With the advent of digital marketing, the advertising sector and the legal framework governing it have undergone significant transformation. It has become increasingly difficult to distinguish between sponsored content and genuine content, particularly with the rise of new-age advertisers who operate with just a mobile phone and an internet connection. The law now faces the complex challenge of striking a delicate balance between the freedom of speech of marketers and the rights of consumers.
A new category of digital entrepreneurs, i.e. social media influencers—has emerged, playing a crucial role in shaping consumer behavior. For example, I still clearly recall that a student pursuing M.A. in psychology from Goa University distributed field surveys as part of study methods to investigate the ways in which social media and digital platforms impact traveler behavior. In fact, I recently visited a beach in Maharashtra purely based on what I saw on my Instagram feed. This exemplifies how digital media has fundamentally altered the way people interact and conduct business.
Given the power influencers wield in affecting their followers’ purchasing decisions, they are expected to exercise a higher degree of responsibility. They must perform due diligence, ensure that their opinions are current, reasonable, and based on adequate information. Moreover, whenever there is a material connection between an influencer and a product or service, it must be clearly and unambiguously disclosed to consumers, in accordance with the principles of the Consumer Protection Act and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 framed thereunder as well as principles laid down under various Judgements of Indian Courts.
So, if you’re a brand strategist or social media influencers or advertiser, LET’S TALK. I’d be happy to share my inputs.
