New #ad Rules for Indian Influencers (2026): What You Must Disclose

If you post sponsored content in India, the rules have teeth. Advertising disclosure for influencers used to be an industry guideline that, at worst, earned you a warning. In 2026 it is backed by consumer protection law, and the penalties run into lakhs of rupees. The advertising self-regulator ASCI recently processed more than 1,600 influencer ads, and 97.3% of them required changes. Here is exactly what you need to know.

First, what even counts as an "ad"?

This is where most creators slip up. A "material connection" to a brand is not just cash. You must disclose if you received any of these in exchange for a post:

• A payment, in money or points.
• A free product or gift, even if you were not paid and were not asked to post.
• A discount, coupon, or free service.
• An affiliate link or commission on sales.
• A free trip, stay, event access, or hospitality.

The big trap is gifting. Creators assume that "they just sent it to me for free, so it is not an ad" and skip the label. Under the rules, a gifted post absolutely needs disclosure.

What you actually have to do

Disclosure has to be clear, upfront, and impossible to miss. The specifics:

• In captions: put a label like #ad, #sponsored, or "Paid partnership" as one of the first things people see, not buried at the bottom under thirty other hashtags.
• In videos: say it out loud early (within the first few seconds) and show it as on screen text during the sponsored part, on screen long enough to actually read.
• In live streams: disclose at the start, again at the end, and keep it on screen throughout, because viewers join partway through.
• Use the platform's built in tool: Instagram has a "Paid partnership" label and YouTube a paid promotion label. Turning it on is the cleanest proof you disclosed.

Plain language matters too. Vague tags like "#collab", "#sp", or "#ambassador" are not considered clear disclosure. Say it in a way a normal viewer instantly understands.

Why this is suddenly serious

The disclosure guidelines are now backed by the Consumer Protection Act, enforced through the Central Consumer Protection Authority (CCPA). That is the shift that changes everything: a violation is no longer just an industry body asking you to edit a caption. It can trigger a government penalty for a misleading advertisement.

Reported penalties reach up to Rs 10 lakh for an individual and up to Rs 50 lakh for repeat offences. And enforcement is real, not theoretical: ASCI processed well over a thousand influencer cases in the last reporting period. Not disclosing is the single easiest compliance mistake to make, and now the most expensive.

How to stay on the right side of it

The good news is that compliance is genuinely simple once you build the habit:

• Disclose every paid or gifted post, upfront, in plain words. When in doubt, label it.
• Turn on the platform "Paid partnership" tag for brand posts, so there is a clear record.
• AI and virtual influencers must also disclose that they are not a real person, clearly and every time, not just once in a bio.
• Keep it consistent across formats: caption, voice, and on screen text for videos.

One more reason to get this right: brands care. A creator who discloses correctly protects the brand too, so more brands now write disclosure requirements directly into their contracts. Being visibly compliant makes you a safer, more bookable creator.

Where this fits with your other creator obligations

Disclosure is one of two compliance basics every earning creator in India should have sorted. The other is tax: creator income is taxable, and once you cross the threshold, GST registration applies too. If brand deals are becoming real money for you, read our guide to influencer income tax, TDS and GST in India so nothing catches you off guard.

Working with brands through a platform also makes this easier: on InfluencerMetric, campaign briefs spell out deliverables and disclosure so both sides are protected from the start. A clean, compliant deal is better for everyone.

This guide is general information, not legal advice. For the exact current requirements, check the official ASCI influencer guidelines or speak to a professional.

FAQ

Do I have to disclose a free product if the brand did not pay me?

Yes. A free product, gift, discount, or free service is a "material connection" and must be disclosed, even if there was no cash and no formal agreement. Gifted posts are the most common disclosure failure.

What is the correct way to label a sponsored Instagram post?

Put a clear label such as #ad, #sponsored, or "Paid partnership" among the first things a viewer sees, not buried in a block of hashtags, and turn on Instagram's built in "Paid partnership" tag. For videos, also say it out loud early and show on screen text during the sponsored segment.

What are the penalties for not disclosing sponsored content in India?

Because the guidelines are now backed by the Consumer Protection Act through the CCPA, a missing disclosure can be treated as a misleading advertisement. Reported penalties reach up to Rs 10 lakh for individuals and up to Rs 50 lakh for repeat offences.

Do AI or virtual influencers need to disclose anything?

Yes. A virtual or AI influencer must clearly and consistently disclose that it is not a real person, prominently and every time, not just once in a profile bio.

Related: Barter Collaborations With Influencers: How Indian Brands Do Them Right.

Related: Barter Collaboration Meaning: Free Product Instead of Cash.

Sources

• ASCI: Guidelines for Influencer Advertising on Digital Media (2021)
• ASCI.Social: FAQs
• ASCI: Annual Complaints Report 2025-26 press release
• PIB: Centre releases endorsement guidelines for Celebs and Social Media Influencers
• Deccan Herald: New endorsement know-hows for celebrities and social media influencers
• PRS Legislative Research: The Consumer Protection Bill, 2019
• Instagram Help: How to use the paid partnership label
• YouTube Help: Add branded content restrictions and disclosure labels