Bombay High Court Seeks Centre’s Policy on Influencer Advertising
- ByAdmin --
- 31 May 2025 --
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The Bombay High Court has recently sought a detailed response from the Central Government regarding the regulation and oversight of influencer advertising on social media platforms. This move highlights growing judicial concern about transparency, consumer protection, and the ethical standards surrounding digital endorsements.
Background
Social media influencers have become a powerful marketing channel, promoting products and services to millions of followers. However, the lack of clear regulatory guidelines has raised issues regarding misleading advertisements, undisclosed sponsorships, and consumer deception.
Petitions brought before the Bombay High Court questioned the adequacy of existing laws in governing influencer marketing and protecting consumers from false claims or undisclosed paid promotions.
Court’s Observations and Directions
- Need for Clear Policy Framework
The Court underscored the importance of a comprehensive and uniform policy from the Centre to regulate influencer advertising effectively, ensuring transparency and accountability.
- Consumer Protection Concerns
It noted the potential harm to consumers from misleading advertisements, stressing that endorsements should be truthful and clearly disclose any commercial relationships.
- Responsibility of Influencers and Brands
Both influencers and the companies they promote must adhere to ethical advertising practices to maintain consumer trust and comply with legal standards.
- Submission of Response
The Court directed the Centre to provide its official stance and any existing or proposed regulations governing influencer advertising.
Relevant Legal Provisions and Guidelines
- Consumer Protection Act, 2019
Empowers authorities to act against unfair trade practices, including false or misleading advertisements.
- The Information Technology Act, 2000
Regulates digital content and intermediaries, applicable to social media platforms hosting influencer content.
- Advertising Standards Council of India (ASCI) Code
Provides voluntary guidelines for truthful advertising, including disclosures for influencer marketing.
- The Cable Television Networks (Regulation) Act, 1995
Regulates content broadcast, extended to digital platforms by evolving judicial interpretation.
Implications of the Court’s Initiative
- For Influencers
Clear guidelines will help influencers understand their legal obligations, reducing risks of penalties and reputational damage.
- For Advertisers and Brands
They will be required to ensure compliance with disclosure norms and advertising standards, fostering responsible marketing.
- For Consumers
Enhanced transparency and truthful advertising will empower consumers to make informed choices.
- For Regulatory Authorities
The response from the Centre could lead to formal rules or amendments, strengthening regulatory oversight of influencer marketing.
Conclusion
The Bombay High Court’s call for a clear policy on influencer advertising reflects the judiciary’s proactive role in addressing challenges posed by digital marketing. Establishing well-defined legal and ethical standards will benefit all stakeholders—protecting consumers, guiding influencers, and ensuring accountability in the fast-evolving social media ecosystem.
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