Lok Sabha Question No. 970 (UNSTARRED), answered on 2023-02-08
Subject: Study of Earnings of Influencers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Manish Tewari

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 970

TO BE ANSWERED ON 08.02.2023

## STUDY OF EARNINGS OF INFLUENCERS

## 970. SHRI MANISH TEWARI:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether it is a fact that the new guidelines on endorsements by influencers entails fines from Rs. 10 Lakh to as high as Rs. 50 Lakh;
- (b) if so, the details thereof including the number of influencers/online content creators earning more than Rs. 10 lakh a year;
- (c) whether the Government undertook any study or research to ascertain the earnings of influencers/ online content creators, if so, the details thereof and if not, the reasons therefor;
- (d) whether these  guidelines  are  also  applicable  to  those  who  endorse  low  value  items  and  may  not have the revenue to pay such hefty fines, if so, the details thereof; and
- (e) whether any impact assessment of the Guidelines on smaller content creators was undertaken before issuing the said Guidelines, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ( lk/oh fujatu T;ksfr )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

(a) to (e) : In exercise of the powers conferred by Section 18 of the Consumer Protection Act, 2019, the Central Consumer Protection Authority has notified Guidelines for Prevention of Misleading Advertisements  and  Endorsements  for  Misleading  Advertisements,  2022  on  9th  June  2022,  with  the objective to curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements. According to these Guidelines, endorser includes an individual or a group or an institution making endorsement of any goods, product or service in an advertisement whose opinion, belief, finding or experience being the message which such advertisement appears to reflect.

These Guidelines state that due diligence is required for endorsement of advertisements such that any endorsement in an advertisement must reflect the genuine, reasonably current opinion of the individual, group or organisation making such representation and must be based on adequate information about, or experience with, the identified goods, product or service and must not otherwise be deceptive. It clarifies that where, Indian professionals, whether resident in India or otherwise, are barred under any law for the time  being  in  force  from  making  endorsement  in  any  advertisement  pertaining  to  any  profession,  then, foreigner  professionals  of  such  profession  shall  also  be  not  permitted  to  make  endorsement  in  such advertisement.

In case of false or misleading advertisement, as per section 21(2) of the Consumer Protection Act, 2019, CCPA may impose fines on manufacturer or endorser upto Rs. 10 lakhs or Rs 50 lakhs in case of repeated violations.

*****