ASCI eases qualification rules for generic financial, health product promotions

Influencers do not need professional qualifications to share generic information about financial or health products and services, said the Advertising Standards Council of India (ASCI) on Monday.        

So far, financial and fitness influencers have been required to have the necessary qualifications and certifications to prescribe any product or service on social media. Now, the requirement will apply only to technical advice.

“Influencers who do not have the required qualifications can share generic information about products or services that are not in the nature of technical advice. For example, an insurance company using an influencer to talk about the need for annual health checkups or a health food company tying up with a chef or food blogger to promote a meal service,” reads the latest change in guidelines.

This ASCI move aims to extend the mandate of brand endorsement to experts who do not have certifications but have a reputation in the industry due to their experience and goodwill that can enhance a brand’s messaging.

"Influencer marketing has matured beyond simple endorsements, and now often involves strategic partnerships for various aspects of brand communication. The updated guidelines bring in the required nuance for influencers operating in the BFSI (banking, financial services and insurance) and health and nutrition space,” said Manisha Kapoor, secretary general of the ASCI, in a press statement on Monday.

Before this, ASCI influencer guidelines, introduced in May 2021, were amended in August 2023 to include preconditions such as Sebi registration or other relevant financial credentials for finfluencers and relevant qualifications such as a medical degree or certificate in nursing, nutrition, dietetics, physiotherapy, psychology, etc., for fitness influencers. 

The update also obligated these influencers to clearly declare and display their credentials in their profile and posts.

BFSI and health and nutrition products and services are two of the most crucial and highly regulated sectors. The losses to consumers in these sectors due to improper advice can be “substantial” and “serious”, said the ASCI’s guidelines after introducing qualification requirements.