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Endorsement know-how – Guidelines 2023

Does it ever happen to you that you bought something after watching your favourite actress using that particular item in that advertisement but it was total crap and you regretted it? You must know that you are not the only one and many people regretted doing the same. It’s the tactics used by brands to lure customers to buy their products. This is a grave injustice done to the customers who buy goods due to misleading information.

To protect the rights of consumers, the Ministry of Consumer Affairs issued ‘endorsements know-how’ guidelines for celebrities, influencers and virtual influencers on social media platforms. This guideline has been aimed to curb misleading advertisements and protect the interests of consumers. It has been made mandatory for all social media influencers to disclose all the material facts while endorsing any products, schemes or services. It includes any individual/group who has access to a large audience and has the power to affect their purchasing decision because of the trust gained from their followers based on their knowledge, position and relationship with the audience.

When to disclose?

Whenever there is a material connection between the advertiser and a celebrity including but not limited to monetary compensation, discounts, gifts or free products, trips or hotel stays or any kind of coverage or an award or if there’s any family, personal or employment relationship between them.

How to disclose?

Disclosures must be made in a way that is clear and hard to miss and doesn’t get lost between the hashtags and the links. On social media platforms with limited space, a 2-3 words explanation is also acceptable. ‘Advertisements’, ‘ad’, and ‘sponsored’ terms are also acceptable as far as it is clear and understandable. It should be laid over the endorsement picture enough to get noticed. The language of the advertisement and the disclosure should be the same. In a video advertisement, it must be made in audio as well as video apart from the description. In a live stream, it must be displayed continuously for viewers joining at any time. Apart from these, a separate disclosure can also be made for a better explanation.

Responsibilities of celebrities/influencers

To avoid any legal complexities, celebrities/influencers must do the due diligence before closing up the deal. They must first review the products and services to confirm and satisfy themselves about the truthfulness of the claims being made by the advertising brands.


Violation of any provisions of the guidelines can lead to a heavy penalty that will definitely be more than what they can make out of the advertisements. The Central Consumer Protection Authority (CCPA) can impose a penalty of up to Rs 10 lakhs on manufacturers, advertisers and endorsers. For subsequent offences, a penalty of up to Rs 50 lakhs can also be imposed. The CCPA can also prohibit the endorser of a misleading ad from making any endorsement for up to 1 year which can get extended for subsequent contravention up to 3 years as well.

We hope these guidelines will lessen the number of misleading advertisements and we can make purchasing decisions more fairly.

What are your opinions? Let us know in the comment below.


Beyond PMLA – The Future of Cryptocurrency in a Regulated World

Crypto currency transactions have been gaining popularity worldwide, as they provide a decentralized platform for financial transactions. However, with the increase in use of crypto currency, there is also an increase in the risk of it being used for illegal activities such as money laundering. In order to combat this, the Indian government has included crypto currency under the Prevention of Money Laundering Act (PMLA) 2002.

The PMLA is a law that aims to prevent illegal activities such as money laundering and terrorism financing. It requires financial institutions to keep records of all transactions and report any suspicious transactions to the authorities. With crypto currency now being included under this act, users of crypto currency must follow the same rules and regulations as traditional financial transactions.

Users of crypto currency must register with the authorities to be able to buy or sell crypto currency, verify their identity through a Know Your Customer (KYC) process, maintain accurate records of their transactions, and report any suspicious transactions to the authorities. Financial institutions that deal with crypto currency must implement KYC procedures and monitor transactions for suspicious activity.

Following the rules and regulations under the PMLA can help to keep the crypto currency industry safe and secure for everyone. By implementing KYC procedures and monitoring transactions, financial institutions can detect any suspicious activity and report it to the authorities. This helps to prevent illegal activities such as money laundering and terrorism financing.

In conclusion, the inclusion of crypto currency under the PMLA is a positive step towards ensuring the safety and security of financial transactions. Users of crypto currency must follow the rules and regulations under the PMLA to prevent illegal activities, and financial institutions must implement measures to monitor transactions for suspicious activity. By working together, we can help to keep the crypto currency industry safe and secure for everyone.


What is Non Disclosure Agreement?

When it comes to protecting sensitive information, a non-disclosure agreement or NDA is one of the most powerful tools available. NDAs are legally binding contracts between two or more parties that regulate the sharing of confidential information. In this video, Avani Shukla of LawWiser shares the basics of NDAs, why they’re important, and what to include in one.

A Non-Disclosure Agreement (NDA) is a contract between two or more parties which outlines confidential information that the parties wish to share for certain purposes but wish to restrict access to. The information can be of any type, including business plans, customer lists, formulas, ideas, and other sensitive information. By signing an NDA, the parties agree to keep the information confidential and use it only for specific purposes.

What are the different types of NDAs, including unilateral NDA, when only one party is required to keep the information shared in the agreement confidential, bilateral when both parties agree to keep the information shared in the agreement confidential, and multilateral agreements where the parties agree to keep all information shared in the agreement confidential.

Why it’s important for parties to keep information in an NDA confidential? Having an NDA in place can provide businesses with a number of benefits. First, it can protect businesses from potential liabilities in the event that confidential information is misused or leaked. Second, it can provide businesses with the assurance that their confidential information will remain protected. Finally, an NDA can help businesses maintain healthy relationships with their partners, as it creates a level of trust between the two parties.

