Influencers Scam on Social Media. Unveiling the Shadows | by Learner101 | Aug, 2023

The Unethical Underbelly

However, the allure of quick money and fame has given birth to a dark underbelly of influencer marketing. This shadowy side involves influencers, agencies, and brands conspiring to deceive their audience. By intentionally omitting the fact that their content is a paid promotion, influencers effectively scam their followers into believing they genuinely endorse a product. This misleading tactic capitalizes on the trust influencers have built with their followers, eroding that trust and replacing it with betrayal.

Anatomy of the Scam

The influencer marketing scam involves three major players: the brand, the agency, and the creator (influencer). Brands seek to increase their market reach and sales, often hiring agencies as intermediaries to scout and manage influencers for them. Creators, with their established follower base, are then approached to create content that seamlessly integrates the brand’s product. The cycle comes full circle when consumers purchase the promoted products, and everyone profits — except for the deceived audience.

The Ethical Quandary

The ethical dilemma arises when influencers accept deals without due diligence. Many fail to adequately research the products they promote, endorsing items of dubious quality or even products that may be harmful to their audience’s well-being. In India, the Advertising Standards Council of India (ASCI) sets guidelines for fair advertising practices. These guidelines stipulate that creators must label their content as brand promotions and endorse only those products they genuinely believe in. However, the lack of strict regulations governing influencer marketing has allowed unscrupulous practices to proliferate.

The Impact on Trust and Consumer Safety

Influencers hold a unique position of trust with their followers. When they surreptitiously promote products, they exploit this trust for personal gain. The consequences extend beyond mere deception. In cases where promoted products are of low quality or pose health risks, consumers are directly impacted. Health and safety concerns cannot be ignored, as unsuspecting consumers are exposed to products with potentially harmful consequences. This practice not only damages the credibility of influencers but also undermines the overall integrity of the influencer marketing landscape.

ASCI’s Alarming Findings

A recent report by the Advertising Standards Council of India revealed a grim reality. Among the 8000 ads reviewed, a staggering 6000 violated ASCI’s guidelines on digital platforms. Fantasy betting ads, often targeting the vulnerable 15–25 age group, stood out as a significant offender. These ads misleadingly portrayed betting as skill-based gaming while omitting crucial disclaimers about financial risks and addiction. Education and healthcare sectors also emerged as culprits in non-compliant influencer marketing practices.

Collective Action for Reform

Addressing this issue requires collaborative efforts from all stakeholders. To begin with, consumers hold the power to drive change. Vigilance and reporting misleading content can force influencers and brands to reconsider their deceptive tactics.

Furthermore, ASCI must amplify its efforts to educate influencers about the importance of transparent content disclosure and responsible product endorsement.

Regulatory bodies need to step up their game to monitor and enforce influencer marketing guidelines. Stricter regulations can deter scams and encourage ethical practices. Moreover, brands and agencies must recognize their role in perpetuating this deceitful culture and shift towards transparent collaborations that prioritize consumer well-being over short-term gains.

Creators’ Moral Responsibility

Creators themselves must introspect and uphold their moral responsibility. The temptation of financial rewards should not overshadow their duty to their audience. By conducting thorough due diligence, creators can ensure that the products they promote align with their values and meet quality standards. Transparency is key; creators must explicitly state when a piece of content is a paid promotion.