ABSTRACT
Influencer marketing has transformed how people make purchasing decisions. Initially, what began with bloggers giving product recommendations in their YouTube videos has now turned into an economy where trust is the real currency, but also the main risk involved. The essay aims to analyse the risks involved for consumers when they engage with influencer advertisements. Social Media Influencers operate at the thin line between genuine recommendations and sponsored collaborations, which can create ambiguity for followers scrolling through such content. The ambiguous and misleading nature of such advertisements can lead to some serious consequences for the consumer getting influenced by them. India has tried to keep up with such dynamic circumstances with laws like the Consumer Protection Act, 2019 and the ASCI guidelines which lay down a framework, that holds brands and endorsers accountable. However, this paper argues, that the central deficiency is not an absence of legislation but a gap in enforcement and consumer awareness. The main issue lies in the implementation of those legislations and the dearth of real consumer awareness. Until that gap is bridged, any legal frameworks established would remain futile.
KEYWORDS
Influencer marketing; Consumer Protection Act, 2019; misleading advertisements; ASCI guidelines; consumer rights; digital endorsements.
INTRODUCTION
In the age of the social media algorithm, influencers are the new celebrities. From giving product recommendations to becoming a brand’s favourite marketing tool, their influence has come a long way in the last decade.
With the emergence of technology and social media platforms, the realm of marketing has undergone a complete transformation. Today, influencers are not common people anymore; their voices and choices hold the power to influence the public opinion just like any conventional celebrity.
The field of influencer marketing is evolving faster than ever, and by 2027, the global influencer marketing industry is projected to expand to an estimated $480 billion. [1]
This shift has enabled brands to reach global audiences with unprecedented speed and efficiency, while consumers now have greater access to products and services than was earlier possible.[2]
RESEARCH METHODOLOGY
This paper adopts a doctrinal method of legal research. It relies primarily on the analysis of statutory text, the Consumer Protection Act, 2019 read alongside other regulatory guidelines such as the Guidelines for Influencer Advertising in Digital Media issued by the Advertising Standards Council of India (ASCI). The study also uses secondary sources, including peer-reviewed academic articles relevant to influencer marketing, consumer protection law in India, and the psychological and commercial aspects of social media endorsements.
REVIEW OF LITERATURE
Ekinci et al. traces the evolution of influencer marketing, projecting the industry to be worth close to $480 billion by 2027. This aims to establish that influencer marketing to the future of advertising.
Mukherjee looks at influencer marketing within India’s broader e-commerce and digital advertising landscape, and points to a problem that the law has not kept pace with the speed at which the industry has grown.
Hudders and Lou trace the history in more depth, showing how influencer marketing grew out of bloggers to now, brands being involved. Their research also presents findings which have turned this theoretical debate into a question of real consumer harm.
Okonkwo and Namkoisse focus on how influencers build a sense of authenticity with their followers, and why that matters so much. On the psychological side, Ekinci et al. talk about the detrimental effects of such advertisements on people, also providing evidence of the same.
On the legal side, Meenakumary S’s work on the Consumer Protection Act, 2019, walks through the six consumer rights under Section 2(9), what the CCPA can actually do, and how the penalties for misleading advertisements are structured.
Put together, this paper sits somewhere in between, connecting influencer marketing with its related legalities. It talks about what the marketing research says about consumer harm with what the law actually allows consumers to do about it.
INFLUENCER ADVERTISING
Influencer marketing involves collaboration between brands and individuals- commonly referred to as influencers- who have cultivated a substantial following on platforms such as Instagram, YouTube, TikTok, and Twitter.[3]However, this is not how this phenomenon actually started.
