Law4u - Made in India

Are Influencer Discount Codes Regulated?

Answer By law4u team

Influencer marketing has become a popular strategy for brands to reach consumers, often using discount codes to drive sales. However, the use of such codes must comply with advertising and consumer protection regulations to prevent misleading practices. In India, specific guidelines from the Advertising Standards Council of India (ASCI) and the Consumer Protection Act ensure that influencers disclose paid partnerships or sponsored content, maintaining transparency and trust with their audience.

Regulations Governing Influencer Discount Codes

ASCI Guidelines for Influencer Advertising in Digital Media (2021)

  • Influencers must clearly disclose paid partnerships or affiliate links.
  • Hashtags like #Ad, #Sponsored, #PaidPromotion, or #Collaboration must be visible.
  • Discount codes offered as part of a paid promotion must be disclosed.

Consumer Protection Act, 2019 – Central Consumer Protection Authority (CCPA) Guidelines (2022)

  • Misleading ads, including undisclosed paid endorsements, are punishable.
  • Influencers can be fined up to ₹10 lakh for non-disclosure on first offence, and ₹50 lakh for repeated violations.
  • Disclosures should be prominent, clear, and in the language of the endorsement content.

Disclosure Requirements on Social Media

  • Disclosures must not be buried in the middle of a post or hidden in hashtags.
  • In video content, disclosure should be made at the beginning and during the promotion.
  • In live streams, repeated disclosures are encouraged.

Affiliate Marketing and Discount Codes

  • Influencers using codes that earn them commissions must state it’s a paid relationship.
  • Words like Use my code and get 20% off should be followed by a clear disclaimer such as I earn a commission when you use this code.

Platform-Level Enforcement

Platforms like Instagram and YouTube encourage tagging paid promotions, and repeated violations may lead to content removal.

Legal Protections and Consumer Rights

  • Consumers can file complaints against misleading promotions or undisclosed sponsorships.
  • The CCPA has the authority to investigate and penalize both influencers and brands.
  • ASCI also allows consumers to report non-compliant posts through its online complaint portal.
  • Courts may direct refunds or compensation for deceptive practices causing financial loss.

Example:

An influencer posts a skincare product with a discount code like GLOW20 but doesn’t mention that it’s a paid promotion. A follower buys the product but develops a severe skin allergy and learns later that the influencer was paid by the brand.

Steps the consumer can take:

  • Save the post and payment proof as evidence.
  • File a complaint with ASCI for non-disclosure of paid promotion.
  • Submit a grievance to the Central Consumer Protection Authority via consumerhelpline.gov.in.
  • Seek medical compensation under the Consumer Protection Act for product damage.
  • Request a product return or refund from the seller due to misleading endorsement.

Our Verified Advocates

Get expert legal advice instantly.

Advocate A G Deshpande

Advocate A G Deshpande

Divorce, Family, Domestic Violence, Insurance, Motor Accident, Property, Succession Certificate, Revenue, Cheque Bounce, Breach of Contract, Child Custody, Civil

Get Advice
Advocate Abdul Shahid Khan

Advocate Abdul Shahid Khan

Civil,Cheque Bounce,Criminal,Property,Insurance,

Get Advice
Advocate Choudhary Vijay Singh Deswal

Advocate Choudhary Vijay Singh Deswal

Criminal, Cheque Bounce, Civil, Consumer Court, Anticipatory Bail, Domestic Violence, Motor Accident, Revenue, Wills Trusts, Child Custody, Banking & Finance, Divorce, Court Marriage, High Court, Medical Negligence, R.T.I, Property, Succession Certificate

Get Advice
Advocate Anil Kumar

Advocate Anil Kumar

Anticipatory Bail, Breach of Contract, Cheque Bounce, Child Custody, Consumer Court, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Insurance, Landlord & Tenant, Motor Accident, Muslim Law, R.T.I, Recovery, Succession Certificate, Supreme Court, Wills Trusts, Revenue, Property, Civil

Get Advice
Advocate Kailas Balasaheb Jadhav

Advocate Kailas Balasaheb Jadhav

High Court, Motor Accident, Anticipatory Bail, Civil, Property

Get Advice
Advocate Pawan Gahlyan

Advocate Pawan Gahlyan

Anticipatory Bail, Bankruptcy & Insolvency, Cheque Bounce, Child Custody, Civil, Consumer Court, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Immigration, Insurance, Landlord & Tenant, Medical Negligence, Motor Accident, Property, Recovery, RERA, Armed Forces Tribunal

Get Advice
Advocate Sikandar Ansari

Advocate Sikandar Ansari

Cheque Bounce,Cyber Crime,Criminal,Landlord & Tenant,Motor Accident,Succession Certificate,Anticipatory Bail,

Get Advice
Advocate Marshal Ramkrishnan Nadar

Advocate Marshal Ramkrishnan Nadar

Anticipatory Bail, Bankruptcy & Insolvency, Breach of Contract, Cheque Bounce, Civil, Consumer Court, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, Insurance, Labour & Service, Landlord & Tenant, Recovery, Succession Certificate

Get Advice

Cyber and Technology Law Related Questions

Discover clear and detailed answers to common questions about Cyber and Technology Law. Learn about procedures and more in straightforward language.