Influencers could be forbidden from promoting brands for up to 6 years if they keep breaking the rules. Not only will these rules apply to famous people, but also to people who have a lot of followers on social media and online.

Rohit Kumar Singh, Secretary of the Department of Consumer Affairs in the Ministry of Consumer Affairs, Food, and Public Distribution, and Nidhi Khare, Additional Secretary of the Department of Consumer Affairs, spoke at a press conference about why the guidelines are important and what they will do.

The ministry's staff said that the rules describe how influencers on social media must 'reveal' their interconnection and back up what they say. As part of the rules, influencers must make disclosure of information in audio and video formats, as well as using the platform's disclosure tool.

They also said that people with a lot of power should be careful about how they treat customers.

According to the rules, digital personalities made by a computer would also have to tell people when they have a big deal with an advertiser.

This connection can be made with money, free products, trips, hotel stays, bartering with the media, contests, jobs, awards, etc.

Also, the rules say that endorsers should try the product or service before endorsing it and make sure that the advertiser can back up the claims made in the ad or endorsement.

The CEO and Secretary General of ASCI, Manisha Kapoor, said this about the rules: 'ASCI is glad that the Ministry of Consumer Affairs has put out rules for endorsers. We're glad to say that in 2021, they follow ASCI's rules for people who have a lot of influence. Almost 30% of the ads that ASCI buys break the rules for influencers, so it's good that the law supports disclosure rules. Kapoor said that the Ministry had talked to ASCI about how different countries have different rules about influencers.

According to the new rules, any endorser who doesn't follow the rules can be fined up to Rs 10 lakhs. If they break the rules again, they could be fined up to Rs 50 lakhs and lose their endorsements for six months to two years.

The Consumer Protection Act of 2019 protects people from unfair business practises and advertising that isn't what it seems to be.

The Central Authority for Consumer Protection (CCPA) put out Guidelines for Preventing Misleading Ads and Endorsements for Misleading Ads in June of last year.

Khare talked about how powerful or well-known people can be honest. He said that a good rule of thumb for disclosures is that they should be hard to miss, clear, and not mixed in with a lot of hashtags or links.

'If it's a picture, the disclosure about the endorsement should be on top of the picture so people can see it. It shouldn't just be said in the description; videos should also show it. But the rules say that the disclosure should be clear and easy to understand on platforms with limited space.

Khare also said that disclosures should be written in the same language as the endorsement and use words like 'advertisement,' 'ad,' 'sponsored,' 'paid promotion,' and 'paid.'

Also, the new rules say that before endorsing a product or service, the person endorsing it must have used it. They should also look at the ad and make sure that the advertiser can back up what it says in the ad.

Khare also said that serious legal action would be taken against anyone who lied about a material connection or didn't follow the Consumer Protection Act of 2019 and its rules.