94% of Misleading Ads Found Online: ASCI Report Highlights Influencer Breaches and Illegal Promotions
An overwhelming 94% of misleading advertisements in India were found online in FY24-25, according to the latest report by the Advertising Standards Council of India (ASCI). The report highlights serious compliance issues, particularly in sectors like offshore betting, real estate, and influencer marketing.
Misleading AdsDigital AdvertisingAsciInfluencer MarketingGreenwashingReal EstateMay 28, 2025
Of the 7,199 advertisements scrutinised by ASCI between April 2024 and March 2025, nearly all originated in the digital space. A staggering 98% of those ads were found to require modification, indicating serious lapses in advertising ethics and compliance. We found that 68% of these digital ads were sponsored posts on social media, while the rest were promotions on brand websites and social handles.
Leading the list of violative sectors were offshore betting platforms, real estate, personal care, and healthcare. Offshore betting alone accounted for 3,081 violative ads, nearly doubling from the previous year. ASCI flagged a sharp rise in illegal gambling promotions often camouflaged as influencer content or disguised endorsements on community pages and fan handles. These included fake testimonials, impersonation of celebrities, and exaggerated claims of betting profits, with embedded links driving traffic to banned websites. A total of 318 influencers were found promoting these platforms, many without proper disclosure.
Real estate came second, with 1,767 non-compliant ads, including 1,755 flagged under the ASCI-MahaRERA agreement for violating mandatory disclosure norms like project registration numbers and QR codes. Based on ASCI’s reporting, MahaRERA has already initiated action against several builders.
The report also highlighted serious lapses in influencer marketing. Out of 1,015 influencer ads examined, 98% violated disclosure guidelines. One-third of these influencers were found promoting products prohibited by law—such as betting apps and unregulated health remedies. ASCI’s own dipstick study revealed that 69% of influencer posts lacked proper disclosure. In more than half the cases, disclosures were either missing or buried within hashtags. Fashion and lifestyle, telecom, and personal care were the top three sectors driving this trend.
LinkedIn, often perceived as a professional platform, was not spared. ASCI investigated 121 LinkedIn influencer posts that failed to disclose material connections, with many business professionals and consultants endorsing products without clarity or labels like 'ad' or 'partnership'. ASCI issued an advisory to LinkedIn users, warning that such failures could damage not just personal credibility but also the reputation of the companies they represent.
Greenwashing—false or exaggerated environmental claims—was another growing area of concern. ASCI flagged 211 such ads, all of which lacked proper substantiation. Brands across home care, fashion, and personal care sectors were found using terms like 'eco-friendly' or 'sustainable' without any credible proof. Almost 45% of these ads were uncontested and voluntarily withdrawn or modified, but 14% had to be escalated to regulatory authorities under guidelines meant to curb deceptive environmental claims.
ASCI also reported a significant increase in legally prohibited ads, escalating 3,347 advertisements to relevant government regulators. These included ads related to offshore betting, alcohol, unauthorised forex trading apps, and so-called 'magic remedies' in violation of existing laws. Despite the challenges, ASCI says it achieved quicker resolutions through improved internal processes and proactive engagement. It reported a 46% reduction in average complaint turnaround time—now down to 16 days—while 59% of complaints were resolved without contest. Most digital brands, which often lack large legal teams, chose to voluntarily modify or withdraw ads after being engaged by ASCI case officers.
The report also showed a notable 83.5% rise in complaints from the general public. ASCI processed 659 such cases, up from 359 last year, with a significant portion coming through social media tags. This reflects growing consumer awareness and trust in the self-regulatory mechanism. As more consumers engage with content online, ASCI’s findings reinforce the urgent need for digital accountability. Its focus going forward includes strengthening its monitoring unit, boosting compliance training through the ASCI Academy, and urging platforms, brands, and influencers to treat advertising responsibility as non-negotiable. The message is clear: in a digital-first world, ethical advertising is not optional—it is essential.
Frequently Asked Questions
What percentage of misleading ads were found online in FY24-25 according to ASCI?
94% of misleading ads were found online in FY24-25, according to the Advertising Standards Council of India (ASCI).
Which sector had the highest number of non-compliant ads?
Offshore betting platforms had the highest number of non-compliant ads, accounting for 3,081 violative ads, nearly doubling from the previous year.
How many influencers were found promoting offshore betting platforms?
A total of 318 influencers were found promoting offshore betting platforms, many without proper disclosure.
What is the main issue with influencer marketing as highlighted in the ASCI report?
The main issue with influencer marketing, as highlighted in the ASCI report, is the violation of disclosure guidelines. Out of 1,015 influencer ads examined, 98% violated these guidelines.
What steps is ASCI taking to address the rise in misleading ads?
ASCI is taking steps to address the rise in misleading ads by strengthening its monitoring unit, boosting compliance training through the ASCI Academy, and urging platforms, brands, and influencers to treat advertising responsibility as non-negotiable.
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