Why in News?
- The Centre has notified endorsement guidelines for celebrities and social media influencers that mandate mandatory disclosure of monetary or material benefits of a product or a brand they are promoting through their social media platforms.
About ‘Endorsement’-
- Endorsements are a type of advertising that uses well known personalities or celebrities who command a high degree of recognition, trust, respect, or awareness among the people.
- Advertisers and clients hope such approval, or endorsement by a celebrity, will influence followers favourably.
- For instance, Sachin Tendulkar endorsing motorcycles and biscuits can influence young men or children who look up to him as a role model.
About New Guideline for Enforcement on Social Media-
- Disclosure Norms- Disclosures must be prominently and openly displayed in the endorsement and terms like ‘advertisement’, ‘sponsored’ or ‘paid promotion’ should be used for all sorts of endorsements.
- It aims to ensure that individuals do not deceive their audiences through unfair trading practices when endorsing products/services and that they are in compliance with the Consumer Protection Act 2019 and any associated rules or guidelines.
- Disclosures should not be mixed with a group of hashtags or links. Even, during live stream, disclosures should be displayed nonstop and prominently during the entire stream on social media.
- Penalty- If there are any contraventions, the penalty prescribed for misleading advertisements under the Consumer Protection Act 2019 will be applicable.
- In this incident, the Central Consumer Protection Authority (CCPA) can impose a penalty of up to ₹ 10 lakh on manufacturers, advertisers and endorsers and for repeated offences, a penalty of up to ₹ 50 lakh can be imposed.
- The CCPA can also ban the endorser of a misleading advertisement from making any endorsement for up to one year and for subsequent contravention, prohibition can extend up to 03 years.
Benefits of Social Media-
- Democratization of Information- Social media is permitting the democratization of knowledge and broader communication. Today Billions of netizens around the world feel empowered to bypass traditional curators of information.
- They have also become creators and disseminators of content, not just consumers of it.
- Direct Interaction with Government- Nowadays social media has empowered common people to directly interact with the government and access government services directly.
- For instance, a common person tagging Railway and other ministries and the agencies responding to them is common news these days.
- Encourage Creativity and Self-expression- Social media gives a platform for users to share their ideas, thoughts, and creativity with the world.
- Increased Customer Engagement- Social media permits businesses to engage with their customers in a way that was not possible before, allowing for more personalized and better customer service.
- This is a cost-effective way for businesses to market and advertise their products and services.
Challenges Related to Social Media-
- Misleading Advertising- Social media platforms are usually used to advertise products and services, but some businesses use false advertising, which is an unfair trading practice.
- Social media platforms are also used to post product reviews by influencers, but some reviews may be fake, which can be misleading to consumers and also a breach of fair-trading practices.
- Cyberbullying and harassment- Social media has become a nursery for Cyberbullying and harassment, leading to mental health issues and even suicide in some cases.
- Privacy Concerns- Social media platforms collect and store large amounts of personal data/information, raising concerns about privacy and data security.
- Lack of Regulation and Polarisation- Social media platforms operate with little regulation, which can give rise to harmful content, fake news, and hate speech.