The short answer: If a creator has received anything of value from your brand, the post is an advertisement and must say so, upfront, where an ordinary viewer cannot miss it. That covers money, free product, a discount, a trip and a family or job connection. The Advertising Standards Council of India (ASCI) sets the guidelines, and it places responsibility on the advertiser as well as the influencer. A label hidden after "more" or buried in hashtags does not count.
This is a practical summary, not legal advice. Check ASCI's current guidelines, and take legal advice for your category, before a campaign goes live.
When a label is needed
ASCI's test is a material connection: any link between brand and creator that could affect how much weight a viewer gives the recommendation.
| Situation | Label needed? |
|---|---|
| You paid the creator a fee | Yes |
| You sent free product, with or without conditions, even unsolicited, and they posted about it | Yes |
| Barter, a discount, a trip, a hotel stay, an event invite | Yes |
| An affiliate link or commission code | Yes |
| The creator is your employee, founder or a family member | Yes |
| The creator says the review is their honest opinion | Still yes. A connection needs a label even when the opinion is unbiased |
| The creator bought the product and simply likes it | No. ASCI does not treat this as an advertisement |
The second row surprises most brands. Under ASCI's wording, if you send a gift and the creator mentions the product, a disclosure is needed even if you never asked for a post.
Which labels are allowed
ASCI lists the labels it accepts. Any one is enough:
- Advertisement
- Ad
- Sponsored
- Collaboration
- Partnership
- Employee
- Free gift
- Affiliate
- The "Paid Partnership" tag on Instagram
- The "Includes Paid Promotion" tag on YouTube
The label must be in English or in the language of the post itself. ASCI also says a platform's disclosure tool should be considered in addition to the influencer's own disclosure. Our standing brief is therefore both: the platform tag and a written label.
Where the label goes
ASCI's rules are that the disclosure must be upfront and prominent, must not sit only in a bio or at the end of a post, must not need a tap on "more", and must not be buried in a group of hashtags. The right-hand column is how we apply that to each format.
| Format | What ASCI says | What we brief |
|---|---|---|
| Reel or short video | Upfront and prominent. Where there is no accompanying text, the label is superimposed on the video for a minimum time (see below) | Paid Partnership tag, "Ad" as the first word of the caption, and an on-screen label from the first second |
| Story | Label superimposed on the picture or video so the viewer can see it clearly | A label on every frame, in a readable size, away from the edges where the app's own buttons cover it |
| Static post | Not at the end of the caption, not after "more", not among hashtags | "Ad" or "Sponsored" as the first word of the caption, plus the platform tag |
| YouTube video | For videos of two minutes or longer, the label stays for the whole section in which the brand is mentioned | "Includes Paid Promotion" tag, a spoken line when the segment starts, an on-screen label through the segment and a line at the top of the description |
| Live stream | Announced at the beginning and at the end. If the video stays up afterwards, add the disclosure to the caption | Say it at the start, at the end and each time the product comes up. Pin a comment. Fix the caption when the live is saved |
| Podcast or audio | Announced at the beginning and the end, and before and after every break | The host reads the line. Do not leave it to the show notes |
How long must an on-screen label stay? ASCI gives three bands:
- Video of 15 seconds or less: at least 3 seconds.
- Longer than 15 seconds but under 2 minutes: one third of the video. A 45-second Reel needs the label for 15 seconds.
- 2 minutes or longer: the entire section in which the brand, its features or benefits are mentioned.
Our advice is simpler than the arithmetic. Keep the label on for the whole video. Over-disclosing costs you nothing.
The Department of Consumer Affairs published its own guide, "Endorsement Know-hows", in January 2023. Legal summaries of it report that it expects disclosure inside the video and not only in the description, and continuous display during a live stream. The two documents overlap but are not identical, which is one more reason to label generously.
Good and bad disclosure
| Bad | Why it fails | Good |
|---|---|---|
| "Loving my new serum! ... #skincare #glow #collab #sp" | Abbreviated, and buried in hashtags after "more" | "Ad. I have used this serum for three weeks. Here is what changed." |
| "Thanks to the team at [brand] for sending this" | Vague. Does not say it is an advertisement | "Free gift from [brand]." |
| "Paid partnerships" written in the creator's bio | ASCI says a bio or profile disclosure is likely to be missed | A label on each post |
| "Sponsored" in English under a Reel spoken entirely in Marathi, in tiny grey text | Allowed on language, fails on prominence | A clear on-screen label, plus a spoken line in Marathi |
| The label appears on the last frame of a Story set | Disclosure at the end is likely to be missed | The label on the first frame and every frame after |
A contract clause
Put disclosure in the agreement, not only in the brief. A plain-English clause you can adapt with your lawyer:
Disclosure. The Creator will clearly label all content made under this agreement as advertising, as required by the ASCI Guidelines for Influencer Advertising in Digital Media. The Creator will (a) switch on the platform's paid partnership tool, (b) place the word "Ad" at the start of the caption, and (c) show an on-screen label for the full length of any video or Story. The Creator will send the content and caption to the Brand for approval before posting, will correct any missing or unclear label within 24 hours of being asked, and will not remove the label for as long as the content stays live. The Brand will give the Creator evidence for any product claim it asks the Creator to make.
The last sentence matters. ASCI advises influencers to satisfy themselves that the advertiser can substantiate its claims. A good creator will ask. Have the answer ready.
Pre-publish checklist
Run this on the final file and caption, not on the script.
- Is the platform's paid partnership tag switched on?
- Is an ASCI-approved label the first thing in the caption, before any "more" cut-off?
- On video and Stories, is the label on screen, readable on a phone, and there for long enough?
- Is the label in English or in the language of the content?
- Can every product claim in the script be backed with evidence you hold?
- For health, nutrition or finance: does the creator hold the qualification ASCI asks for, and is it shown upfront? (See below.)
- For a virtual or AI-generated influencer: does it also say clearly that this is not a real person?
- Have you saved the approved file, the caption and a screenshot of the live post?
Three special cases
Health and finance. ASCI's addendum says influencers giving advice on banking, financial services and insurance, or on health and nutrition, must hold relevant qualifications and state them upfront. For stocks and investments that means a SEBI registration number shown with their name. For health it means a medical degree or a certification such as nutritionist or dietician, depending on the advice. If you sell supplements or a fintech product, check this before you shortlist anyone.
Virtual influencers. A computer-generated influencer must disclose, upfront and prominently, that viewers are not interacting with a real human being. That is on top of the advertising label.
"There was no deal." If ASCI raises a post and you say there was no material connection, it asks for a declaration signed by a senior person at the brand, such as the marketing or legal head. So keep a record of who was sent what.
If something slips
ASCI's guideline says the advertiser shall, where needed, call upon the influencer to delete or edit the post or its label. In practice: message the creator the same day, get the caption edited, and screenshot the corrected version.
The consequences go beyond an ASCI complaint. Legal summaries of the government guide note that non-disclosure can be treated as an unfair trade practice under the Consumer Protection Act, 2019, with penalties reported at up to ₹10 lakh, and up to ₹50 lakh for repeat offences. Confirm the current position with your lawyer.
It is also plain good marketing. Viewers spot an unlabelled deal quickly, and the comments say so. A clearly labelled recommendation from a creator who fits the brand loses nothing.
Where this fits
Disclosure is written into every brief and contract in our influencer marketing work, and checked again before a post is approved. The same labels apply when creator videos are reposted on your own pages through social media marketing or cut into Reels by our content creation team.
