ASCI tightens noose around health and financial influencers

The Advertising Standards Council of India (ASCI) has revised its advertising guidelines and has placed additional responsibility on health and finance influencers.

Financial influencers, commonly referred to as ‘finfluencers’, operating within the banking, financial services and insurance (BFSI) space, can now offer investment-related advice only after being registered with the Securities and Exchange Board of India (Sebi). Their registration number must be prominently displayed alongside their name and qualifications.

For other financial advice, influencers must possess appropriate credentials such as a license from the Insurance Regulatory and Development Authority of India (IRDAI), be qualified as a chartered accountant, hold a company secretaryship etc., ASCI said. These influencers are expected to adhere to all disclosure prerequisites as stipulated by financial sector regulators from time to time, the ad regulator added.

Moreover, influencers who endorse products that make claims on health and nutrition must also hold relevant qualifications such as medical degrees or certification in nursing, nutrition, dietetics, physiotherapy, psychology etc., depending on the nature of the advice provided. Such qualifications must be disclosed prominently, the ad regulator said.

“As losses to consumers could be substantial and serious due to improper advice in the categories of health and finance, it is necessary that influencers in these two critical categories are qualified to provide advice and that these qualifications are stated upfront, whenever they put out such advertising posts. A “one size fits all” approach can be dangerous in these areas and consumers should only follow the advice of qualified experts when engaging with brands or products in these categories,” said Manisha Kapoor, chief executive officer and secretary general at ASCI.

Kapoor said that unlike celebrities, who consumers clearly know the fields they belong to, a consumer may not necessarily know which influencer has the necessary qualification and expertise to provide the right advice and inform them of associated risks. “To safeguard consumers from the consequences of advice from non-experts, these additional requirements should now be followed by health and financial influencers,” Kapoor said.

ASCI had introduced the guidelines initially in May 2021 to help consumers identify promotional content and make informed decisions on products or services. The ad regulator said that they have updated the guidelines to keep up with the rapidly evolving nature and extensive impact of digital platforms. Inaccurate and deceptive advertising content in categories such as BFSI and health and nutrition products and services, could significantly impact consumer well-being and financial security.

The disclaimer requirements for health and finance influencers include disclosure of qualifications and registration/certification details prominently in all types of promotional material. The disclosures should be superimposed on the visuals prominently and upfront, or mentioned as the opening remark in videos.

For blogs or any text-based posts, the disclosures should be stated upfront before the consumer has to read the post. In the case of podcasts or a purely audio medium, disclosures should be called out at the beginning of the advertising content.

On August 11, the Department of Consumer Affairs had extended its influencer guidelines to mandate additional disclosures while endorsing health and wellness products and services. Influencers found to be in violation of the guidelines could face penalties under the Consumer Protection Act (2019). Moneycontrol