New Self-Regulatory Body Introduces Standards for Influencer Marketing in India

1. In a significant step towards regulating the growing influencer marketing industry, key industry players have launched the India Influencer Governing Council (IIGC).
2. This self-regulatory body includes members from major tech firms such as Meta and Google.

What Has Been Introduced?

1. The IIGC has rolled out a Code of Standards for influencers to promote ethical and responsible content creation.
2. Additionally, a system of weekly influencer ratings has been introduced to improve transparency and accountability across digital platforms.
3. This move comes at a time when the influencer marketing industry in India is projected to grow significantly, reaching an estimated ₹3,375 crore by 2026.

Why Regulation Is Necessary

1. Preventing Consumer Misinformation and Fraud

1. Influencers often promote products or services that lack proper verification, including health supplements, financial investments, or cryptocurrency schemes.
2. Clear regulations can ensure that all claims are evidence-based, thereby protecting consumer interests.

2. Protecting Vulnerable Audiences

1. Many influencers target young, impressionable audiences, sometimes promoting age-inappropriate products like alcohol or online gambling.
2. Regulation can help impose age-based restrictions, safeguarding minors and other at-risk groups.

3. Ensuring Fair Market Competition

1. Influencer-led promotions often bypass traditional advertising norms, which are subject to stricter rules and checks.
2. Introducing standards creates a level playing field, ensuring fairness and ethical business practices.

4. Addressing Mental Health and Unrealistic Standards

1. Many influencers set unrealistic beauty or lifestyle expectations through heavily filtered or edited content.
2. Guidelines can help mitigate harmful content by mandating disclosures, warnings, or limits on visual manipulation.

5. Closing Platform Accountability Gaps

1. Social media platforms have often escaped responsibility for the content shared by influencers.
2. Regulations can compel platforms to monitor, review, and remove violative content, increasing overall ecosystem safety.