Influencer Marketing and Legal Liability: Who Is Responsible for a Misleading Claim?
Written by Zahid Sanwarwala
Influencer Marketing and Legal Liability: Who Is Responsible for a Misleading Claim?
Written by Zahid Sanwarwala
Influencer marketing has changed how brands communicate with consumers. But when an influencer makes a misleading or unsubstantiated claim, the question of legal responsibility becomes important: does the liability lie with the brand, the influencer, or both?
Under India's consumer protection framework, misleading advertisements can attract regulatory action. The Central Consumer Protection Authority (CCPA) can direct advertisers to discontinue or modify misleading advertisements and impose penalties in appropriate cases.
The brand, therefore, cannot automatically avoid responsibility simply because the claim was communicated through an influencer.
At the same time, influencers are not merely passive participants. The CCPA's 2022 Guidelines on misleading advertisements and endorsements recognise responsibilities for endorsers, including exercising due diligence before making representations about products or services.
The influencer's role becomes particularly significant where they make personal claims, present specific results as fact, or endorse a product without having a reasonable basis for the representation.
An influencer must clearly disclose a material connection with the brand. The ASCI Guidelines for Influencer Advertising in Digital Media require appropriate disclosure of paid or other material commercial relationships.
However, disclosure does not cure a misleading claim. A post labelled “#Ad” can still be problematic if the underlying representation is false, exaggerated or unsupported.
A compliant campaign should establish clear responsibility before publication:
Verify and substantiate factual claims.
Clearly define what the influencer can and cannot say.
Ensure the commercial relationship is properly disclosed.
Review content before publication.
Use written agreements covering approvals, compliance and liability.
This becomes even more important for regulated sectors such as healthcare, finance and food, where additional legal requirements may apply.
Influencer marketing may change who delivers an advertisement, but it does not remove the legal responsibility attached to the advertisement itself.
Brands, agencies and influencers should therefore treat promotional content as advertising that requires accuracy, substantiation and transparency. Clear contracts and proper content review can help determine responsibility before a misleading claim becomes a legal dispute.