In the early days, bloggers, who shared their opinions and provided relevant information, tips, and advice in domains like fashion, food, or fitness in blogs, started to attract a large audience. The huge popularity of this new form of user-generated content got quickly noticed by marketers and incited them to use those bloggers as their new marketing tool. [4]
Influencer marketing is a modern marketing strategy that harnesses the popularity, credibility, and reach of individuals who have established a significant presence on social media platforms. These influencers are seen as opinion leaders within specific niches such as fashion, fitness, technology, travel, beauty, food, finance, etc. [5]
The popularity of these influencers on the internet is not random. It is based on the idea of an ‘economy of trust,’ wherein such individuals first build a community through their content, a part of which involves product reviews and recommendations, in their area of expertise. Over time, these influencers gain the trust of their followers which gives their endorsements a level of credibility that traditional advertisements often lack. This contributes to the success of brand campaigns, converting the influencer’s followers into potential consumers of the brand. Authenticity and trust have become key factors in influencer selection, as audiences sought genuine connections between influencers and the products they promoted. [6]
As a result, influencer marketing has emerged as a powerful and cost-effective tool for product promotion, brand building, and customer engagement. [7]
According to a recent survey, 60% of consumers trust online recommendations from social media influencers (SMIs), with these endorsements influencing nearly half of all purchasing decisions. Hence, companies are increasingly enlisting social media influencers to promote their brands and products, focusing more on fostering long‐term partnerships rather than relying on one‐off collaborations. [8]
Initially, influencer marketing was closely aligned with celebrity endorsements, where well-known figures from various fields would endorse products or brands. However, it has since evolved to encompass a broader range of influencers.[9] Their reach and influence vary considerably, ranging from “nano” or “micro” influencers with smaller, more intimate followings to “macro” influencers who boast massive audiences across multiple platforms.[10]
CONSUMER RISKS ASSOCIATED WITH INFLUENCER ADVERTISING
As influencers become entangled in brand partnerships and sponsorships, the authenticity of their endorsements often diminishes. The lines between genuine advocacy and commercial motivation blur, creating ambiguity for consumers. On the positive side, influencers have helped brands scale to another level and reach a wider audience, but on the dark side, this transition has also led to various risks and detrimental effects for consumers. Such consumer risks include: –
The promotion of harmful products by these influencers, which, if consumed without oversight or vigilance, can perpetuate unhealthy behaviours in such followers, such as drug or alcohol use, leading to adverse effects on one’s physical health.
A content analysis of endorsements of two YouTube influencers who are popular among children has shown that more than 90% of their videos contained a food or beverage cue, and these food cues were more often unhealthy than healthy, and this led to a higher intake of unhealthy snacks among children (aged 9 to 11 years).[11]
Creation of unrealistic beauty standards- Other concerns for consumers could be the creation of unrealistic beauty standards, which occurs when influencers showcase their ‘perfect’ bodies online. This gives rise to comparison culture among followers who develop an aspiration of having the same bodies, without being able to see beyond the façade of lighting, makeup, and camera angles, exacerbating issues related to body image dissatisfaction, low self-esteem, and mental health challenges, particularly among impressionable young audiences.
Studies have discovered that exposure to bare‐chested and idealized muscular images on Instagram led to significantly lower body satisfaction among men compared to viewing clothed fashion images or scenery images, which showed no difference between them. [12]
Fostering of deceptive consumption practices– Some SMIs are involved in fostering deceptive consumption practices through buying followers or promoting products without disclosing paid partnerships. Such unethical behavior erodes trust and integrity both among influencers and followers. Occasionally, SMIs also promote counterfeit luxury goods, illegal products, or banned substances. These endorsements pose twin risks. They help proliferate illegal activities and expose followers to legal and health injuries, perpetuating a culture of dishonesty and disregard for regulations while undermining consumer trust and safety. [13]
Alongside the above-mentioned concerns, ethical concerns, particularly around transparency and integrity, also arise when influencers fail to clearly distinguish between organic content and sponsored advertising.
First and foremost, the audience may perceive the influencer’s endorsement as disingenuous, eroding trust in the influencer and, by extension, the sponsoring brand. This can lead to a loss of credibility for both the influencer and the brand, impacting their reputations in the eyes of their respective followers and consumers. In the long term, a lack of transparency may deter consumers from engaging with an influencer’s content and could even result in a loss of followers. [14]
Another concern that arises is the violation of consumer rights by means of misleading advertisements or promotions.
MISLEADING ADVERTISEMENTS AND ITS LEGAL CONSEQUENCES
The Consumer Protection Act, 2019, defines “misleading advertisements” as advertisements that:
- Falsely describes a product or service,
- Gives false guarantees and misleads consumers about its nature, substance, quantity, or quality
- Deliberately conceals important information,
- Conveys an express or implied representation, which if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice. [15]
When advertisers engage in misleading or false advertising, consumer choice is affected because consumers are unfairly convinced to believe in the messages of the advertisers, which affect their judgment. Misleading advertising either compels consumers to purchase items at a higher price or of lesser quality than what they wanted, or to purchase the wrong product or service. Such advertisements violate the interests of consumers by manipulating them, thus making them more vulnerable and less likely to make rational choices.
As the influence of social media and digital marketing continues to grow, Indian lawmakers and regulatory bodies have recognized the need to establish a clear legal framework to ensure that advertising, especially through influencers, is honest, transparent, and accountable. Various legal instruments and guidelines have been introduced to address deceptive marketing practices, protect consumer rights, and define the responsibilities of influencers and digital platforms. [16]
To protect the consumers against such misleading advertisements and to ensure fair practice in business, the Consumer Protection Act, 2019, has brought in an effective and elaborate regulatory framework. Section 2(9) of the act recognizes six basic consumer rights:
1. Right to Safety– The right to be protected against the marketing of goods, products, or services that are hazardous to life and property. The right extends to areas of electrical appliances, healthcare, automobiles, pharmaceuticals, housing, travel, etc. Therefore, it is necessary for manufacturers to get all their products, which have potential danger to life, carefully tested and approved before launching them in the market. [17]
2. The Right to be Informed– about the quality, quantity, potency, purity, standard, and price of goods, products, or services. This act places an obligation on the seller to provide all relevant information regarding the product to the consumer so as to protect the consumer against unfair trade practices.
