Influencer Marketing in 2024: ASCI’s Action Against Misleading Ads and the Case of Sugar Cosmetics

In recent years, influencer marketing has skyrocketed in India, with brands investing heavily in digital creators to promote products and reach targeted audiences. As this trend grows, so does the need for transparency, authenticity, and ethical marketing practices. The Advertising Standards Council of India (ASCI) has taken an active role in regulating the space, ensuring consumers are protected from misleading promotions. A recent case involving Sugar Cosmetics provides a snapshot of the evolving regulatory landscape and highlights the importance of compliance for brands and influencers alike.

The Rise of Influencer Marketing and Regulatory Concerns

With the growth of digital platforms like Instagram, YouTube, and TikTok, influencer marketing has become a key component of modern brand strategy. For consumers, influencers offer a seemingly more genuine and relatable perspective on products. However, this trust-based marketing format has raised concerns about the transparency of promotional content and the potential for misinformation, especially when ads aren’t clearly disclosed or when product claims lack substantiation.

To address these issues, ASCI has laid down strict guidelines for influencer advertising. Among the key requirements are clear disclosure of paid partnerships (e.g., using labels like #Ad or #Sponsored) and ensuring that any claims made about products are factual and verifiable.

The ASCI and Sugar Cosmetics: A Case Study

In early 2024, Sugar Cosmetics, a popular beauty and skincare brand in India, found itself under ASCI’s scrutiny. The brand, known for its innovative digital campaigns, had collaborated with several influencers to promote a new line of skincare products. However, the promotions came under ASCI’s lens when consumers raised concerns about misleading claims and inadequate disclosure of paid partnerships.

After investigating, ASCI found that some of the claims made by influencers on behalf of Sugar Cosmetics lacked the necessary scientific backing, and many posts did not include appropriate ad disclaimers. ASCI issued corrective instructions to Sugar Cosmetics, mandating changes in content to align with transparency standards. In response, the brand acted quickly, collaborating with its influencer partners to revise their posts, ensuring each one followed ASCI’s guidelines.

The Evolving Regulatory Landscape

This case underscores the challenges and opportunities that influencer marketing brings to India’s regulatory framework. With ASCI’s increasingly vigilant stance, brands and influencers alike must stay up-to-date with best practices. The council’s intervention with Sugar Cosmetics also highlights the importance of credibility and transparency, signaling a new phase in influencer marketing.

As brands and creators adjust to these guidelines, ASCI’s actions are shaping a more ethical, consumer-centric landscape in Indian advertising. Influencers are now more cautious about making unverified claims, and brands are emphasizing compliance in their campaigns, ensuring the interests of consumers are prioritized.

Lessons for Brands and Influencers

For brands looking to succeed in the age of regulated influencer marketing, the key takeaways from the Sugar Cosmetics case are:

1. Clear Disclosure: Ensure all influencer posts are properly labeled to disclose paid promotions. This not only builds trust with audiences but also aligns with ASCI’s requirements.
2. Data-Backed Claims: Avoid making unsubstantiated claims, especially for products related to health, beauty, and wellness. Claims should be backed by credible research to maintain credibility and avoid regulatory action.
3. Ongoing Compliance: As guidelines evolve, brands and influencers need to continuously educate themselves on ASCI standards and adapt their strategies accordingly.

The Future of Influencer Marketing in India

As ASCI strengthens its role, brands and influencers are realizing the importance of compliance. The Sugar Cosmetics case serves as a valuable reminder that credibility is essential in maintaining consumer trust. With the right approach to transparency, influencer marketing in India is set to continue thriving—responsibly and ethically.

In 2024 and beyond, influencer marketing will likely witness a balance of creativity and compliance, with ASCI’s guidelines helping brands reach consumers in ways that are both effective and trustworthy.