Introduction
The last decade witnessed an increasing number of nutraceuticals — in the form of teas, protein powders, or hair-growth gummies — being marketed by influencers and celebrities on social media platforms. The Indian nutraceutical market is experiencing significant growth, mirrored by the meteoric rise in influencer marketing as a potent channel to reach health-conscious consumers. Reports suggest that the Indian nutraceutical market is projected to touch $10.19 billion by 2026. While collaborations between nutraceutical brands and social media influencers offer compelling opportunities for engagement and sales, this intersection operates within a complex and strictly regulated legal environment. Navigating this landscape requires adherence to a multi-layered framework, encompassing inter alia the regulations laid down by the Food Safety and Standards Authority of India (“FSSAI”), the code set out by Advertising Standards Council of India (“ASCI”), and the Consumer Protection Act, 2019 (“CP Act”). In this article, we outline the key regulatory considerations and underscore the necessity of ensuring compliant nutraceutical marketing campaigns in India.
FSSAI: The Foundation for Nutraceutical Products & Claims
The FSSAI is the primary regulatory body governing manufacturing, labelling, distribution, advertising, and sale of food, including nutraceuticals and health supplements. Entities operating in this sector must first assess their product category in terms of inter alia the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Prebiotic and Probiotic Food) Regulations, 2022 (“Nutra Regulations”), and subsequently apply for and obtain the appropriate licences, while ensuring that the product’s ingredients comply with specified schedules (covering vitamins, minerals, botanicals, probiotics, etc.), meet quality control standards, and adhere to the prescribed packaging and labelling requirements.
A crucial function of the FSSAI is to regulate health and nutrition claims. Entities must ensure that the claims and statements made on the product’s packaging/ label and advertisements are permissible under the Nutra Regulations and Food Safety and Standards (Advertising and Claims) Regulations, 2018. The FSSAI proactively monitors the claims and statements made by food businesses to protect consumers from any misleading advertisements and claims. Advertisements or claims in respect of a food product that undermines the importance of a healthy lifestyle or portrays the food product as a complete replacement of normal meals are not permitted. Further, food businesses are also prohibited from advertising or making claims undermining products of other manufacturers to promote their own food products or influence consumer behaviour. Making specific claims about risk reduction of diseases not listed under the Schedule thereunder also requires mandatory pre-approval from the FSSAI, before the product is marketed with such claims. Furthermore, all claims must be backed by robust scientific substantiation. Claims suggesting a direct health benefits linked to the food product must be supported by statistically significant results from well-designed human intervention studies and published in reputable scientific journals. Critically, all claims made in advertising, including influencer content, must be consistent with the information presented on the product label.
Marketing correspondences must focus on general wellness, approved structure/ function claims, or permitted nutrient content claims, meticulously avoiding any language that implies therapeutic effects. This necessitates careful legal review of all marketing materials, including influencer scripts and visuals, to prevent inadvertent violations. Section 53 of the Food Safety and Standards Act, 2006 (“FSS Act”), imposes a penalty of up to ₹10 lakh for misleading advertisements related to food, which includes false descriptions or claims to mislead about the nature, substance, or quality. Additionally, the FSS Act prescribes penalties for manufacture/ sale of substandard or misbranded food.
ASCI & CP Act: Governing the Message and the Messenger
Further, the advertising message and the messenger (i.e., the influencer) are governed by the ASCI guidelines and the provisions of the CP Act, enforced by the Central Consumer Protection Authority (“CCPA”). ASCI, a self-regulatory organisation, sets ethical standards for advertising through its Code for Self-Regulation of Advertising Content in India (“Code”). This Code requires ads to be legal, decent, honest, truthful, not hazardous, and fair, while observing fairness in competition. Notably, ASCI has partnered with the FSSAI to comprehensively monitor misleading advertisements in the food and beverages industry.
For influencers promoting food products, ASCI’s Guidelines for Influencer Advertising in Digital Media (“Guidelines”) hold significant relevance. The Guidelines define an “influencer” as “someone who has access to an audience and the power to affect their audiences’ purchasing decisions or opinions about a product, service, brand or experience, because of the influencer’s authority, knowledge, position, or relationship with their audience”. The Guidelines inter alia mandate a disclosure label on all advertisements published by social media influencers whenever a ‘material connection’ exists between an advertiser and an influencer. A “material connection” is broadly defined as encompassing not just a monetary payment, but also free products (even unsolicited), discounts, trips, media barter, or other perks that could affect the credibility of the endorsement.
