Which body notified the Guidelines for Prevention of Misleading Advertisements and Endorsements in June 2022?

Central Consumer Protection Authority (CCPA). The CCPA notified these guidelines on 9 June 2022, under the Consumer Protection Act, 2019. Read more: Polity0089 — Regulation of Social Media Influencers.

What must an influencer disclose under the 2022 CCPA guidelines when promoting a brand they have a paid relationship with?

Any 'material connection' with the advertiser. The guidelines require clear disclosure of any material connection with the advertiser, including payment, free products, family ties, or equity. Read more: Polity0089 — Regulation of Social Media Influencers.

What did a 2024 ASCI study of India's top 100 digital influencers find, and what was the approximate non-compliance rate?

69% failed to disclose brand endorsements properly. The 2024 ASCI study found 69% of India's top 100 influencers failed to properly disclose brand endorsements, despite the CCPA rule being two years old. Read more: Polity0089 — Regulation of Social Media Influencers.

What restriction did SEBI's 29 January 2025 circular place on financial influencers ('finfluencers')?

A ban on real-time stock data use and a mandatory three-month lag before referencing securities. SEBI's January 2025 circular banned finfluencers from using real-time stock data and required a minimum three-month lag before referencing securities in educational content. Read more: Polity0089 — Regulation of Social Media Influencers.

In its December 2025 order against finfluencer Avadhut Sathe, approximately how much did SEBI impound, making it its largest such action to date?

₹546 crore. SEBI's ex-parte interim order against Avadhut Sathe impounded over ₹546 crore, the largest such enforcement action against a finfluencer to date. Read more: Polity0089 — Regulation of Social Media Influencers.

Regulation of Social Media Influencers

A 2024 audit checked India’s top 100 digital influencers for one thing: did they disclose when a post was a paid ad? Two years after the rule requiring exactly that took effect, 69% still failed.

9 Jun 2022 CCPA notifies endorsement guidelines.

26 Aug 2024 SEBI bars regulated entities from finfluencers.

29 Jan 2025 Real-time stock data banned; 3-month lag.

Dec 2025 ₹546 crore impounded from one finfluencer.

Material connection: Money, free products, family ties or equity.

CCPA: Central Consumer Protection Authority.

ASCI: Advertising Standards Council of India.

Finfluencer: A financial-advice social media influencer.

Contents

Chapter 1: The Disclosure Rule
Chapter 2: Audit, SEBI and ASCI
Chapter 3: Rules With Teeth

1Chapter 1: The Disclosure Rule

Must Know

CCPA guidelines, 9 June 2022

On 9 June 2022, the CCPA notified its Guidelines for Prevention of Misleading Advertisements and Endorsements.
They fall under the Consumer Protection Act, 2019.
Influencers must disclose any “material connection” with a brand.
That means money, free products, family ties or an equity stake.
The disclosure must appear clearly and prominently, not buried in a bio or a caption’s last line.

Fines and ASCI

CCPA can fine misleading advertisers and endorsers up to ₹10 lakh for a first violation.
Repeat violations can draw a fine of up to ₹50 lakh.
ASCI separately sets the exact disclosure format.
It specifies where the label must appear and how long it must stay visible on video content.

Remember: Disclose any material connection. ₹10 lakh first time, ₹50 lakh repeat.

True or False: CCPA’s maximum fine for a first violation is ₹50 lakh.

2Chapter 2: Audit, SEBI and ASCI

Good to Know

The 2024 audit

A 2024 ASCI study of the top 100 digital influencers found 69% failed to disclose brand endorsements properly.
That was two years after the CCPA rule requiring exactly that had taken effect.

Why SEBI targeted finfluencers

On 26 August 2024, a SEBI circular barred SEBI-regulated entities from any association with unregistered financial influencers.
On 29 January 2025, a follow-up circular banned finfluencers from using real-time stock data.
It required a minimum three-month lag before referencing securities in educational content.
In April 2025, an ASCI addendum went further.
It requires specific qualifications or certifications before making health, nutrition or finance claims.

3Chapter 3: Rules With Teeth

Great to Know

₹546 crore: December 2025

SEBI’s order against finfluencer Avadhut Sathe impounded over ₹546 crore.
It is the largest such action against a single individual to date.
Sathe’s academy had collected over ₹601 crore from around 3.37 lakh clients, calling it “stock market education.”
SEBI found the programmes actually gave stock-specific buy and sell recommendations.
That crossed from teaching into unregistered investment advice.
Many students who followed the recommendations lost money, while Sathe often did not take the same trades himself.
Searches in August 2025 recovered recordings and messages showing direct inducement to trade.

The order did not stand unchanged

On 22 January 2026, the Securities Appellate Tribunal granted partial relief.
It cut Sathe’s required deposit to ₹100 crore, pending final resolution.
Enforcement escalated, but appeal rights still apply.

Disclosure, not a ban

Every rule here shares one logic: do not ban influencer marketing, force disclosure and accountability instead.
That is a lighter-touch approach, and it keeps the focus on conduct, not speech.
CCPA and ASCI handle disclosure and credentials: is this an ad, and is this person qualified?
SEBI handles unregistered financial advice, since securities sit under its own turf.

Why enforcement escalated

The 2024 finding that 69% still did not comply is the direct reason enforcement escalated through 2025.
Rules without enforcement rarely move behaviour on their own.
That gap led straight into the record December 2025 action.

How big is the industry?

India’s influencer marketing spend was estimated at ₹3,000-3,500 crore in 2025, growing at roughly 22% a year.
The broader creator economy is valued near $15 billion in 2026.
Indian creators are estimated to influence over $350 billion in consumer spending each year.
Some projections expect that to cross $1 trillion by 2030.
That scale is why disclosure and registration rules matter.

Think it through: Why not ban influencer marketing?

A ban would cut legitimate business and speech. Disclosure fixes the real harm, which is hidden ads and unqualified advice. It targets conduct, not the whole industry.

True or False: India’s approach to influencer marketing is disclosure and accountability, not an outright ban.

Quick Q&A

CCPA guidelines date? 9 June 2022.
Audit non-compliance? 69% of top 100 influencers, 2024.
SEBI circular on finfluencers? 26 August 2024.
Largest SEBI action? Over ₹546 crore, December 2025.
SAT relief? Deposit cut to ₹100 crore, 22 January 2026.

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