70% of Indians likely to buy influencer-endorsed products, transparency key to trust: Report

The report also highlighted that customers are more likely to trust an influencer if they are transparent and honest about their brand association. Relatable lifestyle and content, as well as personal stories, were the other two factors that improved customers' trust.

On the other hand, not being honest and transparent was the top reason why people might lose trust in influencers. Other top reasons were repetitive content and promoting too many products.

The ASCI received 2,767 complaints against brands and influencers for not declaring connections since they released guidelines in May 2021. Non-transparency was among the prime reasons why influencers lost the trust of their followers, according to Manisha Kapoor, CEO and secretary general of ASCI.

Kapoor further stated that non-disclosures are potential violations of the law, as the Central Consumer Protection Authorities also now require disclosure of material connections between brands and influencers.

Instagram was found to be the top platform where most violations occurred. In 2021-22, the top complaints were against virtual digital assets (VDAs), while personal care was the top category where such violations occurred last year.

The report highlights the growing importance of social media influencers in the advertising industry, but also underlines the need for transparency and honesty to maintain consumers' trust. Brands and influencers need to ensure they follow the guidelines to avoid potential legal violations and maintain the trust of their followers.