Influencer Marketing and Disclosure Policy

1. Purpose and status

1.1 Tatvata connects Brands and Creators. Content that a Creator publishes under an Agreement is advertising, and Brands and Creators are each bound by the law and the self regulatory code that govern it. This policy states what the Company requires of them. It forms part of the User Agreement.

1.2 The Company is a facilitator. It does not publish the advertisement, does not approve content before publication, and does not give legal advice. Nothing in a Pass, a verification layer, a score or an Agreement template is a statement that content complies with advertising law.

1.3 The instruments this policy draws on are listed in section 11. The guidelines of the Advertising Standards Council of India (ASCI) are a self regulatory code. The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 are issued by the Central Consumer Protection Authority under the Consumer Protection Act, 2019.

2. Definitions

"Influencer" means a person who has access to an audience and the power to affect the audience's purchasing decisions or opinions about a product, service, brand or experience because of their authority, knowledge, position or relationship with the audience. A Creator on the Platform is an Influencer for this policy.

"Advertiser" means the Brand whose product or service is promoted.

"Material connection" means any connection between an Advertiser and an Influencer that may affect the weight or credibility of what the Influencer says. It includes money or other compensation, free products with or without conditions and including those received unsolicited, discounts, gifts, contest and sweepstake entries, trips or hotel stays, media barter, coverage, awards, and any family or employment relationship.

"Disclosure label" means a label that identifies content as advertising in the manner section 5 requires.

3. Who is responsible

3.1 The Advertiser and the Influencer are each responsible for the disclosure of the material connection and for the content of the advertisement.

3.2 The Influencer is responsible for making the disclosure. The Advertiser is responsible for ensuring that the content as posted complies, and shall, where needed, call on the Influencer to delete or edit the content or the disclosure label.

3.3 Nothing in the Terms of Use shifts that responsibility to the Company.

4. Genuine endorsement and due diligence

4.1 An endorsement shall reflect the genuine and reasonably current opinion of the Influencer, shall be based on adequate information about, or experience with, the product or service, and shall not be deceptive.

4.2 A Creator shall not endorse a product or service that the Creator has not used or experienced, or about which the Creator has not carried out due diligence, where the law or the guidelines call for it.

4.3 An Advertiser shall not instruct a Creator to make a claim that the Advertiser cannot substantiate, or to omit a disclosure.

4.4 A misleading advertisement in any form, format or medium is prohibited. The Central Consumer Protection Authority may impose a penalty of up to INR 10 lakh and, for a subsequent contravention, up to INR 50 lakh, and may prohibit an endorser from endorsing for a period.

5. When and how to disclose

5.1 When. A disclosure is required whenever there is a material connection, even if the opinion is genuine and unbiased. A disclosure is not required if there is no material connection and the Creator is simply sharing a product they bought and like.

5.2 Labels. Any one or more of the following may be used, namely Advertisement, Ad, Sponsored, Collaboration, Partnership, Employee, Free gift, the platform's "Paid Partnership" tag on Instagram, Affiliate, and the "Includes Paid Promotion" tag on YouTube. Use of the platform's own disclosure tool is encouraged in addition to the Creator's own label.

5.3 Placement. The disclosure shall be upfront and prominent, so that an average consumer cannot miss it. It is likely to be missed if it appears only on a profile or "about me" page, in a bio, at the end of a post or video, anywhere that needs a click on "more", or buried in a group of hashtags or links.

5.4 Pictures and videos without text. For a picture or video post with no accompanying text, such as a story, the label shall be superimposed over the picture or video so that it can be seen clearly.

5.5 Duration in video. For a video of 15 seconds or less the label shall remain for at least 3 seconds. For a video longer than 15 seconds and shorter than 2 minutes it shall remain for one third of the length of the video. For a video of 2 minutes or more it shall remain for the whole of the section in which the promoted brand or its features or benefits are mentioned.

5.6 Live streams and audio. In a live stream the label shall be announced at the beginning and at the end, and added to the caption if the post remains visible afterwards. In audio the disclosure shall be announced at the beginning and the end and before and after every break.

5.7 Language. The disclosure shall be in English or in the language of the advertisement, in a way that an average consumer understands.

5.8 Virtual influencers. A virtual influencer shall also disclose upfront and prominently that the audience is not interacting with a real human being.

5.9 No label needed to be asked for. A Creator shall not wait for the Brand to ask for a label. A Brand shall not discourage one.

6. Substantiation of claims

6.1 A Creator should satisfy themselves that the Advertiser can substantiate the claims the Creator is asked to make. A Brand shall give the Creator the evidence on request.

6.2 A claim about health, nutrition, safety, results, price or comparison shall be accurate, complete and not misleading, and any disclaimer shall not hide material information or correct a misleading claim.

7. Finance and health content

7.1 A Creator who provides advice, promotes, or comments on the merits of commercial goods or services in banking, financial services and insurance, or in health and nutrition, shall hold the necessary qualifications and certifications to give that information and advice.

7.2 For investments or securities the Creator shall be registered with the Securities and Exchange Board of India and shall state the registration number with their name and qualifications. For other financial advice the Creator shall hold a suitable qualification or licence, such as an insurance licence or a professional accountancy or company secretary qualification. In each case the Creator shall observe the disclosure requirements of the sector regulator.

7.3 For health and nutrition the Creator shall hold a relevant qualification, such as a medical degree or certification as a nurse, nutritionist, dietician, physiotherapist or psychologist, appropriate to the advice given.

7.4 The Creator shall state these qualifications upfront. They shall be superimposed on visuals or given in the opening remark of a video, placed at the start of a text post or blog before the reader reaches the post, and announced at the beginning of audio. The Creator shall be able to prove them if asked.

8. Campaign terms and the Platform's role

8.1 A Campaign has a field for the Brand's disclosure requirements. What a Brand writes there is the Brand's own statement. The Company records it as written and asserts nothing about whether it is legally sufficient.

8.2 A Brand shall state in the Campaign, or in the Agreement, the disclosure label and placement the Creator shall use, consistently with section 5, and shall not require anything inconsistent with it.

8.3 The Company may remove a Campaign, suspend an Account, or terminate or suspend an Agreement or a Pass in accordance with the Terms of Use where content or instructions breach this policy.

9. Children and restricted products

9.1 A Brand shall not publish a Campaign that is directed at children in a manner the law prohibits. Advertisements that target or feature children carry additional restrictions, including on exaggerating a product, on health or nutrition claims without scientific substantiation, and on featuring personalities from sport, music or cinema for products that require a health warning or cannot be bought by children.

9.2 A Brand shall not publish a Campaign for the promotion, advertisement or endorsement of an activity or product that is prohibited by law, including an online game that is not a permissible online game.

10. Reporting and enforcement

10.1 A person may report content or a Campaign that appears not to comply, using the Grievance and Data Rights Policy.

10.2 The Company may, in accordance with the Terms of Use, remove content, suspend or terminate access, and report conduct to the appropriate authority.

11. Instruments referred to