3. The right to be assured, wherever possible, access to a variety of goods, products, or services at competitive prices. [18]It is the right of all consumers to purchase any product at any price that satisfies their needs and desires. A consumer cannot be compelled to purchase a product of some particular brand or quality [19]
4. The Right to be Heard– and to be assured that consumers’ interests will receive due consideration at appropriate forums. This right ensures that all consumer grievances are duly heard by appropriate authority in order to address them effectively. Many companies today have a customer service department in place to deal with any issues related to the product or service faced by the consumer.
5. Right to Seek Redressal– Consumers are vested with the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers. A consumer has the option to seek redressal in the form of compensation or damages against any such practice, under this right, to ensure that justice is duly served. Consumer forums have been set up for this very purpose at district, state, and national levels.
6. Right to Consumer Awareness– It is the right of each and every person who is a citizen of India to have the knowledge and fair understanding of all the policies relating to consumer rights and interests. [20]
The Central Consumer Protection Authority (CCPA) is established under section 10 of the Consumer Protection Act to regulate matters relating to violation of rights of consumers, unfair trade practices, and false or misleading advertisements that are prejudicial to the interests of the public and consumers and to promote, protect, and enforce the rights of consumers.
The act prescribes the composition of the central authority to include a chief commissioner and other commissioners to be appointed by the central government to exercise their powers and discharge their functions under this act.
The act lays down a penalty of up to Rs.1,000,000 (Rupees Ten Lakhs) on the manufacturer who deliberately tries to mislead or deceive consumers through such advertisements. In case of a subsequent offense, the fine may extend to Rs.5,000,000 (Rupees Fifty Lakhs).[21]
The endorsement in relation to an advertisement means any statement, demonstration, or depiction of the name, signature, or such recognizable personal characteristics of an individual having a high degree of trust, recognition, and respect in society, which greatly influences the consumers to believe the demonstrations publicized by such endorsers. [22]
ACSI Guidelines
The only regulation that existed prior to the act was the self-regulatory code of the Advertising Standards Council of India (ASCI). The Code extends to any kind of endorser, i.e., celebrity or influencer, to partake in due diligence in the claims and statements of the product or service endorsed by them so as to ensure the veracity of their claims.
Highlights of the ASCI Guidelines:
- Mandatory Disclosures: Influencers must clearly label paid content with easily visible disclosures such as #ad, #sponsored, #collaboration, or #partnership. These labels should not be hidden in hashtags or buried in captions—they must be placed prominently.
- Format-Specific Rules: In video content, disclosures must be displayed at the beginning and remain visible for a sufficient duration. For audio content, disclosures must be clearly announced at the start.
- Genuine Due Diligence: Influencers are required to verify any claims they make (e.g., “this cream reduces acne in 3 days”) to avoid misleading consumers. They cannot promote products or services they have not personally used or experienced, especially in categories like healthcare, finance, or personal safety.
- Contractual Responsibility: Influencers must ensure that their contracts with brands or agencies include clauses that allow them to comply with the ASCI Code and disclosure obligations. [23]
As per Section 21 of the CPA 2019, the CCPA is empowered to order discontinuation or modification of a misleading or false endorsement that is prejudicial to the interest of the consumer or in contravention with the consumer rights. The Authority is also empowered to inflict an appropriate penalty on the endorser of the deceptive advertisement and to prohibit him from making further endorsements of any product or service for a specific period. However, the endorser shall not be held liable if he has exercised due diligence in verifying the correctness of the claims mentioned in the advertisement regarding the product/service. [24]
In the case of Francis Vadakkan v. The Proprietor, A-One Medical & Ors.[25], the District Consumer Redressal Forum, Thrissur, ordered the makers of the Dhathri hair oil brand and movie actor Anoop Menon, who promoted the product through advertisement, to pay a compensation of Rs.10,000 each for making the false promise of “lush hair growth in six weeks”.
Here the litigant, Francis Vadakkan, alleged that he bought the hair cream for Rs.376 on seeing the advertisement and used it for seven consecutive weeks. However, there was no improvement, and the actor further testified that he had never used the hair cream and had only used the oil prepared by his mother.