After exploring the different types of NDAs and the considerations to keep in mind when entering into an agreement, let’s look into what are the possible consequences for not using an NDA or not following the terms of the agreement. Failure in compliance can result in Criminal Penalties, Civil penalties, financial penalties and official penalties


The Ripple Effects of the SVB Debacle on Indian Entrepreneurs

The recent collapse of Silicon Valley Bank (SVB) has raised concerns among Y Combinator-backed Indian startups. The situation is still uncertain, with startups eagerly waiting for the US Fed to take action. Startups in India who have deposits with SVB might face the brunt of this loss.

The collapse of SVB has once again highlighted the need for Indian startups to have diversified financial portfolios and explore alternative options for banking and financing. With the pandemic already having taken a toll on the startup ecosystem, is this loss yet another challenge that startups in India will have to navigate?

Let’s find out.


The Great Legal Shake-Up: How Liberalization can change the Face of the Indian Legal Industry

The long-awaited wait to allow Foreign firms and foreign lawyers is finally over with the latest BCI ruling.

While it’s too soon to predict how the foreign firms are going to respond to it, it is undoubtedly a significant move and therefore, has raised questions about the impact that it will have on the Indian legal system.

To learn more about this topic, we invite you to watch LawWiser’s panel discussion moderated by Aman Abbas titled ‘The Great Legal Shake-Up: How Liberalisation Can Change the Face of the Indian Legal Industry.’

Our panelists include:

Deepika Chaudhary, Executive Director- Asia Pacific, Xerox India
Phillip D’Costa, Partner and co-head of the India group, Penningtons Manches Cooper
Sameet Gambhir, Vice President (Corp. Law) & Company Secretary, DCM Shriram LTD
Parvesh Kheterpal, Head Legal & Company Secretary, Feedback INFRA
Siddharth Mahajan, Partner, Athena Legal

Join us to gain insights from our esteemed panelists and explore the impact of liberalization on the Indian legal sector.


Social Media Abuse and Criminal Law

Social Media is not a trend but a habit now. It has become a requirement for individuals and organisations. With the increase in the use of social media, there are regular instances of its abuse in various forms. This has triggered a new discussion to regulate social media abuse. But the question remains whether the criminal law in India is well-equipped to deal with a new set of offences.

Watch LawWiser video on Social Media Abuse and Criminal Law where our host Sania Husaini in conversation with Vivek Sood Senior Advocate and Megha Babar, Legal Counsel, Syngenta, discuss various aspects of this issue.

Watch them explain :

– Various types of social media abuse

– Need to define Social Media Abuse

– How are companies dealing with instances of social media abuse and what actions are they taking to protect against such abuse?

– Need for maintaining checks and balances by policymakers while defining social media abuse?

Tune in now to watch all this and much more in detail.


What is Release Deed?

A Release Deed or Deed of Release is a legal document that serves to discharge, extinguish, or waive a claim, right, demand, or obligation. These deeds are generally entered into when one owner of the property is giving up the share in favour of the other party.

Watch this video, where Avani Shukla takes us through the release deed, its purpose, the documents required and much more.

Tune in to learn more.

Write to us at editorial@lawwiser.com


Demystifying Criminal Justice System with Vivek Sood

The criminal justice system is an essential component of any society, responsible for enforcing the law and maintaining order. However, for many people, it can be an intimidating system to navigate. The processes involved at deducing down to a sentence and assessing the veracity of the same is yet another complex phenomenon.

Today, Vivek Sood, Senior Advocate, Supreme Court of India, demystifies the criminal justice system with LawWiser and gives us an insight on his latest book “Chaff & Grain”.

Watch it here.


Things NOT to Miss Out in #Budget2023 – ITC Restriction on CSR expenses in GST & Key Amendments in Customs Laws

#Budget2023 is released and everyone is trying to understand the proposed changes. To help you grasp what these key changes in #budget2023 are, #LawWiser brings to you “Things not to miss out in #budget2023”, where our guest speakers decode the budget and simplify these changes for you.

In this video watch Kumar Visalaksh (Partner), Saurabh Dugar (Principal Associate) and Akanksha Dikshit (Senior Associate), Economic Laws Practice (ELP) share insights on Restriction on ITC on CSR expenses in GST & Key Amendments in Customs Laws brought through this Union Budget 2023.

Tune in to watch and understand more.


Things NOT to Miss Out in #Budget2023 – Personal Tax

The much-awaited #budget2023 is finally out and its buzzing with the proposed changes one such being the changes in personal tax under the new tax regime!

LawWiser brings to you “Things not to miss out in #budget2023”, where our guest speaker decodes these changes and help you understand it better.

In this video our host Avani Shukla interviews Tejas Karnani, Managing Partner, Nesting Corporates Private Limited, where he decodes the most-talked about changes proposed in personal tax under the new tax regime.

Tune in to watch and understand the

✓ The changes introduced in the budget under the new tax regime?

✓ The difference between the new tax regime and the old tax regime?

✓ The key takeaway for the common public and top pointers to keep in mind while filing their returns?

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