The government is now paying attention to influencers and celebrities who have left their impact on social media. In reality, the center will publish new rules governing sponsored marketing for social media content providers who are active. which makes a provision for a significant fine. Despite the Advertising Standards Council of India’s current regulations, these new standards have been announced (ASCI).
The advertising watchdog last year made it essential for influencers to label promotional content. People connected to ASCI claim that this government action may have broad ramifications. India is experiencing a rapid expansion of influencer marketing.
Strictness after disturbances related to crypto platform
According to content creator Aayush Shukla, there was a great need for the government to take such action because it would encourage regulation and promote transparency in light of the recent glitch involving cryptocurrency exchange platforms, where withdrawals were halted and even the RBI cracked down on trading apps like Octa FX.
Most complaints against social media influencers
The government censured cryptocurrency exchanges for improper advertising last year. Particularly during the T20 World Cup, when the cryptocurrency brand was heavily promoted on TV and online. As a result, many cryptocurrency platforms have paused their marketing efforts. Additionally offered were ASCI rules for regulating cryptocurrency-related advertising. These significant guidelines governing Virtual Digital Assets (VDA) were effective on April 1.
Heavy fines will be imposed
A fine of between Rs 10 lakh and Rs 50 lakh will be imposed on influencers and YouTubers who violate the newly announced guidelines by the Consumer Protection Authority (CCPA). There is a high probability that these new rules will be implemented in the upcoming days. Social media influencers and content producers are paid by a lot of brands to advertise their products.
According to the suggested rules, social media influencers who accept payment from brands to promote their goods must disclose their affiliation with those companies.