ASCI widens definition: Influencers with 500K+ followers now recognised as celebrities

A TikToker who creates content around beauty. It is estimated that 44 percent of TikTok’s American users are under 25 (compared with 16 percent of Facebook’s). (Representational image: AFP/Getty Images)

The Advertising Standards Council of India (ASCI) has revised its definition of celebrities in its code to now encompass social media influencers who have amassed a following of 500,000 or more.

According to the advertising regulator, historical notions of celebrities predominantly comprised popular actors and sports personalities who could lend credibility to brands and sway large audiences.

However, the emergence of social media influencers in recent times has established new hubs of mass influence. Thus, ASCI found it necessary to broaden its definition of celebrities to encompass such influencers.

The updated ASCI code now defines celebrities as individuals who either receive compensation of Rs 40 lakh annually (or its equivalent value) for their appearances in advertisements across various media formats or possess a social media following of 500,000 or more on a single social media platform.

The Consumer Protection Act of 2019 places the onus of due diligence on all endorsers, whether they are recognized celebrities or not. Nevertheless, ASCI points out that due to the disproportionately significant influence wielded by individuals with substantial follower counts, celebrities need to demonstrate greater responsibility to ensure their followers are not deceived or misled.

ASCI has observed a notable surge in misleading advertisements featuring celebrities, with over 500 such instances occurring in 2022-23, compared to 55 in the preceding year of 2021-22. This indicates that despite their legal obligations, several celebrities persist in featuring in ads that make false or deceptive claims.

Manisha Kapoor, CEO and Secretary General of ASCI, highlights that the definition of celebrities has transformed dramatically with the advent of social media and the growing influence of digital media influencers. Previously, only figures from sports and entertainment were considered celebrities. However, the current landscape includes a variety of personalities who possess substantial popularity on social media and maintain a close personal rapport with consumers.

These figures significantly impact consumer spending habits and engender trust. Kapoor emphasizes the importance of safeguarding consumer interests, especially when celebrities endorse products or services that could lead to financial loss or physical harm. The updated definition broadens ASCI's scope to encompass all influential personalities.

The ASCI code encompasses specific guidelines for celebrities, requiring them to conduct due diligence to substantiate and verify claims made in advertisements. Celebrities are obliged to provide evidence of their due diligence when requested. Alternatively, advertisers must have developed the advertisement in line with ASCI's advertising guidance.

Furthermore, the ASCI code stipulates that celebrities should not participate in advertisements for products, treatments, or remedies that are prohibited from advertising under the Drugs & Magic Remedies (Objectionable Advertisements) Act of 1954, as well as the revised Drugs & Cosmetic Act of 1940 and Rules of 1945 (Schedule J).