How Influencers Can Avoid Legal Trouble: Essential Tips for a Safe Social Media Journey

Recent legal actions against popular brand influencers have raised concerns about what’s acceptable in social media promotions. As influencer marketing becomes a sought-after career for young people, understanding the rules and laws involved is crucial. Here are key issues every influencer should keep in mind to navigate their social media journey safely.

Legal Warnings for Influencers

This month, the Directorate of Enforcement (ED) issued notices to top influencers like Saurav Joshi and Elvish Yadav for promoting Hibox, an app linked to a ₹500 crore investment scam. These influencers endorsed a product they may not have fully understood, reminding us how vital it is to do thorough research before agreeing to any promotion.

In another case, the Delhi High Court ordered Prashant Desai to take down videos criticizing the sugar content in Complan, a popular health drink. The court emphasized that if you give advice, you need to have the facts to back it up. Missteps like this can damage your reputation and finances.

These instances serve as a reminder that being influential comes with significant responsibility.

Importance of Due Diligence

Influencers should start by familiarizing themselves with the Advertising Standards Council of India (ASCI) guidelines. These rules emphasize the need for due diligence—if you’re promoting a product, make sure your claims are accurate, especially in sensitive sectors like health and finance. Endorsing something without proper knowledge could lead to legal trouble under the Consumer Protection Act, 2019.

Tanu Banerjee, a partner at Khaitan & Co, advises that endorsements must reflect a genuine opinion based on adequate information. If influencers fail to show this diligence, they can also be held accountable for misleading statements.

Get Help from Talent Agencies

Many influencers work with talent management agencies to find deals and manage legal details. Priyanka Padode Sheth, head of business at IPLIX Media, stresses that influencers must verify brands and review scripts before creating content. If you’re working with an agency, ensure they are thorough in checking brands and contracts.

Be Transparent with Your Audience

ASCI requires influencers to clearly label paid promotions and sponsored content. Using tags like #ad, #sponsored, and #paidpromotion isn’t just polite; it helps maintain trust with your followers. More influencers are recognizing that honesty pays off.

Shudeep Majumdar, co-founder of Zefmo, reports that nearly 30% more influencers are choosing to disclose brand collaborations openly. Your followers appreciate transparency, and being upfront about sponsorships can enhance their trust in you.

Don’t Skip the Paperwork

Quick brand deals through direct messages can be enticing, but without contracts, you risk facing payment delays, disputes, or legal issues. One influencer, who wished to remain anonymous, noted that brands often bypass paperwork, leaving influencers vulnerable if things go wrong. Always get contracts, invoices, and deliverables in writing to protect yourself.

Manage Your Finances Wisely

If you earn over ₹20 lakh a year, you must register for GST and file taxes. Don’t wait until tax season to understand your tax obligations. Seek help from a professional if you’re unsure about your finances. Suraj Pal Singh, an influencer with over a million Instagram followers, emphasizes the importance of financial literacy.

Be Cautious with Brand Partnerships

Choose your brand collaborations wisely. While companies in restricted sectors like betting and tobacco may offer high payments, the risk to your credibility isn’t worth it. Singh warns that promoting such brands could harm your followers, and ASCI chief Manisha Kapoor reminds influencers to be cautious about advertising in sectors with legal restrictions.

The Bottom Line: Protect Your Brand and Yourself

Being an influencer involves more than just sharing pretty pictures and securing brand deals. By following ASCI guidelines, conducting due diligence, being transparent, and managing finances responsibly, you can avoid legal issues and build a lasting reputation in the influencer space.