Posted a Paid Collab Without #ad? The Fine Can Reach Rs 10 Lakh

If a brand gave you anything for a post, India expects you to say so, clearly and up front.

• It is not just cash. Free products, gifts, trips, hotel stays, discounts and awards all count as a "material connection".
• Use plain labels such as "Advertisement", "Ad", "Sponsored", "Collaboration" or "Paid promotion".
• The label must be hard to miss: not buried in a pile of hashtags or hidden behind "more".
• The Central Consumer Protection Authority can fine endorsers of misleading ads up to Rs 10 lakh, up to Rs 50 lakh for repeat offences, and bar them from endorsing for up to three years.

Share this: send it to the creator friend who just got a PR box.

Two sets of rules apply to Indian creators.

The government guidelines were released for celebrities, influencers and virtual influencers on social media (summary of the guidelines). ASCI's guidelines apply to promotional posts published from April 2021 (Mondaq summary).

This is where most creators get caught out. You do not need to be paid in money. The government guidelines list examples including:

• monetary or other compensation
• free products, with or without conditions
• gifts, trips or hotel stays
• discounts, coverage and awards
• media barters
• equity in the brand
• a family, personal or employment relationship with the brand

If any of these could affect how your audience reads your post, it needs a disclosure. A PR package you liked enough to post about still counts.

The guidelines ask for simple, clear language, in the same language as the post. A Hindi Reel needs a disclosure a Hindi viewer understands.

Accepted: Advertisement, Ad, Sponsored, Collaboration, Partnership, Paid promotion, Paid. ASCI's guidelines list similar labels and add options such as "Employee" and "Free gift" for those situations.

Risky: #sp, #spon, #thanks, #ambassador on its own, a brand tag with no label, or "link in bio". ASCI has said blanket disclosures in a bio are not enough.

Instagram's "Paid partnership with" label is a good start and makes the connection visible on the post. Many creators also write the disclosure in the caption's first line, which keeps the post clear even when it is reshared or viewed where the label is less visible.

The rule of thumb is "extremely hard to miss". In practice:

Disclosures must not be mixed into a group of hashtags or links, where nobody reads them.

Disclosure is half the rule. The government guidelines also expect an endorsement to reflect your genuine, reasonably current opinion and to be based on adequate information about, or experience with, the product. Endorsing something you have never tried, or making claims the brand cannot back up, can make the post a misleading ad even with a perfect #ad label.

Health creators have an extra rule. Guidelines issued in 2023 ask certified medical professionals and health experts to disclose their credentials when they make health claims, and those who present themselves as health experts without being one to add a disclaimer that their content is not a substitute for professional medical advice (summary).

Virtual influencers (AI or animated characters) must also tell audiences that they are not interacting with a human being.

Undisclosed endorsements are treated under the misleading advertisement provisions of the Consumer Protection Act, 2019. The CCPA can:

• order the endorser to stop or change the ad
• impose a penalty of up to Rs 10 lakh, and up to Rs 50 lakh for subsequent violations
• prohibit the endorser from endorsing any product for up to one year, and up to three years for repeat violations

These figures are set out in the government's own release, hosted by the Department of Consumer Affairs. ASCI, separately, publishes the names of influencers whose ads break its code.

1. Did the brand give me anything (money, product, stay, discount, award)? If yes, disclose.
2. Is the label in plain words and in the same language as the post?
3. Is it visible without tapping "more", and on the image or video itself?
4. Have I used the product, and can every claim be backed up?
5. Am I making a health or money claim? If yes, add credentials or a disclaimer.

Share this: if your group chat has a creator who gets brand DMs, this checklist is for them.

Do I need #ad if the brand only sent a free product? Yes. The guidelines list free products, with or without conditions, as a material connection that must be disclosed.

Is Instagram's Paid partnership label enough? It makes the connection visible, which is what the rules want. Adding a plain "Ad" or "Collaboration" at the start of the caption and on the visual keeps the disclosure clear in every view.

Can I put #ad at the end of my hashtags? The government guidelines say disclosures should not be mixed with a group of hashtags or links. Put it first.

What is the maximum penalty for a first offence? Up to Rs 10 lakh under the Consumer Protection Act, 2019, with up to Rs 50 lakh for later violations and possible bans on endorsing.

Do these rules apply to small creators? Yes. They apply to anyone whose post can influence a buying decision because of their reach or their audience's trust, not only to celebrities.

Building a profile brands want to work with starts with consistent content. If you want a head start on visibility, compare the current Instagram services; we only ever need a public link.