Inside India’s legal playbook for influencers

Influencer marketing is one of the fastest-growing industries across the world, with an estimated global value of $16.4 billion. The trend is gaining traction in India, where the market is forecast to expand at a compound annual growth rate of 25% to reach INR 107 billion by 2027, according to Statista.

Social media has revolutionised how businesses connect with consumers, making influencer marketing a powerful tool for brands in India. Today, influencers are valued for their authenticity, reach, and expertise, often shaping consumer preferences and driving brand engagement. However, in the quest to grow their audience, some influencers may unconsciously make exaggerated claims or unfair comparisons, risking legal trouble. Many remain unaware of the laws governing their work – especially around intellectual property (IP) and advertising standards.

This article explains the IP legal framework and rules framed by the Advertising Standards Council of India (ASCI) that the influencer and agencies managing their engagements must know to build a sustainable, authentic brand and avoid costly disputes.

At the heart of an influencer’s work lies creative content such as videos, photographs, blogs, music, and reels, all of which are protected under the Copyright Act, 1957. Copyright law grants creators the exclusive right to reproduce, distribute, and license their works, thereby safeguarding them against unauthorised use.

Influencers must therefore:

• Review the content of contracts that they sign with businesses or agencies that hire them in terms of ownership of the rights over content produced; and

• Clearly understand the deliverables, timelines, and payment terms.

• Usage rights are particularly significant. Brands often seek the right to reuse influencer-created content in wider campaigns, and influencers should be mindful of such terms and factor it into their engagement. Last but not least, the obligation on influencers not to sign with competing brands (maintaining exclusivity) and termination provisions should also be addressed to avoid conflicts.

When creating content, influencers must consider that the use of third-party music, images, or videos without permission can invite copyright infringement claims, takedowns, and even suspension of an entire channel or account by social media platforms if an objection is raised by the copyright owner. Thus, the influencer should be mindful of IP clearances and evaluate any existing work from the IP rights standpoint before they make use of them.

Another important pillar of protection is trademark law. An influencer’s identity – whether in the form of their stage name, logo, tagline, or even a distinctive hashtag – can be secured as a trademark. Registration not only confers legal exclusivity but also strengthens brand recognition in a crowded digital marketplace.

From a regulatory standpoint, influencers are bound by the ASCI’s Guidelines for Influencer Advertising in Digital Media (2021), which lay down a framework to ensure transparency and consumer trust. These guidelines address the following:

• Mandatory disclosure of paid partnerships – any material connection between a brand and influencer (monetary or otherwise, such as gifts, discounts, trips, barter collaborations, or product seeding) must be disclosed clearly.

• Approved disclosure labels – influencers must only use permitted tags. Creative alternatives or vague terms are not acceptable.

• Prominence and placement – disclosures must be “upfront and prominent”. For videos longer than 15 seconds, the disclosure must stay for at least three seconds; in videos over two minutes, it must appear at the beginning and remain visible throughout. On Instagram stories or reels, the label should be superimposed and easily visible, not hidden in the corner or buried in a description box.

• Language of disclosure – disclosures must be in the same language as the endorsement.

• Responsibility for substantiation – influencers must ensure that claims in their endorsements are truthful and capable of substantiation. They cannot simply rely on the brand’s word. If a product claims “100% sugar-free”, influencers must seek technical reports to verify the claim before endorsing it.

• Special protection for children – content targeted at children carries stricter obligations. Influencers must ensure they do not promote products that are unsafe for children or make exaggerated claims likely to mislead young audiences.

• Liability – influencers are treated on a par with brands with regard to misleading advertisements. Non-compliance with these guidelines may lead to takedown orders, legal notices, and liability under the Consumer Protection Act, 2019.

The Consumer Protection Act, 2019 further imposes liability on endorsers, including influencers, for misleading advertisements. Where an influencer makes claims that are false or unsubstantiated, they may be held accountable alongside the brand. This statutory framework reinforces the necessity for influencers to verify claims before endorsing any product or service.

Complementing this is India’s emerging data protection regime under the Digital Personal Data Protection Act, 2023, which requires responsible handling of personal data. Influencers running contests or campaigns that collect follower information must ensure lawful processing, informed consent, and adequate safeguards.

Influencer Akash Yadav’s complaint against the Whole Truth brand before the Food Safety and Standards Authority of India raised concerns about ‘clean-label’ advertising and whether the company behind the brand was adequately disclosing information while making claims about a product’s efficacy. The news reports suggest that the brand was able to resolve the issue with the authorities.

Overall, companies must be mindful when advertising their products, as in this case, the reel made by the influencer sparked a discussion among followers, many of whom echoed concerns about clean-label marketing and consumer trust in health-focused brands.

A decision by the High Court of Delhi in San Nutrition v Arpit Mangal & Others demonstrates the balance that courts seek to maintain. Influencers who conducted laboratory tests on a nutrition product and shared their findings online were sued for defamation and disparagement, but on April 28 2025, the court held that fact-based critique supported by evidence falls within the ambit of fair comment and freedom of expression.

This decision is closely aligned with the ASCI’s Guidelines for Influencer Advertising in Digital Media, which emphasise that endorsements should be honest, not misleading, and supported by evidence. The court’s observation substantiating the role of influencers is noteworthy: “The impact of social media influencers however extends beyond mere advertising. Apart from being the trendsetters introducing new products and brands to their target audiences, social media influencers have also taken up the role of watchdogs amplifying the concerns raised by the consumers.”

In conclusion, the role of an influencer today extends beyond content creation; it encompasses responsibilities akin to running a business. IP protection, contractual clarity, regulatory compliance, and tax obligations form the backbone of a legally secure influencer career in India.

By taking proactive steps to safeguard their rights and comply with applicable laws, influencers can not only avoid disputes but also build a credible, trustworthy, and enduring digital presence.