With the creator economy poised to grow into a Rs 2,200 crore strong industry in the next two years (as per GroupM), the space has become the cynosure of all eyes. But with growth also comes reports of violations and frauds.

To curb such flagrant practices, the Advertising Standard Council of India (ASCI) along with government bodies is making a concerted effort by enforcing guidelines for self-regulation.

Yet, in its Annual Complaints Report 2022-2023, ASCI revealed some unsettling information regarding influencer infractions after reviewing 7,928 ads. Instances of violations of influencers reached an all-time high of 26% with 2,039 complaints during the time period. The most common influencer-related breaches were found in the personal care, food & beverage, and fashion and lifestyle categories.

Given the number of violations, it begs the question of whether much is getting lost in translation despite ASCI’s guidelines. Is there a communication gap that’s leading to these infractions?

A rejection of guidelines?

Viren Sean Noronha, Co-Founder, of The New Thing says, “A running joke is that ASCI is the Voldemort of marketing. But it's not a communication gap; it's a rejection of guidelines at the core. It’s because they disrupt the user experience on social. This is a valid concern, as guidelines must integrate seamlessly with the channel and maintain a positive user experience.

Noronha argues that the current shape and form of ASCI guidelines make paid partnerships “stand out like a sore thumb.”

“If branded content doesn’t blend seamlessly with your organic feed, it’ll fall into the same blind spots that performance marketing assets do,” he points out.

Noronha also notes that the real gap is the compulsion to use over tags and callouts of paid promotions, despite platforms offering native ways to declare promos. “Channels are constantly evolving. Why shouldn’t a guideline about them evolve along with them?”

“We would be happy to work with the regulatory bodies on enforcing the rules,” says Viraj Sheth, Co-Founder & CEO at Monk Entertainment (Monk-E), who asserts that the onus of enforcing rules and regulations rests with all parties involved.

He adds a caveat: “The communication also needs to be more regular in nature if these are to be followed thoroughly like is the case with rules and regulations in any and all industries."

Dhruv Sheth, CEO- Keeda Media and Partner - Kulfi Collective and Ex-OML, believes that some violations in the beginning are unavoidable in any case. “I think any new law that is applied will have a series of violations in the beginning due to lack of information and lack of knowledge of due process. I don’t think there is malice from any party to violate the rules. In my view, the crucial metric to monitor is the recurrence of rule violations, and efforts should be focused on establishing guidelines to rectify that.”

According to Preety Singh, Co-Founder and Managing Director of Boomlet Group, the sector is in a developmental stage and even the guidelines that have been introduced are relatively new. “Certainly, there is a pressing need for improved communication of these rules and guidelines. All influencer marketing agencies and influencers should work together to generate awareness for adhering to these guidelines. The most effective way to mitigate violations is through comprehensive awareness and education efforts”, she added.

Since the guidelines differ according to the sectors, some communication gap is bound to happen, according to Shivam Agarwal, Co-founder, Kromium. “Yes there is a communication gap. Guidelines differ sector-wise but agencies have clients across sectors.”

Together for the greater good

To bring some semblance of order in this chaotic ecosystem, ASCI and the government should adopt a collaborative approach, say experts. The unanimous thought is that it’s easy to point out mistakes but what actually helps prevent these mistakes is collaboration and helping each other towards a greater goal.

Dhruv Sheth says, “The most effective approach in engaging with brands and influencers is to communicate on their own terms. There hasn't been a designated figure to correctly illustrate the guidelines and demonstrate their practical application in everyday business. That would be the most helpful - to talk to brands and influencers in a format that makes it easier for them to understand and thus comply.”

In a similar vein, Viraj Sheth also recommends a collaborative approach. “I would suggest they work seamlessly with brands and the decision makers in these companies to ensure better implementation of these regulations. If there is more advocacy amongst these stakeholders and more interactions with the ASCI team, they will open up to these regulations more and ensure that they are enforced in all of their future campaigns.”

He also notes that while the rules are not being completely followed by everyone in the industry, there is still quite a big uptick in terms of implementation of ASCI regulations.

“As an existing player in this ecosystem, I am happy to chime in whatever capacity possible to assist the ASCI team to spread more awareness on this,” he states.

Singh recommends that the government initiate campaigns that would serve as benchmarks for the influencer marketing ecosystem. “Such campaigns could greatly assist influencers, brands, and agencies in establishing clear parameters within which they can create innovative campaigns that align with the guidelines. As of now, raising awareness and setting benchmarks are crucial,” she avers.

“What could also help is a single cohesive document stating laws for different industries,” adds Agarwal.

Rules for thee, but not for me?

An industry insider, on the condition of anonymity, said that errant agencies also deserve a rap on the knuckles like brands and influencers do: “I believe even the agencies handling them should be questioned. ASCI needs to hold them accountable.”

The insider contends that creators or celebs may be unaware of the guidelines, unlike the agencies. They are responsible for guiding their clients, hence, the lion’s share of the blame for violation should be borne by the agencies. “I believe that it is these agencies don’t take the rules seriously because they are not held accountable at all. Either way, they get their business irrespective of the guidelines.”

While advertisers and influencers bear the brunt of the violations, do the agencies who execute the campaigns and whose duty it is to adhere to the rules escape unscathed?

Manisha Kapoor, CEO and Secretary General of ASCI says, “Agencies work on briefs created by clients who give the final approval. Of course, they need to be responsible and under the law; agencies are also held accountable.” She also states that the laws for agencies are outlined in the Consumer Protection Act 2019.