How should influencer payments be structured in India?

Influencer fees are typically paid as: (a) flat fee per deliverable, (b) milestone-based (advance + post-delivery), or (c) performance-based (CPM, CPA). TDS applies to influencer payments under Section 194J (Professional Services) at 10% if fees exceed ₹30,000/year. Brands must deduct and deposit TDS.

Can a brand reject influencer content?

Yes, if the contract includes a content approval clause. The brand typically has a review window (5–10 days) to approve or request revisions. The contract should specify: number of revision rounds allowed, what constitutes a reasonable rejection, and what happens if the brand and influencer cannot agree on content.

Marketing & Digital

Influencer Agreement India: Legal Guide, Clauses & ASCI Compliance

Q: Are influencer marketing contracts legally binding in India?

Yes. An influencer agreement is a legally binding contract under the Indian Contract Act 1872. It creates enforceable obligations on both the brand and the influencer — including deliverables, payment, content approval, and compliance with ASCI guidelines.

Q: What are ASCI disclosure rules for influencer marketing in India?

The Advertising Standards Council of India (ASCI) requires influencers to clearly disclose any paid collaboration using labels like #Ad, #Sponsored, #Collab, or 'Paid Partnership.' The label must be prominent — at the beginning of a caption, not buried. Virtual influencers must also disclose they are non-human. Non-disclosure can lead to ASCI complaints and brand/influencer penalties.

Q: Who owns the content created by an influencer in India?

By default under the Copyright Act 1957, the influencer (creator) owns their content. For the brand to reuse, repurpose, or run the content as ads, the contract must explicitly include a license or assignment of copyright to the brand. Brands often require a broad license for paid promotions on Meta and Google.

February 26, 2026•8 min read

Influencer Agreement India: Legal Guide, Clauses & ASCI Compliance

India is the world's third-largest influencer marketing market. Yet most brand-influencer deals are done on DMs, WhatsApp agreements, or one-page briefs. The result: brands don't get the content they paid for, influencers aren't paid on time, and no one's covering regulatory compliance. A proper influencer agreement fixes all three.

Why Influencer Contracts Matter in India

🚫 ASCI (Advertising Standards Council of India) compliance is mandatory — failure leads to brand complaints and CCPA action
💰 TDS must be deducted on influencer payments exceeding ₹30,000/year — brands face penalties for missing this
📸 Without a copyright license, brands cannot reuse influencer content as paid ads
⚡ Without exclusivity, influencers can promote competing brands the next day

ASCI Influencer Disclosure Rules

The Advertising Standards Council of India's influencer guidelines (updated 2021) are the primary regulatory framework:

Mandatory disclosure: All paid/gifted/barter content must be labeled. Accepted labels: #Ad, #Sponsored, #Collab, #Partnership, Paid Partnership
Position: Label must appear at the beginning of the caption — not buried after "See More"
Stories/Reels: Disclosure must appear on each frame/story separately — not just the first
Virtual influencers: Must disclose non-human nature in every post
CCPA enforcement: The Consumer Protection Authority can take action against brands and influencers for misleading undisclosed endorsements

12 Essential Clauses in an Influencer Agreement

1. Deliverables Specification

Exact deliverables: number of posts/stories/reels/YouTube videos, platform(s), minimum video duration, content format (static, video, carousel), posting schedule, and story swipe-up links or caption links required. Ambiguity here is the #1 source of influencer disputes.

2. Content Brief and Brand Guidelines

Key messages to convey, brand tone, products to feature, hashtags, mentions (@brand_handle), prohibited messaging (competitive mentions, certain claims), and language (Hindi/English/regional). Attach the brief as a schedule to the agreement.

3. Content Approval Process

Before posting, the influencer sends a draft for brand approval. Typical workflow: influencer submits → brand has 5 business days to approve/request revisions → influencer incorporates max 2 revision rounds → final approval → post within 48 hours. Specify what "reasonable rejection" means.

4. ASCI Compliance Obligation

Influencer warrants they will comply with ASCI Influencer Advertising Guidelines and all applicable regulations including MCA guidelines. Include: indemnity clause where influencer indemnifies brand for ASCI/CCPA penalties arising from influencer's non-disclosure.

5. Intellectual Property License

By default, influencer owns the content (Copyright Act 1957). For the brand to use content in paid ads, website, emails, and marketing materials, the contract must include: a royalty-free, perpetual (or time-limited), worldwide license to use, display, and distribute the content. Specify platforms and usage types.

6. Exclusivity

Without exclusivity, the influencer can post for a competitor the next day. Define: exclusive category (e.g., "beauty brands"), exclusive period (e.g., 30 days before and 30 days after posting), and geographic scope. Influencers typically charge a premium (2–3x) for exclusivity.

7. Payment Terms and TDS

State: total fee, payment schedule (50% advance, 50% post-posting), payment method. Include TDS: brands must deduct TDS at 10% under Section 194J if annual payments to the influencer exceed ₹30,000. Influencer receives net amount. Provide Form 16A for TDS deducted.

8. Performance Metrics (Optional)

If performance-linked payment is included: minimum view guarantee (if any), engagement rate floor, UTM tracking link requirement, screenshot delivery of analytics within 7 days of posting. Note: platforms' organic reach is unpredictable — avoid hard guarantees in contracts.

9. Morality/Reputation Clause

Brand can terminate if the influencer is involved in illegal activity, controversy, or conduct damaging to the brand's reputation. Define: what constitutes a reputational event (criminal charges, viral controversy), notice period for such termination, and payment terms on early termination.

10. Post Duration

State how long the content must remain live. Brands typically require a minimum of 6–12 months for static posts and 30 days for stories. Influencer cannot delete or archive without brand's written consent during this period.

11. Confidentiality

Influencer agrees not to disclose collaboration terms, fee, or brand strategy to other brands or publicly. This is routinely violated — explicit NDA language with damages estimate makes it more enforceable.

12. Governing Law and Dispute Resolution

For smaller deals: jurisdiction in brand's city courts. For larger deals: arbitration (1 arbitrator, fast-track). Always specify Indian governing law to avoid international jurisdictional complications.

Review Your Influencer Contracts.

ContractShield analyzes influencer agreements for missing ASCI compliance clauses, IP license gaps, exclusivity ambiguity, and TDS provisions in seconds.

Analyze Your Contract Free →

Frequently Asked Questions

Are influencer marketing contracts legally binding in India?

Yes. An influencer agreement is legally binding under the Indian Contract Act 1872, creating enforceable obligations on both brand and influencer including deliverables, payment, and regulatory compliance.

What are ASCI disclosure rules for influencer marketing in India?

ASCI requires influencers to clearly disclose paid collaborations using #Ad, #Sponsored, #Collab, or 'Paid Partnership' labels at the beginning of captions. Non-disclosure can lead to ASCI complaints and CCPA penalties.

Who owns the content created by an influencer in India?

By default, the influencer (creator) owns the content under the Copyright Act 1957. For brands to reuse content in paid ads or marketing, the contract must explicitly include a copyright license to the brand.