India's ad body changes influencer rules for health and finance sectors

The Advertising Standards Council of India (ASCI) has introduced an important update to its Influencer Advertising Guidelines, marked by the release of Addendum 2 specifically targeting health and finance influencers. This development is more than just regulatory housekeeping; it acknowledges a new reality where millions of Indians today place significant trust in influencers for information that can impact their fiscal, physical, and emotional wellbeing.

Influencers operating in the BFSI (Banking, Financial Services, and Insurance) and health and nutrition sectors are now mandated to hold and disclose the necessary qualifications and certifications whenever they provide technical advice. The distinction is crucial: casual promotions and broad-based messaging can continue without formal qualifications, but anything veering into expert territory must meet higher standards of disclosure and expertise.

Manisha Kapoor, CEO and secretary general of ASCI, said, “Influencer marketing has matured beyond simple endorsements and now often involves strategic partnerships for various aspects of brand communication. The updated guidelines bring in the required nuance for influencers operating in the BFSI and health and nutrition space.”

Why this update matters now

The timing of ASCI’s move is no coincidence. The explosion of digital content consumption has blurred the lines between advertisements and organic content.

Consumers often engage with influencer messaging without recognising its commercial intent. When it comes to finance or health, such misinterpretation can have serious consequences—ranging from monetary losses to adverse health outcomes.

In a world increasingly dominated by user-generated content, the credibility gap between traditional advertising and influencer marketing is narrowing. The persuasive charm of a relatable Instagram Reel or a heartfelt YouTube video often outweighs the dry caution of fine print legal disclaimers.

Healthcare and pharmaceutical companies, traditionally reliant on physician outreach, print ads, and television, have adapted quickly. Influencer marketing is no longer a novelty; it is a critical tool to humanise complex, highly regulated sectors.

However, this proximity to the consumer also raises the stakes. As ASCI’s guidance highlights, improperly conveyed health or financial advice could lead to “substantial and serious” losses for consumers.

The Core Changes Explained

Previously, ASCI required all influencers commenting on BFSI and health and nutrition to have the necessary qualifications. The updated guidelines now introduce nuance by distinguishing between generic promotions and technical advice.

For example, generic promotions, such as an insurance company collaborating with an influencer to discuss the general need for health check-ups, do not require specific qualifications. However, technical promotions, such as influencers offering investment advice or promoting claims about medical treatments, must now be backed by appropriate certifications.

Influencers who delve into technical aspects are now required to disclose their qualifications prominently—superimposed on videos, included at the start of audio content, or clearly visible at the beginning of a blog post. This ensures that the average consumer understands the source’s credibility before engaging with the content.

In addition, influencers must be ready to provide proof of their qualifications upon ASCI’s request, closing any potential loophole of unverifiable claims.

Disclosure requirements: A non-negotiable

Another pillar of ASCI’s updated guidelines revolves around disclosures, which aim to ensure transparency in influencer-advertiser relationships. All influencer advertisements must clearly carry a disclosure label that signals to consumers that they are being exposed to an advertisement. The disclosure must be upfront, prominent, and easily understandable. ASCI warns that disclosures buried in hashtags, hidden at the end of posts, or made available only upon clicking 'More' do not meet compliance standards.

The key disclosure mandates include that for videos up to 15 seconds, the label must stay visible for at least 3 seconds. Similarly, for videos longer than 15 seconds but less than 2 minutes, disclosures must appear for one-third of the video, while for those longer than 2 minutes, disclosures must remain visible for the entire duration where the brand or its features are discussed.

In live streams and podcasts, disclosures must be announced at both the beginning and end. In text-based content, the disclosure must appear before the consumer reads the post.

The list of acceptable disclosure terms includes advertisement, ad, sponsored, collaboration, partnership, employee, free gift, affiliate, or the use of platform-specific disclosure tools.

Kapoor emphasised, “With lines between content and advertisements becoming blurry, it is critical that consumers must be able to distinguish when something is being promoted with an intention to influence their opinion or behaviour for an immediate or eventual commercial gain.”

Additionally, in the case of virtual influencers, ASCI mandates a clear disclosure that the consumer is not interacting with a real human being—an important clause as AI-generated personalities gain traction.

The role of advertisers and influencers

ASCI places the onus of responsibility not only on the influencer but also squarely on the advertiser. Brands must ensure that any influencer they engage complies with ASCI’s guidelines, including disclosure norms and adherence to the ASCI Code.

If a discrepancy is found, advertisers are expected to instruct influencers to edit or delete non-compliant content immediately. Both parties are held liable, marking a significant shift from earlier frameworks where influencers bore the brunt of accountability.

Further, influencers are expected to conduct due diligence by satisfying themselves that advertisers can substantiate any claims made in promotional content.

If an influencer or advertiser contests that a post isn’t an advertisement due to a lack of material connection, ASCI demands evidence. This could include a signed declaration from a senior marketing, compliance, or legal executive attesting no material connection. If the advertiser cannot be traced or multiple brands are featured, proof of purchase by the influencer may be deemed sufficient.

In high-stakes sectors like finance and health, ASCI’s updated guidelines enforce strict credentialing. Finance influencers offering investment advice must be SEBI-registered and disclose their registration number, while broader financial advice demands qualifications like a CA, CS, or an IRDAI insurance license.

Health influencers are required to hold relevant degrees—such as a medical, nursing, dietetics, physiotherapy, psychology, or nutritionist certification—based on the advice given. Only qualified individuals may offer technical advice; others must limit themselves to generic information.

For instance, an influencer promoting a health food brand can talk about general healthy eating without medical claims. Similarly, a fitness coach can discuss the importance of annual health check-ups but cannot advise on treatment plans.

Influencers failing to comply risk being pulled up by ASCI and being asked to submit qualifications or retract non-compliant content.

The larger impact on the industry

By enforcing stricter qualification and disclosure standards, ASCI is setting the tone for greater professionalisation of influencer marketing—especially in critical categories like health and finance.

This move also safeguards brand reputation in an era where consumer backlash against misleading promotions can be swift and unforgiving. Brands that work closely with influencers must now consider compliance from the very outset of their campaigns, rather than treating it as an afterthought.

The stakes are high. Influencer marketing in India was estimated to be a INR 1,275 crore industry in 2023 and is projected to grow at a CAGR of 18%. In BFSI and health and nutrition, where misinformation can cause irreplaceable damage, such self-regulatory frameworks are not just best practices—they are existential necessities.

As Kapoor succinctly pointed out, "Consumers may view such messages without realising the commercial intent of these, and that becomes inherently misleading."

ASCI’s updated guidelines for influencer advertising in health and finance are a strong, timely response to a rapidly evolving digital landscape. By introducing nuance between generic and technical promotions, setting explicit disclosure rules, and insisting on verifiable qualifications, ASCI strengthens the trust between brands, influencers, and the public.

The move also signals that while creativity and relatability are important in digital marketing, accountability and transparency are non-negotiable—especially when it comes to matters that touch people’s wallets and health.

In an age where misinformation spreads at the speed of a click, this regulatory tightening is not just welcome—it is vital for the sustainable growth of India’s digital economy.