Influencer marketing in India has emerged as a dynamic force in the digital economy, projected to grow 25% year on year by 2025, driven by over 900 million internet users and platforms like Instagram and YouTube. This sector capitalizes on influencers' parasocial relationships with followers, delivering engagement rates that surpass those of traditional advertising, particularly in fashion, beauty, wellness, and e-commerce. Brands increasingly allocate 65% of their budgets to influencer campaigns for superior ROI, with regional creators targeting Tier 2/3 cities to enhance market penetration. However, this rapid expansion harbours significant risks of consumer deception through hidden endorsements promotions in which paid partnerships are obscured by vague phrasing, buried hashtags, or omitted disclosures, masquerading as authentic recommendations.

Such practices violate core tenets of transparency, exploit consumer trust, and lead to widespread deception. Empirical data reveal 90% of Indian consumers have encountered fake or AI-generated endorsements, incurring average financial losses of ₹34,500, with younger demographics most vulnerable in health and finance niches. This erodes purchase intent, fosters brand scepticism, and threatens the long-term viability of the creator economy. India's regulatory response centres on the Consumer Protection Act, 2019 (CPA), which under Sections 2(28) and 21 defines misleading advertisements as those omitting material facts or creating false expectations, empowering the Central Consumer Protection Authority (CCPA) to impose fines up to ₹50 lakh and endorser bans of 1-3 years. Complementing this, the Advertising Standards Council of India (ASCI) enforces 2021 guidelines mandating upfront, prominent disclosures such as #ad or #sponsored for videos, stories, and AI avatars, with proactive monitoring yielding 80% takedown rates for violations.

Key enforcement actions underscore the framework's teeth: 2022 ASCI admonishments for undisclosed crypto/betting promotions; CCPA fines for skincare scams; Supreme Court rulings

affirming joint liability for unverified claims; and 2025 probes into fitness supplements and deep fakes. Despite these challenges, compliance gaps persist 70% compliance gaps, monitoring shortfalls for micro-influencers, rural digital divides, and AI-driven evasions outpacing manual oversight. Statistics highlight dissonance: market size escalating from ₹600 Cr (2020) to ₹3125 Cr (2025 proj.), while ASCI complaints surge from 1000 to 6500 annually.

This doctrinal-statistical analysis analysis dissects CPA-ASCI efficacy through statutes, cases, and trend data, posing questions on definition, trends, and reforms. Findings advocate AI-flagging algorithms, earnings-linked penalties, and mandatory certifications under DPDP Act 2023, consumer literacy campaigns, and contractual brand diligence to fortify protections without stifling innovation. Ultimately, evolving enforcement will safeguard consumers in this burgeoning ₹3125 Cr arena, balancing trust restoration with economic promise..