI”), by Circular dated 17.07.2026, has dealt with social-media conduct by Advocates, law students, interns, legal content creators etc., providing for institutional monitoring and reporting mechanisms, formation of State Bar Council Digital Ethics Committees/Nodal Groups and an online complaint mechanism. The Committees are empowered to receive complaints, seek explanations, counsel first-time/ minor violators, seek voluntary deletion, correction/ disclaimer, and place serious or repeated violations before the competent authority under the Advocates Act, 1961 and the BCI Rules.
On similar lines, disclosure obligations of Influencers about paid partnerships and “material connection” should cease to be matters of mere voluntary compliance and be given statutory force. Influencers should be required to clearly disclose commercial relationships, maintain records of endorsements and consideration received (directly or otherwise) etc. Regulations should provide for enhanced due diligence by Influencers, on sensitive sectors like health, nutrition, financial services and products directed at children, where a reckless or unsubstantiated claim can cause consequences considerably, more serious than an erroneous purchasing decision.
Regulation without consequences is no regulation at all! Hence, the Regulator must have the power to impose graded monetary penalties proportionate to the nature, gravity, reach and frequency of the violation. Minor lapses may invite warnings or corrective directions; deliberate non-disclosure, misleading endorsements, unsubstantiated claims, and repeated violations must attract substantial monetary consequences and even cancellation of registration, disentitling them to act as Influencers. Such powers should be exercised in compliance with principles of natural justice and a reasoned order should be passed, providing for an appellate remedy.
Accountability cannot be confined to Influencers alone. Advertisers who commission, pay or otherwise incentivise Influencers must bear consequences for claims made, undertake due diligence, retain substantiation for claims, and be prohibited from engaging Influencers whose registration has been suspended or cancelled. Similarly social-media platforms must be required to facilitate conspicuous disclosure of paid promotions, preserve prescribed records and comply with directions for correction, disclaimer or removal of offending content, by the Regulator.
The law must move from chasing violations to preventing them. The object is not to make opinions subject to license or silence free speech, but to ensure that free speech is exercised with responsibility & oversight, within the framework of the Constitution of India.
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Managing Partner at J-Law Offices, Delhi. Author can be reached at: jawahar@JLaw.in
Associate at J-Law Offices, Delhi. Author can be reached at: aastha@JLaw.in
Refers to Influencers & Paid Promoters
The State of Influencer Marketing in India (EY, April 2024) https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/media-entertainment/ey-state-of-influencer-marketing-in-india-03-04-2024.pdf
2020 SCC OnLine Bom 60
2024 SCC OnLine Del 7018
Consumer Protection Act, 2019, § 21.
ASCI, Top Influencer Compliance Scorecard 2025: Compliance Review of Forbes Top 100 Digital Stars in India (February 2025).
ASCI, Annual Complaints Report 2025–26 (May 2026).
