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2020 APR   17

Regulating Social media influencers

2023 JAN 24

Mains   > Society   >   Features of Indian Society   >   Social media

IN NEWS:

  • The Department of Consumer Affairs released a guide ‘Endorsements Know-hows!’ for celebrities, influencers and virtual influencers on social media platforms.

SOCIAL MEDIA:

  • Social media are interactive technologies that allow the creation or sharing/exchange of information, ideas, career interests, and other forms of expression via virtual communities and networks.
  • It can be categorized into six types:
    • Joint projects like Wikipedia
    • Blogs like Twitter
    • Content Communities like YouTube
    • Social Networking Sites like Facebook, Whatsapp
    • Effective Game Worlds like World of War craft
    • Virtual Social Worlds like Second Life.
  • Social media is different from traditional media in a sense that it has a broader reach, allows two-way conversation and immediate exchange of information, is generally free of cost and lacks any entry barriers

STATISTICS:

  • Around the globe, there are more than 4 billion active social media users and the number is growing by 9% annually.

  • The number of social network users (social media and messaging apps) in India is projected to grow by over 400 million, breaching the 1 billion mark by 2025.

INFLUENCERS:

  • An influencer is an individual who has substantial control over the behaviour of others. They have a sizable following, and their audience tends to be influenced by their choices, opinions, and decisions.
  • When they have a large following on social media and their circle of influence lies on the platform they use, these are called social media influencers.

Influencer marketing:

  • The process of endorsing or promoting particular products by an influencer is known as influencer marketing.
  • Influencers are paid to promote the brand, believing that their recommendation will prompt the audience to buy the products.
  • While launching the guidelines, the consumer affairs department said that the size of the influencer market in India is Rs 1,275 crore.
  • It is expected to reach Rs 2,800 crore by 2025 with an annual growth rate of 19-20 per cent.

THE NEW GUIDELINES:

  • The ‘Endorsements Know-hows!’ guidelines aim to ensure that individuals do not mislead their audiences when endorsing products or services and that they are in compliance with the Consumer Protection Act and any associated rules or guidelines.
  • Its features include:
    • Any celebrity, influencer, or virtual influencer with an access to influence audience and their purchasing decisions must disclose any material connection to the advertiser.
    • Disclosures include monetary or other compensation, trips or hotel stays, media bartering, coverage and awards, free products with or without conditions, discounts, gifts, and any family, personal, or employment relationship.
    • Endorsements must be made in simple, clear language, and terms like 'advertisement,' 'sponsored,' or 'paid promotion' are permitted.
    • The celebrity or influencer should not endorse any product or service that has not been thoroughly researched by them or that they have not personally used or experienced.
    • Failure to abide by the guideline will attract a penalty up to Rs 50 lakh.

NEED FOR REGULATION:

  • Protect consumers:
    • The mushrooming of influencers without proper legal attention can lead to the growth of unlawful/exploitative advertising practices. This might lead to significant losses for customers.
  • Larger outreach:
    • Influencers relationship with followers is more intimate than celebrities’ because it is built through constant and direct interactions. Hence, their ability to influence the purchasing decision of followers are stronger, which mandates proper regulatory guidelines.
  • Prevent misinformation:
    • The informal nature of influencer marketing brings the dangers of misrepresentation, miseducation and deceptive marketing. Such deceptive advertising techniques are disastrous, especially when influencers promote health products.
  • Tackle fraudulent activities:
    • Fraudulent influencers, fake followers and social media bots have raised questions over the authenticity of influencers. Regulations can help weed out such fraudulent activities and protect genuine influencers.  

Deceptive marketing is the use of false and/or misleading information to capture the attention of the consumer through the usage of false information to persuade buyers into a business transaction.

Fraudulent influencers are those who create social media posts alleging that the content is sponsored by a business, but in reality, is not. They leverage these pretend deals in order to secure real contracts with other businesses.

Fake followers are multiple social media accounts created by the same person or group and sold in bundles to increase an influencer's total follower account, which is a metric often used by brands to gauge how much influence a person has, and therefore, how much to pay them.

  • Empower customers:
    • Often, influencers do not disclose that they are paid to promote a product. Hence, it is becoming increasingly difficult for the average social media user to distinguish a genuine post from a sponsored one, thereby undermining their ability to make informed decisions.
    • Regulations can help overcome this information barrier by improving transparency.
  • Promote ethical behaviour:
    • Under the new guidelines, influencers should not endorse any product or service and service in which due diligence has been done by them or that they have not personally used or experienced. This ensures an amount of accountability on them.
  • Address security concerns:
    • Non-state actors may pose as influencers to utilise the social media landscape and promote illegal activities such as drug abuse, radicalization and child pornography, etc. To alleviate such fears, effective regulation is essential.
  • Adopt global best practices:
    • Regulations for influencers is being implemented in many countries. For instance, in the US, influencers are required to disclose if a post contains paid promotions and influencer marketing falls under advertising laws and regulations.
  • Ensure fair elections:
    • Influencers are being used in political campaigning. For instance, Joe Biden used influencers during his elections. Hence, proper regulations are essential to ensure that elections remain free and fair.

OTHER REGULATIONS:

  • The Information Technology Act, 2000
    • The Act de?nes ‘Intermediary’, and Social Media platforms, as such fall under the de?nition of intermediaries and are required to follow ‘due diligence’ as prescribed under the IT Rules
  • Guidelines for social media/Intermediaries under IT Rules 2021:
    • Categories of Social Media Intermediaries:
      • Based on the number of users, on the social media platform intermediaries have been divided in two groups: Social media intermediaries and significant social media intermediaries.
    • Due Diligence to be followed by intermediaries:
      • In case, due diligence is not followed by the intermediary, safe harbour provisions will not apply to them.
    • Grievance redressal mechanism is mandatory:
    • Ensuring online safety and dignity of users:
    • Need to appointments:
      • Chief Compliance Officer
      • Nodal Contact Person
      • Resident Grievance Officer >> all of whom should be resident in India.
    • Compliance Report:
      • Need to publish a monthly compliance report mentioning the details of complaints received and action taken on the complaints as well as details of contents removed proactively.
    • Enabling identity of the originator:
      • Significant social media intermediaries providing services primarily in the nature of messaging shall enable identification of the first originator of the information.
    • Removal of Unlawful Information:
      • An intermediary, upon receiving actual knowledge in the form of an order by a court/appropriate Govt or its agencies, should not host or publish any information which is prohibited under any law.
  • Initiative from Judiciary
    • The Supreme Court of India issued the directions to the print, electronic or social media to maintain a strong sense of responsibility and ensure that unveri?ed news capable of causing panic is not disseminated.
    • The Supreme Court has struck down the controversial Section 66A of the Information Technology Act, 2000 that made posting "offensive" comments online a crime punishable by jail, as being unconstitutional and against free speech
  • Initiatives taken by election commission
    • In the 2019 elections, The Election Commission of India has issued instructions on social media use during election campaigns that require candidates
      • To provide certain information about their social media accounts
      • Obtain pre-certi?cation or approval of their political advertisements
      • Report expenditure on campaigning through the internet, including via social media websites.
  • Other steps taken:
    • The government has urged the Internet Service Providers (ISPs) to block access to child pornography websites and also requested them to educate its subscribers about the use of parental control ?lters on devices via messages, emails, invoices, websites and more.

PRACTICE QUESTION:

Q. Discuss the ethical issues involved in influencer marketing?


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