Section 21 of the act ensures that companies and celebrities are more diligent when it comes to the products/service they endorse and the claims they make. [26]
SUGGESTIONS
For the effective regulation of misleading advertisements and the redressal of concerns related to transparency, ethics, and integrity, a stricter implementation of the existing laws is required. Hence, it should be the duty of the endorsers to be careful about any statements or claims they make while endorsing a product, verifying that they are true and not of a misleading nature.
Besides this, the govt. should work towards bringing new campaigns like #JagoGrahakJago, but specifically for raising awareness regarding misleading influencer advertisements to increase consumer awareness and help consumers behave in a way that is more consistent with their personal preferences. Hence, rationality in decision-making and awareness of consumer rights are the most important prerequisites for ensuring ethical consumerism.[27]
Consumer forums and regulatory bodies like the CCPA should also be encouraged to act more proactively rather than waiting for complaints, given how fast influencer content spreads and how quickly the harm can be done before any redressal is sought.
CONCLUSION
Influencer advertising is like two sides of a coin- it has a multitude of benefits for all stakeholders: the creators, manufacturers, and consumers. However, it also has a myriad of risks for consumers if not regulated in a proper manner.
India has tried to address this through the Consumer Protection Act, 2019 and the ASCI guidelines, both of which lay down a framework that holds brands and endorsers accountable. But the problem was never really the absence of legislation. The real issue lies in how these laws are implemented, and in the lack of genuine awareness among consumers about the rights they already have. Ultimately, laws will only remain plain words unless paired with effective implementation in order to fulfil the true intention behind drafting them.
NAME- Yashvi Bajaj
COLLEGE- Symbiosis Law School, Nagpur
[1] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analyzing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1201 (2025).
[2] Swarup Mukherjee, Social Media and E-Commerce: A Study of the Legal Issues in Influencer Marketing and Online Advertising With Special Reference to India, 7 International Journal for Multidisciplinary Research 1 (2025).
[3] Swarup Mukherjee, Social Media and E-Commerce: A Study of the Legal Issues in Influencer Marketing and Online Advertising With Special Reference to India, 7 International Journal for Multidisciplinary Research 1 (2025).
[4] Liselot Hudders & Chen Lou, The Rosy World of Influencer Marketing? Its Bright and Dark Sides and Future Research Recommendations, International Journal of Advertising 2 (2022).
[5] Swarup Mukherjee, Social Media and E-Commerce: A Study of the Legal Issues in Influencer Marketing and Online Advertising With Special Reference to India, 7 International Journal for Multidisciplinary Research 2 (2025).
[6] Ifeanyi Okonkwo & Emmanuel Namkoisse, The Role of Influencer Marketing in Building Authentic Brand Relationships Online, 32 Journal of Digital Marketing and Communication 82 (2023).
[7] Swarup Mukherjee, Social Media and E-Commerce: A Study of the Legal Issues in Influencer Marketing and Online Advertising With Special Reference to India, 7 International Journal for Multidisciplinary Research 1 (2025).
[8] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analyzing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1201 (2025).
[9] Ifeanyi Okonkwo & Emmanuel Namkoisse, The Role of Influencer Marketing in Building Authentic Brand Relationships Online, 32 Journal of Digital Marketing and Communication 81-82 (2023).
[10] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analyzing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1202 (2025).
[11] Liselot Hudders & Chen Lou, The Rosy World of Influencer Marketing? Its Bright and Dark Sides and Future Research Recommendations, International Journal of Advertising 4 (2022).
[12] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analyzing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1204 (2025).
[13] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analysing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1204- 1205 (2025).
[14] Ifeanyi Okonkwo & Emmanuel Namkoisse, The Role of Influencer Marketing in Building Authentic Brand Relationships Online, 32 Journal of Digital Marketing and Communication 85 (2023).
[15] Consumer Protection Act, 2019
[16] Swarup Mukherjee, Social Media and E-Commerce: A Study of the Legal Issues in Influencer Marketing and Online Advertising With Special Reference to India, 7 International Journal for Multidisciplinary Research 3 (2025).
[17] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[18] Consumer Protection Act, 2019
[19] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[20] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[21] Consumer Protection Act, 2019
[22] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[23] Yuksel Ekinci et al., The Dark Side of Social Media Influencers: A Research Agenda for Analyzing Deceptive Practices and Regulatory Challenges, 42 Psychology & Marketing, 1204-1205 (2025).
[24] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[25] Francis Vadakkan v. The Proprietor, A-One Medical & Ors, 2021
[26] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).
[27] Meenakumary S, Legal Regulation of False and Misleading Advertisements With Special Reference to Consumer Protection Act, 2019, 14 Commerce & Business Researcher 56 (2023).