ASCI Influencer Guidelines: #ad Rules for Creators
ASCI and government disclosure rules for Instagram creators in India, simply explained: which labels to use, where they go in Reels, Stories and lives, barter and affiliate, and the penalties.
If a brand gives you anything for a post, a fee, a free product, a trip or a commission, India's advertising rules say your audience must be told, clearly and upfront. Here is what that means in practice for Instagram creators.
Who the rules cover
Two sets of rules apply:
- The Advertising Standards Council of India (ASCI) guidelines for influencer advertising, in force since 14 June 2021.
- The government's Endorsement Know-hows from the Department of Consumer Affairs, issued in January 2023, which the Central Consumer Protection Authority (CCPA) can enforce.
They cover every creator who promotes a brand, of any size, including virtual influencers.
What counts as a "material connection"
You must disclose whenever there is a material connection with the brand. That includes:
- Money (a paid post).
- Free products, even if you were not asked to post (barter).
- Commission on sales (affiliate links and codes).
- Trips, hotel stays, event passes and gifts.
- Being an employee or having a family or business tie to the brand.
Which labels to use
ASCI lists these labels: #ad, #collab, #sponsored, #partnership, #promo. Use one of them, in plain sight, not a vague or shortened tag. Instagram's own "Paid partnership" tag is useful, but put a label in the caption or on the video as well.
Where the label must go
| Format | Where the disclosure goes |
|---|---|
| Feed post or carousel | In the first two lines of the caption, before "more", not among hashtags at the end |
| Reel or video | On the video itself, readable, for long enough to notice, plus in the caption |
| Story | On each Story frame that promotes the product |
| Live stream | Shown for at least 5 seconds at the end of every minute, or across the stream |
| Audio or podcast | Said at the start and the end |
The test from the government's guidance: the disclosure should be "extremely hard to miss".
Barter and affiliate posts need it too
This is where most creators slip:
- Barter: a free product is a material connection, so a barter Reel needs #ad or #collab even though no money changed hands. See our barter collaboration guide.
- Affiliate: a link or code that earns you commission is a material connection. Add #ad, and say the link earns you a commission. See Instagram affiliate marketing in India.
Extra rules for health and finance creators
In 2023 ASCI added rules for two areas:
- Health and wellness creators must have relevant qualifications (for example a registered doctor, nutritionist or physiotherapist) and show them when giving health advice in a promotion.
- Finance creators giving investment advice must be registered with SEBI and show the registration.
What happens if you do not disclose
ASCI can flag non-compliant posts and ask for them to be changed or taken down. Under consumer law, the CCPA can act against misleading endorsements, with penalties reported up to ₹10 lakh, rising to ₹50 lakh for repeat offences, and the power to bar an endorser for up to one year (three for repeats).
What brands are responsible for
Brands are expected to make disclosure part of the brief, check posts before they go live and ask for fixes. A good brief tells the creator which label to use and where. On Zorrid, every brief and every draft review happens before a post goes live, which is the right moment to check the label.
Your quick checklist
- Any payment, product, commission or trip? Disclose.
- Use #ad, #collab, #sponsored, #partnership or #promo.
- Put it in the first two lines and on the video.
- Label every Story frame.
- Only promote what you have actually used, and do not make claims the brand cannot back up.
Sources
Questions people ask
Is #collab enough to disclose a barter post?
#collab is one of the labels ASCI lists, so it can be used, as long as it is placed upfront in the first two lines and on the video, not hidden among hashtags.
Where should #ad appear in a reel?
On the video itself, readable for long enough to notice, and in the first two lines of the caption. It should be extremely hard to miss.
What is the penalty for not disclosing?
ASCI can ask for the post to be fixed or removed. The CCPA can act against misleading endorsements, with penalties reported up to ₹10 lakh, or ₹50 lakh for repeat offences.
Does Instagram’s Paid Partnership label count?
It helps, but add a clear label such as #ad in the caption and on the video as well, so the disclosure is upfront and hard to miss.