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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

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