Every paid post a creator makes in India is an advertisement, and Indian rules say it has to look like one. The rules are not complicated, but they are often misunderstood — by brands who think a disclosure will hurt performance, and by creators who think a hashtag buried at the end is enough.
This guide explains the rules in plain language. It is written from our experience running campaigns, not as legal advice; for anything unusual, read the current guidelines on the ASCI website or ask a lawyer.
Who sets the rules
Two sets of rules apply.
- The Advertising Standards Council of India (ASCI) publishes guidelines for influencer advertising in digital media. ASCI is the advertising industry's self-regulatory body, and its guidelines are widely followed by brands, agencies and platforms.
- The Department of Consumer Affairs has issued its own guidelines for celebrities and influencers on social media, under the Consumer Protection Act. These cover the same ground — clear disclosure of material connections — and carry legal weight.
In practice, following ASCI's guidelines carefully keeps you on the right side of both.
When a post counts as an ad
The key idea is a "material connection" between the creator and the brand. If there is one, the post needs a disclosure. A material connection includes:
- Being paid for the post.
- Receiving free products or services, including gifted items the creator was not obliged to post about.
- Discounts, trips, hospitality or other benefits.
- A family, employment or business relationship with the brand.
It does not matter whether the brand approved the content, or whether the creator genuinely likes the product. If there is a connection and the post is about the brand, it needs a label.
How it must be labelled
ASCI's guidelines list specific labels a creator can use, including:
- #ad or #advertisement
- #sponsored
- #collab or #collaboration
- #partner or #partnership
- #employee
- #freegift
The platform's own tool — such as Instagram's "Paid partnership" label — is encouraged, but it should be used alongside a clear label rather than as a substitute where the tool is easy to miss.
Where the label must go
This is where most mistakes happen. The disclosure has to be upfront and prominent — where a normal viewer will actually see it.
- In a caption, it should be in the first lines, visible without tapping "more", and not hidden in a block of hashtags at the end.
- On an image-only post, the label should be on the image itself.
- In a video, it should be on screen, and for long enough to be read. For longer videos, it should be visible while the brand is being talked about, not just flashed at the start.
- In a live stream, it should be announced — at the start and again during or at the end.
- In stories, it should be on each story in the sequence that features the brand.
A good test: would a viewer who saw only what is on their screen understand that this is a paid post? If not, the label is in the wrong place.
Beyond the label: what else the rules expect
- Honest claims. Creators are expected to check that what they say about a product is true, especially technical or performance claims. "I've been using it for a month" should be true.
- Genuine use. A review should reflect the creator's actual experience of the product.
- Special care in health and finance. ASCI has added requirements for health, wellness and financial content — for example, expecting creators giving health advice to be suitably qualified, and investment advice to come only from people registered to give it. If your product is in these categories, check the current rules before briefing.
- Virtual influencers. Computer-generated creators must make clear to their audience that they are not real people.
What happens if the rules are broken
ASCI can ask for posts to be edited or taken down, and publishes the names of advertisers and influencers found in breach. Under the Consumer Protection Act, the Central Consumer Protection Authority can impose penalties for misleading advertisements, which can include fines and, for endorsers, a bar from endorsing for a period.
For most brands, the bigger cost is reputational: being named in a public list of non-compliant advertisers is not a good look, and neither is a creator deleting a post mid-campaign.
Does disclosure hurt performance?
This is the fear behind most missing labels, and in our experience it is mostly unfounded. Audiences already know creators do paid work. What they dislike is being misled. A reel that is good to watch performs with "#ad" on it; a reel that is not good to watch was never going to perform anyway.
Creators with the most loyal audiences are often the most careful about disclosure, precisely because they protect that trust.
What brands should do
- Put the disclosure requirement in the brief and the agreement, in writing.
- Check every post before and after it goes live.
- Don't ask creators to hide or soften the label. It puts both of you at risk.
- Keep claims in the brief accurate, and don't ask a creator to say something they cannot stand behind.
- For health, wellness or finance products, check the category-specific rules first.
What creators should do
- Label every post where there is a material connection, including gifted products.
- Put the label where it is seen first, not last.
- Only say what is true, and only about products you have actually used.
- Keep a record of what you were paid or given, and by whom.
Right and wrong, with examples
- Wrong: a caption that starts "Obsessed with my new earbuds!" and ends, after twenty hashtags, with #ad. The label is there, but nobody sees it.
- Right: "#ad Tried these earbuds for two weeks — here is what I actually think." The label is the first thing read.
- Wrong: a reel with a platform "Paid partnership" tag that is easy to miss, and nothing in the video itself.
- Right: the platform tag plus a clear on-screen label while the product is being talked about.
- Wrong: a creator posting about a hotel stay they were given free, with no mention of it.
- Right: "#freegift — the hotel hosted me for two nights" near the top of the caption.
- Wrong: a story sequence where only the first frame is labelled and the product appears in the fifth.
- Right: a label on every frame that features the brand.
Frequently asked questions
Does a gifted product need a disclosure even if I was not paid? Yes. A free product or service is a material connection, and the post needs a label such as #freegift or #ad.
What about affiliate links and discount codes? If the creator earns from sales through a link or code, that is a material connection, and the post should be labelled.
If I repost a brand's content on my account, is that an ad? If there is a material connection — you were paid, gifted or asked to repost — yes, and it should be labelled.
Does this apply to YouTube and other platforms, or only Instagram? The guidelines cover digital media generally, not one platform. The same principles apply wherever the content is posted.
Is the brand responsible, or the creator? Both. The creator must label the post; the brand must not ask them to hide it, and should check that it has been done.
Can a brand approve a post before it goes live? Yes, and it is good practice — as long as approval is not used to remove or bury the disclosure.
How we handle it
Every paid post we run carries a clear disclosure. It is not negotiable, whatever a brief asks for. We check posts before they go live, and we decline campaigns in categories where the claims cannot be made honestly.
If you are planning a campaign and are unsure how the rules apply, ask us. We would rather spend ten minutes getting it right than have a creator take down a post halfway through your launch.
For the practical side of running a campaign, see our guide to influencer marketing in Nagpur.