Published on: January 21, 2023

Promotions on social media

Promotions on social media


purchase prednisone Why in news?   cenforce antibiotic purchase The Department of Consumer Affairs under Ministry of Consumer Affairs, Food and Public Distribution released a guide ‘Endorsements Know-hows!’ for celebrities, influencers and virtual influencers on social media platforms


Highlights

  • It aims to ensure that individuals do not mislead their audiences while endorsing products/services and are in compliance with the Consumer Protection Act.

Why  “Endorsement Know-hows!” ?

  • It emphasises the increased risk of consumers being misled by advertisements and unfair trade practices by some individuals on social media platforms.

What are main endorsement guidelines ?

  • Any celebrity, influencer, or virtual influencer with an access to influence audience and their purchasing decisions must disclose any material connection to the advertiser.
  • A product, service, brand, or experience may be the subject of the advertisement or promotion.
  • Disclosures include monetary or other compensation, trips or hotel stays, media bartering, coverage and awards, free products with or without conditions, discounts, gifts, and any family, personal, or employment relationship.
  • Endorsements must be made in simple, clear language, and terms like ‘advertisement,’ ‘sponsored,’ or ‘paid promotion’ are permitted.
  • The celebrity or influencer should not endorse any product or service that has not been thoroughly researched by them or that they have not personally used or experienced.
  • The new guidelines are in alignment with the Consumer Protection Act, of 2019, that was enacted to protect consumers from unfair trade practices and deceptive advertising.

Penalty

  • In case of violations, the penalty prescribed for misleading advertisements under the Consumer Protection Act 2019 will be applicable.
  • Central Consumer Protection Authority (CCPA) can impose a penalty of up to Rs 10 lakh on manufacturers, advertisers and endorsers and for repeated offences, a penalty of up to 50 lakh can be imposed.
  • The CCPA can also prohibit the endorser of a misleading advertisement from making any endorsement for up to one year and for subsequent contravention, prohibition can extend up to three years.