Over the last decade, influencer marketing and online advertising have taken a centre stage for the digital economy, as they are redefining the brand-consumer communication panorama. This huge shift has been taxing for the Ministry of Information and Broadcasting (MIB), which has sought increased readiness for a regulatory mechanism. The government aims for clarity, accountability, and consumer protection; such a move symbolizes a beginning of resolving various touchpoints that mark the changes occurring in the digital advertisement ecosystem.
With the meteoric rise of social media platforms such as Instagram, YouTube, and TikTok, there is an emergence of a new breed of marketers known as “influencers.” They are positioned as extremely important intermediaries for brands trying to convey their marketing messages to their targeted audiences. However, this rapid growth has not been without its pitfalls. Standards are not set in such an evolving system, making it hard to ascertain the ethos that would guide the marketing methodologies being employed by the influencers and the brands; this is against mere deception which would uphold both the ethos and the veracity.
Core Provisions Of The New Framework
Under expanded functions because of the revised Allocation of Business Rules that became effective in July 2023, MIB started the process of formulating rules specific to online advertisements. The present wide-ranging rules would also cover influencer marketing, bringing it under the aegis of the ministry along with that of the digital news publisher’s content and the OTT platforms.
The salient point about these regulations is that the Self-Declaration Certificate (SDC) will now be required for advertisements. From the first orders made by the Supreme Court in May 2024, again, it will place upon the advertiser the onus of declaring that the advertisement does not consist of false representation and complies fully with other regulations of the state. To allay certain concerns about the practicality of its implementation in the fast-paced digital environment, the ambit has been narrowed down to food and health products alone.
There is a further veil on this regulatory landscape, the MIB Digital Advertisement Policy, which was to be brought into play on November 2023. The policy makes the Central Bureau of Communication (CBC) responsible for managing digital media campaigns completely. This decision is intended to allow for competitive bidding for the rates of ads besides respect of the principle of ethics, which is a step towards bringing transparency into the advertising ecosystem.
Sponsored content now has a requirement to be tagged as #Ad, #Sponsored, or #PaidPartnership. Besides ensuring ease of differentiating between organic and paid content, this disclosure is also a test to the effect of misleading advertisements. Misleading advertisements are absolutely forbidden; false, unsubstantiated, or exaggerated claims are not allowed to be made by either the influencers or the advertisers. The endorsements must be based on scientific evidence or personal experiences. Marketing being targeted towards children, or mediated through child influencers, will face closer scrutiny. Other rules include curtailing the exploitation of child influencers through strict protections.
For compliance enforcement, the MIB is encouraging platforms to introduce third-party verification mechanisms. By the intervention of independent agencies to audit the ad campaigns and influencer activities, this would act as a guarantee for compliance with the guidelines.
Challenges & Future Complications
While these new laws mark a step further, adapting them continues to pose a number of challenges. Awareness and knowledge of the same are important, especially for the micro, nano, and other influencers who may not be very familiar with the regulations. This gap could be bridged through more workshops and training.
Platform accountability is also of great importance. The social media platforms should work alongside the MIB in effective monitoring and reporting of violations. Striking the balance between regulation and creativity is also an important consideration. Over-regulation could smother innovation, so it should be ensured that adherence to compliance does not come at the cost of creative expressions.
Needless to say, issues like barter deals, whereby influencers receive products rather than money, have to be taken care of and require unambiguous guidelines.
Conclusion
It was informed to the Parliament’s Standing Committee on Communications and Information Technology that the Ministry of Information and Broadcasting (MIB) would be scripting an entire new chapter in the digital journey of the country commencing from January 2025. The regulations are expected to offer a clear roadmap towards accountability, transparency and consumer welfare, assisting a healthy and ethical advertising ecosystem.
This development serves as a caution that with great influence comes great responsibility. The effectiveness of these rules will ultimately depend on how well all stakeholders engage with each other in reaching it. A thriving digital advertising space that benefits all but protects consumer interest against the greater complexity of marketplace dynamics is the goal.
Authors: Mahima Gupta & Smita Pandey