Advice or endorsement? ASCI's revised guidelines give a breather to health, finance influencers

Technical or promotional

The guidelines seek to draw a distinction between generic promotions and the promotion of technical aspects of a product or service, which consumers are likely to interpret as expert advice, the advertising regulator added.

If an insurance company asks an influencer to talk about the need for annual health check-ups or a health food player ties up with a chef or food blogger to promote a meal service, such ads will be considered generic, ASCI said.

In the 2023 update to the guidelines, the regulator called for financial credentials for financial influencers aka finfluencers and relevant qualifications such as a medical degree for health influencers.

Marketers argue that not every post is expert advice and most of the time, it’s just about spreading awareness or sharing experiences.

The updated standards are a way to protect consumers and keep up with an ever-evolving digital landscape, said Manish Kumar, founder, Videos4Businesses.

The blurred line between “advice” and “endorsement” may leave consumers vulnerable without stronger enforcement, Saurabh Sankpal, the chief creative head at Wit & Chai Group, said.

Lower compliance

Not many influencers have been complying with the guidelines.

"Expecting a food blogger or a finance creator to pause and showcase qualifications with every single post wasn’t really practical. That’s why the older rule, though well-meaning, ended up being missed quite a bit in real-world execution," Deepmala said.

There have been major instances where endorsements lacked necessary qualifications or were not substantiated, Kumar said.

"The industry at large had varying degrees of awareness and adherence to the qualification disclosure requirements. In some cases, influencers, especially in emerging categories, were not fully equipped to distinguish between general promotion and technical advice," said Sayak Mukherjee, the co-founder of influencer marketing agency Creatorcult.

In its FY24 report, the regulator said healthcare was a sector of concern with regard to misleading advertisements. It accounted for 19 percent of total cases.

It had looked 1,575 advertisement, out of which 99 percent required modification. As many as 1,249 were processed for violating the Drugs and Magic Remedies (Objectionable Advertisements) Act. Of the remaining 326, 190 ads were from clinics/hospitals/wellness centres making misleading claims about their services, care and cure to chronic conditions. There were 129 ads from pharma companies for drugs and medicines with claims around prevention and cure, superior quality and leadership. Medical supplies and health apps constituted the remaining seven ads.

Initial hitches 

Influencer marketing agencies expect revised guidelines to create confusion, at least in the beginning.

According to Mukherjee, for influencers engaged in providing technical advice in the BFSI and health & nutrition spaces, the updated guidelines mark a significant shift.

These creators will need to have and disclose appropriate qualifications, ensuring greater credibility in consumer communications, he added.

"There might be a little bit of ‘Am I just talking or actually advising?’ moments for creators. Creators will have to understand – “Is this general talk or technical advice?” But honestly, it’s better to deal with a little confusion than to work under a rigid rule," Deepmala said.

Whenever new guidelines are introduced, there is often an initial phase where creators and brands seek greater clarity, Mukherjee said.