Mumbai: In May 2021, influencer guidelines were put in place with regard to helping consumers identify promotional content and make informed decisions on products or services. Last week, the Advertising Standards Council of India (Asci) altered its influencer advertising guidelines to place additional responsibility and keep a check on the advertising content of health and finance influencers.

With the issues of health and finance being of grave significance, it is essential that correct and useful information is imparted by health and finance influencers.

A note by Asci stated that the guidelines have been amended in keeping with the rapidly evolving nature and extensive impact of digital platforms. Inaccurate and deceptive advertising content in categories such as banking, financial services and insurance (BFSI), and health and nutrition products and services, could significantly impact consumer well-being and financial security.

The note further mentions that financial influencers, commonly referred to as ‘finfluencers’, operating within the BFSI realm, 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, holds a company secretaryship, etc. Moreover, they are expected to adhere to all disclosure prerequisites as stipulated by financial sector regulators from time to time.

Similarly, influencers that endorse products that make claims on health and nutrition must 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, says the note.

Disclaimer requirements for health and finance influencers:

The influencer must disclose their qualifications and registration/certification details prominently in all types of promotional material:

• Superimposed on the visuals prominently and upfront, or mentioned as the opening remark in videos
• For blogs or any text-based posts, they should be stated upfront before the consumer has to read the post
• In the case of podcasts or a purely audio medium, they should be called out at the beginning of the advertising content

It may be noted that on August 11, 2023, the Department of Consumer Affairs also 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).

Indiantelevision.com spoke to influencer marketing agencies to gauge their opinion about these guidelines, and how they think these would affect the projects taken up by health and finance influencers in the long run.

Industry opines

KlugKlug co-founder and chief product officer Vaibhav Gupta brings out, “The new guidelines introduced by Asci (Advertising Standards Council of India) regarding health and finance influencers seem to be a positive step in the right direction. They acknowledge the need for influencers to exercise responsibility, especially in areas like health and finance where accuracy is crucial. These guidelines attempt to strike a balance between allowing influencers to share their experiences and opinions while safeguarding consumers from potentially misleading or false information. It's essential to prevent the misuse of regulations and to maintain fairness. The distinction between being an expert and sharing personal experiences is challenging, but these guidelines prioritize the responsibility of the endorsing brand and emphasize truthfulness in claims. The evolving nature of these regulations may require adjustments, but they underline the importance of consumer protection.”

Whoppl founder Ramya Ramachandran feels that in industries like health & finance, it's important for influencers to possess relevant qualifications. “Without credentials, offering advice or opinions on these topics can be misleading or inaccurate. Authenticity plays a pivotal role in influencer marketing—genuine expertise in the subject matter is what garners followers and meaningful interactions. These guidelines mitigate the risks associated with misinformation and ensure that only individuals with legitimate qualifications can provide information about products or services.”

“Influencer marketing revolves around presenting a brand's message in a clear and relatable manner. The introduction of guidelines is warranted because people tend to trust influencers. For instance, a financial influencer without practical investment experience lacks credibility in offering investment advice. On the flip side, someone well-versed in financial regulations and investment strategies holds more weight in guiding followers. These specific guidelines focus on industries where expertise matters, such as finance and health. They make sure that influencers possess the necessary qualifications to give informed recommendations, which is crucial in areas involving transactions and sensitive issues,” she goes on.

Boomlet Group co-founder and CEO Danish Malik points out, “The introduction of new guidelines by ASCI will safeguard the interest of consumers while making the influencer marketing ecosystem more transparent. However, the implementation of these guidelines will be a challenge for ASCI, there is a need for the introduction of penalties along with self-regulatory guidelines for the segment, which will make the influencer community follow the rules more carefully. With stringent penalties in place, brands and agencies will make it mandatory for influencers to adhere to the rules and regulations. There is a need for more case studies and learnings on events to raise awareness among the micro and nano influencers.”

Pollen (Zoo Media) business development manager Samiksha Mehta thinks that it is great that these strict guidelines have been put in place. “I have always believed in the line "with more power comes more responsibility" and the ASCI guidelines could result in a more responsible and informed influencer ecosystem in the fields of health and finance. Influencers will need to ensure their claims are backed by credible qualifications, which will ultimately benefit their audience by promoting accurate and reliable information.”

The effect on health and finance influencers taking up their projects

Malik of Boomlet Group is of the thought that the current method of profile selection criteria for campaigns will be affected for brands in the health and finance sectors, the costs will tend to increase. “This increase will be a result of certification and degree requirements introduced, Influencers that have the relevant degrees and qualifications might increase their charges. If brands still want the same without that or want to do a subtle integration without direct shoutouts then there is a scope of gray area that will arise which will be a bigger challenge than the current one to tackle.”

As per Mehta of Pollen, the introduction of new guidelines by ASCI could have several effects on how these influencers approach their projects such as:

• Increased Accountability: Influencers will need to provide evidence of their qualifications before making claims related to health and finance. This will hold them more accountable for the information they share with their followers and discourage the spread of misinformation.
• Transparency: Influencers will need to be transparent about their expertise and qualifications in their respective fields. This transparency can foster trust among their followers and help them make more informed decisions based on credible information.
• Reduced Misinformation: With influencers required to substantiate their claims with relevant qualifications, there could be a reduction in the spread of misleading or false information. This is particularly important in fields like health and finance, where inaccurate advice can have serious consequences.

Ramachandran of Whoppl elucidates, “The new guidelines encourage influencers to share their qualifications, establishing legitimacy and transparency for consumers. This approach resonates positively with consumers who want to know the basis of the information being provided. The mandate also compels influencers to be more cautious and responsible in their content. Many professionals, like dieticians and mental health coaches, are now showcasing their certifications in their bio, further boosting credibility.

In light of these guidelines, influencers can still engage in non-sensitive promotional activities within their industry expertise.”

Gupta of KlugKlug remarks, “The new ASCI guidelines are likely to impact how health and finance influencers approach their projects. Influencers in these fields will need to be more cautious about the claims they make, ensuring they align with truthful information. The guidelines could lead to increased accountability, making influencers think twice before endorsing products or services. Paid partnerships might see more stringent requirements, ensuring brands are responsible for the accuracy of the information being promoted.”

“The regulations might also influence the way influencers present disclaimers and information to their audiences, aiming for transparency. However, these guidelines might also pose challenges in differentiating between personal opinions and expert advice, and in monitoring compliance effectively. While the impact might vary, the guidelines intend to bring a sense of responsibility and accuracy to health and finance influencer collaborations,” he wraps up.