New Delhi: The central government is going to come up with strict guidelines for YouTube channels. ET Now reports that the Center will soon issue guidelines for influencers. The main suggestion is that vloggers and influencers must disclose the information of paid promotions in collaboration with brands etc. on social media. They will now have to put a disclaimer on every post.
The same applies to celebrities. The Centre’s move is aimed at protecting consumers from paid promotions that make false promises about products. Within the next 15 days, the Union Ministry of Consumer Affairs may issue instructions related to the matter. It will include dos and don’ts for influencers.
In May, Consumer Affairs Secretary Rohit Kumar Singh held a virtual meeting with stakeholders to discuss the impact of fake and misleading reviews on online consumers and prepare a roadmap to prevent such a scenario. Influencers who do not follow the instructions may also have to pay heavy fines. According to the report, the penalty will be Rs 10 lakh for the first violation, Rs 20 lakh for repeated violations, and Rs 50 lakh for repeated violations.
A law has come into force requiring YouTubers and others who receive free goods from companies to pay their taxes. The guidelines issued by the Income Tax Department came into effect on July 1 this year. According to the new law, influencers will have to pay 10 percent TDS if they receive products like cars, mobiles, clothes, and cosmetics from their respective companies. However, products that have to be returned to the company after use are not covered under Section 194R.