The Guidelines specify approved disclosure labels (e.g., ‘Ad’, ‘Sponsored’, ‘Collaboration’, ‘Partnership’, ‘Free gift’), placement rules (must be hard to miss, not buried in hashtags or ‘see more’ sections), and visibility/ duration requirements for various formats (static posts, image only stories, videos, live streams and podcasts). The detailed nature of these requirements signal that passive or hidden disclosures are insufficient; compliance demands active integration of clear labels into the content format itself, ensuring the average consumer can easily identify paid promotions. Crucially for nutraceuticals, ASCI added specific requirements for health and wellness influencers. They must possess relevant qualifications (e.g., medical degree, certified nutritionist, dietician) and prominently disclose them in their content.
The CP Act defines a “misleading advertisement” as one that falsely describes a product/ service, gives a false guarantee, misleads about nature/ substance/ quality/ quantity, constitutes an unfair trade practice, or deliberately conceals important information. “Unfair trade practices” include misrepresenting standards or benefits. The CCPA has significant powers to investigate complaints, order discontinuation or modification of misleading ads, impose penalties, and issue binding guidelines, such as the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, and subsequent additional influencer guidelines for health and wellness celebrities, influencers and virtual influencers.
Importantly, both ASCI and the CP Act framework establish dual responsibility. The brand is responsible for the product’s compliance and ensuring the influencer adheres to guidelines, while the influencer is responsible for accurate disclosures and the veracity of their personal endorsement. Endorsers, including celebrities and influencers, are explicitly liable under the CP Act. There is a clear convergence between the ASCI’s self-regulatory standards and the legally binding CP Act/ CCPA framework. ASCI often flags non-compliance to government bodies, and its guidelines frequently inform or align with CCPA directives.
The primary challenge lies in promoting a health-related product (subject to the FSSAI’s strict claim rules) using influencers (subject to ASCI/ CP Act disclosure and veracity rules). The influencer’s content must strictly adhere to the FSSAI-compliant or pre-approved claims for specific nutraceuticals. Any deviation, exaggeration, misrepresentation, or implication of disease cure/ prevention by the influencer creates a violation, regardless of the product’s compliance. A deceptive health endorsement can arise if claims are unsubstantiated, benefits are exaggerated, cure/ prevention is implied, material risks are omitted, or the endorsement is made by an unqualified influencer. Testimonials must be genuine and reflect typical experiences (if applicable), requiring disclosure, if paid. Furthermore, social media platforms have also implemented their own branded content policies and restrictions (e.g., on unsafe supplements) that must be followed in addition to Indian law. Ensuring disclosure visibility can also be challenging across different platforms, with some lacking native tools, requiring careful manual implementation by the influencer.
This complex interplay means a single nutraceutical influencer campaign faces potential scrutiny from multiple bodies: FSSAI (product claims), ASCI (disclosure, ethics, influencer qualifications), and CCPA (misleading consumers, endorser liability). An error in one area, such as an influencer making an unapproved health claim or failing to disclose properly, can trigger action under several regulatory frameworks simultaneously. Brands cannot merely select influencers based on follower count or engagement rates for promoting nutraceuticals. They must undertake rigorous verification of credentials, potentially limiting the available influencer pool and demanding a more sophisticated vetting process compared to other product categories.
Understanding the Stakes: Risks and Penalties
Influencer marketing for nutraceuticals in India carries significant legal and financial risks for non-compliance. Violations under the FSS Act, specifically Section 53, relating to misleading food advertisements, can result in fines of up to ₹10 lakh. Similarly, the CP Act, under Section 21(2), penalises false or misleading advertisements by manufacturers or endorsers with fines of up to ₹10 lakh for the first offense and up to ₹50 lakh for subsequent offenses. Furthermore, Section 21(3) thereunder empowers the CCPA to prohibit endorsers of false or misleading advertisements from making endorsement of any product or service for a period of up to 1 (one) year for the first offense and up to three years for subsequent offenses.
Concluding Thoughts
The synergy between India’s growing nutraceuticals sector and the persuasive power of influencer marketing presents undeniable commercial opportunities. However, this potential is tightly bound by a complex, multi-agency regulatory framework that is actively enforced. FSSAI dictates product standards and claim boundaries, while ASCI and the CCPA (under the CP Act) govern advertising ethics, disclosures, and endorser accountability, imposing severe penalties for violations. Achieving robust compliance is not merely a final legal check, it must be embedded operationally across functions. It begins with claim strategy during product development, guides influencer selection and contracting, shapes brief creation and content approval, and necessitates ongoing monitoring. Successfully navigating this requires more than just marketing acumen; it demands rigorous legal and regulatory diligence woven into the fabric of every campaign. Proactive compliance — from product formulation and claim approval to influencer vetting and content review — is not optional, but crucial for mitigating risks and achieving sustainable success.
For further information, please contact:
Biplab Lenin, Partner, Cyril Amarchand Mangaldas
biplab.lenin@cyrilshroff.com
