If you post content in India because a brand paid you, gave you something free, or has any other connection with you, the post has to say so clearly. That rule comes from the Advertising Standards Council of India (ASCI), whose Guidelines for Influencer Advertising in Digital Media have applied since 2021. It is backed by the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act, 2019.
This explainer covers the rules in plain English for creators and for the brands that hire them. It is a summary, not legal advice. For the full text, see ascionline.in.
The rule in one line: if there is a material connection between you and the brand, add a clear label such as #Ad at the start of the post, where no one can miss it.
Who the guidelines apply to
ASCI treats as an influencer anyone with access to an audience who can affect their followers' purchasing decisions or opinions. There is no minimum follower count. A creator with 800 followers who posts a paid promotion is covered exactly like a celebrity.
Brands and advertisers are responsible too. The brand and the creator are both expected to make sure a paid post is disclosed.
What counts as a "material connection"
A material connection is any link between the creator and the brand that might affect how the audience weighs the post. It includes:
- Payment of any kind, including per-post fees and commissions.
- Free products or services, even if you did not ask for them.
- Discounts, trips, hotel stays, event invitations or other perks.
- Employment by the brand, or a family or personal relationship with it.
- Being a brand ambassador, investor or partner.
If any of these apply, the post needs a disclosure label, even if your opinion is completely honest.
Which disclosure labels are allowed
ASCI lists labels that are acceptable on their own:
- #Advertisement or #Ad
- #Sponsored
- #Collaboration or #Collab
- #Partnership
- #Employee
- #FreeGift
Platform tools such as Instagram's "Paid partnership" tag help, but you should still add a clear label yourself. Vague tags such as #sp, #thanks or #brandname alone are not enough.
Where the label must go
The label has to be upfront and prominent. A typical viewer should see it without clicking "more", opening a link or scrolling through a block of hashtags.
- Captions: put the label at the start or within the first lines, not at the end among other hashtags.
- Image-only posts, such as Stories: put the label on the image itself, large enough to read.
- Audio content: say it out loud at the beginning and at the end.
- Live streams: disclose at the start and at the end of the stream, and keep it visible where the format allows.
How long the label must stay on screen in videos
| Video length | How long the label must be visible |
|---|---|
| Up to 15 seconds | At least 2 seconds |
| 15 seconds to 2 minutes | At least one-third of the video |
| Longer than 2 minutes | The whole section where the brand is mentioned |
Creators must check the claims they make
A label does not make a false claim acceptable. ASCI expects creators to review what they are asked to say and to satisfy themselves that the brand can back it up. If a product claims to "cure hair fall in 7 days", ask the brand for proof before you repeat it. Say only what you have genuinely experienced, and do not fake before-and-after results.
Stricter rules for health and finance
- Health and wellness: anyone giving health or nutrition advice in a promotion is expected to hold relevant qualifications, such as a doctor or dietitian, and disclose them.
- Banking, financial services and investments: creators giving investment advice must be registered with SEBI and show their registration details.
- Virtual influencers: computer-generated characters must tell the audience they are not real people.
What happens if you do not disclose
ASCI can ask for a non-compliant post to be changed or removed, and publishes the names of those who break the code. The CCPA, a statutory authority, can go further. Under the Consumer Protection Act, 2019, it can impose penalties for misleading endorsements, up to ₹10 lakh for a first offence and up to ₹50 lakh for repeat offences. It can also bar an endorser from endorsing for up to one year, or up to three years for repeat offences. In January 2023 the government also issued "Endorsement Know-hows!", a guide for celebrities and influencers that repeats the same disclosure principles.
Quick checklist before you post
- Is there any payment, free product, discount or relationship with the brand? If yes, it needs a label.
- Is the label one of the clear ones, such as #Ad, #Sponsored or #Collab?
- Can people see it without tapping "more"?
- For a video or Story, is the label on screen for long enough?
- Have you checked that the claims in the post are true and that you can stand behind them?
- If it is health or finance content, do you have the required qualification or registration?
How Adlly handles disclosure
On Adlly, disclosure is not optional. Every campaign caption carries #Ad or #Sponsored when it reaches the creator. Adlly reviews each campaign before creators see it. A post that removes the label fails verification and is not paid. Adlly also refuses whole categories it will not carry, including alcohol, tobacco and political advertising. See disclosure and brand safety for brands, or how it works for creators.
Frequently asked questions
Do I need #Ad if the brand only sent me a free product?
Yes. A free product is a material connection. Use #Ad or #FreeGift.
Is Instagram's "Paid partnership" tag enough?
Use it, but add a clear label in the caption or on the image too, so the disclosure is obvious wherever the post is seen.
Do the guidelines apply to small creators?
Yes. There is no follower threshold. Anyone promoting a brand they have a material connection with must disclose it.
Who is responsible, the brand or the creator?
Both. Brands should include the label in their brief and caption, and creators must keep it in the published post.
Want to learn more about the market these rules sit in? Read Influencer marketing in India: a practical 2026 guide.