
What are the legal considerations for affiliate marketing in India?
1. Compliance with the Information Technology Act, 2000
- All affiliate marketing activities must comply with India’s IT Act
- Affiliates and brands must avoid publishing misleading or false information
- Cybersecurity measures should be in place to protect user data collected via affiliate links
- Hosting unlawful content or deceptive claims can result in legal penalties
- Responsibility lies with both the affiliate and the IT company if violations occur
2. Adherence to the Digital Personal Data Protection Act, 2023
- Explicit consent must be obtained before collecting or processing personal data through affiliate landing pages
- Clear privacy policies must be displayed where user data is collected (e.g., lead forms)
- IT firms and affiliates must offer opt-out options and secure data handling
- Data should not be shared without the user’s permission or for unrelated purposes
- Non-compliance may result in fines or platform-level bans
3. Disclosure Requirements by the ASCI (Advertising Standards Council of India)
- Affiliates must disclose paid partnerships using clear tags like #ad, #sponsored, or #affiliate
- Disclosures must be placed prominently and not hidden in captions or descriptions
- Applies to all content formats, including blogs, videos, and social media posts
- Ensures transparency and protects consumer rights under advertising laws
- Non-disclosure can lead to take-down notices or public reprimands
4. Avoidance of Spam and Misleading Practices
- Promotional emails and SMS sent by affiliates must follow anti-spam rules (as per TRAI and IT guidelines)
- Messages should include opt-out mechanisms and identify the sender clearly
- Misleading claims, clickbait titles, and fake reviews are legally risky
- Repeated violations may result in domain blacklisting or account bans
5. Clear Terms in Affiliate Agreements
- IT companies must provide a detailed affiliate contract covering:
- Commission structure and payment terms
- Content guidelines and usage rights
- Termination clauses and intellectual property use
- Legal jurisdiction (typically governed by Indian law)
- Restrictions on promoting competitors or unauthorized offers
- Commission structure and payment terms