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#ad disclosure rules in India: what creators and brands must do

By ClikCollab Editorial Team · Updated

Who sets the rules in India?

Two sets of rules matter.

ASCI (the Advertising Standards Council of India) is the advertising industry's self-regulatory body. Its Guidelines for Influencer Advertising in Digital Media, first issued in 2021 and updated since, are the most detailed practical guide to what a clear disclosure looks like. ASCI can act on complaints, or on its own, against both the brand and the creator (ASCI).

The Department of Consumer Affairs published Endorsement Know-hows! in 2023, a guide for celebrities, influencers and virtual influencers under the Consumer Protection Act. It also says paid or other material connections must be disclosed clearly and prominently (Department of Consumer Affairs, 2023). Misleading endorsements can lead to action under consumer protection law, so this is more than etiquette.

What counts as a "material connection"?

You must disclose any material connection with the brand: anything that could affect how people judge your post. ASCI makes clear this is not only cash. It includes:

  • money, fees or commission
  • free products, with or without conditions attached
  • discounts, perks, trips or event invitations
  • an employment relationship with the brand

A disclosure is needed even if your review is honest and unbiased. If you bought something yourself and have no connection with the brand, no label is needed.

Which labels are clear enough?

ASCI lists labels that ordinary viewers understand, including:

Label When to use it
#ad or Advertisement Paid promotion.
#sponsored Paid promotion.
#collab / Collaboration, #partnership A paid or ongoing tie-up with the brand.
Free gift You received a free product.
Affiliate You earn a commission through your link or code.
Employee You work for the brand.

The platforms' own labels count too: "Paid partnership" on Instagram and "Includes paid promotion" on YouTube. ClikCollab's own share captions use #ad, which is the simplest and clearest choice.

Which mistakes should I avoid?

  • Only tagging the brand. A tag doesn't tell viewers you're paid.
  • Hiding the label in your bio, at the end of a long caption, or inside a block of hashtags and links.
  • Made-up or vague labels that viewers may not understand.
  • Tiny or fleeting overlays that nobody can read in time.

Where should the disclosure go?

ASCI's rule of thumb is upfront and prominent:

  • Captions: put the label at the start of the caption, where it's visible without tapping "more".
  • Pictures: put the label on the image itself, not only in the caption.
  • Reels, Shorts and videos: show the label on screen, long enough to read, and say it if the video is mainly speech. Put it in the caption too.
  • Live streams: announce it at the start and at the end.
  • Audio: say it at the beginning, at the end, and after breaks.
  • Check on a phone. Most people will see your post on mobile.

Are built-in "Paid partnership" labels enough?

Use them whenever the platform offers them, and add your own clear label as well. It stays your job as the creator to check that the disclosure is actually visible.

Does the language matter?

Yes. Disclose in a way your audience will understand. If your Reel and caption are in Hindi, Tamil or Bengali, add the label in that language as well as #ad, so nobody misses it. A label in a language your viewers don't read isn't a clear disclosure.

What does a good disclosure look like?

Here are two simple examples.

  • Instagram Reel caption: "#ad Trying the new XYZ sunscreen for a week in Chennai heat. Here's what I noticed…", with the "Paid partnership" label turned on and "Ad" shown on screen in the first seconds of the Reel.
  • YouTube integration: say "This part of the video is sponsored by XYZ" before the segment starts, tick "Includes paid promotion" when you upload, and start the description with "#ad".

In both cases, a viewer knows it's an ad before they've formed an opinion about the product.

What if a disclosure was missed?

Fix it as soon as you notice: edit the caption, add the label, and turn on the platform's paid-partnership tool if you can. If ASCI or the brand asks you to correct or remove a post, do it promptly. Repeated problems can damage your standing with brands, as well as with your audience.

What about virtual influencers and special topics?

  • Virtual (AI) influencers must disclose upfront that they are not real people, as well as any brand tie-up.
  • Health and finance. Creators who give health, nutrition or financial advice in sponsored content need the right qualifications, and ASCI asks them to show those upfront (for example a SEBI registration for investment advice).
  • Do your homework. ASCI asks creators to check that the brand can back up the claims they're asked to make.

Are brands responsible too?

Yes. ASCI treats disclosure as a shared responsibility. Brands should put disclosure rules in every brief and agreement, check posts when they go live, and ask for a fix when a label is missing, unclear or hidden.

Quick checklist for creators

  • Any money, free product, discount, trip, affiliate link or job with the brand? Disclose it.
  • Use #ad (or #sponsored, #collab, Free gift, Affiliate, as fits).
  • Put it first, before other hashtags, and visible without tapping "more".
  • In Reels and videos, show it on screen and put it in the caption.
  • Turn on the platform's Paid partnership label when available.
  • Disclose in the language of the post.

Quick checklist for brands

  • Write the disclosure rules into the brief and the agreement.
  • Let creators use the platform's paid-partnership tool, and approve it when asked.
  • Review live posts, and ask for a correction if a disclosure is missing, unclear or hidden.
  • Never ask a creator to hide or soften a disclosure.

This guide is general information, not legal advice. For advice about your situation, talk to a lawyer.

Sources

  1. ASCI, Guidelines for Influencer Advertising in Digital Media · checked 30 October 2026
  2. Department of Consumer Affairs, Endorsement Know-hows! for celebrities, influencers and virtual influencers on social media platforms (2023) · checked 30 October 2026

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