It is brand-deal season. Between now and Diwali, a lot of creators will get gift hampers, festive collabs and "just tag us" requests. Most will post them. A fair number will label them badly, with "#collab" buried in a block of 25 hashtags at the end of a caption. In India that is not a style choice. Two sets of rules apply to paid and gifted posts, and one of them comes with penalties of up to ₹10 lakh. Here is what each requires, in practical terms.
The two rulebooks
1. The government's "Endorsement Know-hows!" In January 2023 the Department of Consumer Affairs issued guidelines for celebrities and influencers. As Onmanorama reported, breaking them can bring action under the Consumer Protection Act: the Central Consumer Protection Authority can impose penalties up to ₹10 lakh, up to ₹50 lakh for repeat violations, and bar an endorser from endorsing for one to three years.
2. ASCI's influencer guidelines. The Advertising Standards Council of India is the industry's self-regulator. Its rules are more specific about labels, placement and timing. ASCI does not fine you, but it can name non-compliant influencers publicly, according to its FAQ, and brands increasingly put ASCI compliance into contracts.
Follow ASCI's specifics and you will generally satisfy both.
What counts as a "brand deal"
More than most creators think. ASCI defines a material connection as any link between you and a brand "that may affect the weight or credibility of the representation". The government's list covers money, free products, discounts, gifts, trips or hotel stays, media barters, coverage and awards, and family, personal or employment relationships.
So all of these need a label:
The Diwali hamper a brand sent "with no obligation", if you post it.
A free stay at a resort in exchange for Reels.
An affiliate code that earns you commission.
Your cousin's candle brand, if you promote it.
"No obligation" gifts are the classic grey zone. If you would not have posted it without receiving it free, label it.
Which labels work
ASCI's FAQ lists the permitted labels: #Advertisement, #Ad, #Sponsored, #Collaboration, #Partnership, #Employee and #Free gift. The government list is narrower. According to this summary of the Know-hows, the terms it accepts are "advertisement" or "ad", "sponsored", "paid promotion" and "paid".
The simple way to satisfy both: use #Ad, #Advertisement or #Sponsored. They appear on both lists. #Collab on its own fits ASCI's list but not the government's. Clever variations like #sp, #spon or #thanksbrand count under neither.
The government's guidelines add that disclosures should be in simple, clear language, hard to miss, and "should not be mixed with a group of hashtags or links". In other words, the label is not part of your hashtag strategy. It goes where people read first.
Where and how long, format by format
Photos and carousels
Put the label on the image itself, superimposed, so it is visible without opening the caption. Add it to the start of the caption as well. Both guidelines push for disclosure that is visible without scrolling.
Stories
Superimpose the label on every frame that features the brand, not just the first. People tap through stories quickly.
Reels and videos
ASCI's timing rules:
Up to 15 seconds: label on screen for at least 3 seconds.
15 seconds to 2 minutes: label on screen for at least one-third of the video.
Over 2 minutes: label on screen for the whole of each section where the brand or its features are mentioned.
The government's guidelines also ask for disclosure in the audio and the visual of a video, not just in the description. A five-second spoken line works: "This video is a paid partnership with [brand]."
Live streams
Keep the disclosure on screen continuously for the whole stream, per the government guidelines. A pinned comment alone will scroll away.
The platform's "Paid partnership" tag
Instagram and YouTube both offer built-in paid-partnership labels. Turn them on; they help. But the Indian rules describe a clear label in the content itself, so treat the platform tag as an extra layer rather than your only disclosure.
Do not forget the claims
Disclosure is half the job. If a festive skincare kit promises "glow in 7 days", you are repeating that claim to your audience. The government's guidance says an endorser "must have used such a product or service" and should confirm that the advertiser's claims are likely to be substantiated. If you have not tried it, do not endorse it. If a claim sounds medical or financial, ask the brand for proof in writing before you say it on camera.
A quick pre-post checklist
Is there any money, gift, discount, trip or relationship involved? Label it.
Is the label #Ad, #Advertisement or #Sponsored, which both rulebooks accept?
Is it on the image or video itself, not only in the caption?
For video: is it on screen long enough, and said out loud?
Is it separate from your hashtag block?
Have you used the product, and can you stand behind every claim?
Did you switch on the platform's paid-partnership tag as well?
The honest bit: clear labels do not kill engagement the way creators fear. Audiences already know brand deals pay your bills. What erodes trust is the feeling of being tricked. Label clearly, pick brands you would recommend anyway, and the "#ad" becomes background noise.
General information, not legal advice. For a large contract, have the terms reviewed.
