A CRITICAL STUDY OF COMPETITION LAW IN REGULATING ANTI- COMPETITIVE PRACTICES: THE EVOLVING LANDSCAPE OF INFLUENCER MARKETING

In recent years, influencer marketing has emerged as a powerful tool for promoting products
and services, particularly in industries such as beauty and wellness. However, the rapid rise
of this marketing strategy has brought new challenges in regulating false advertising and
anti-competitive practices. This study critically examines the role of competition law and the
Consumer Protection Act, 2019, in addressing anti-competitive practices within the context of
influencer marketing. The study explores the intersection of competition law, which aims to
prevent market distortions, and consumer protection laws, which safeguard consumers from
deceptive practices such as false advertising by influencers.
Influencers, often acting as intermediaries between brands and consumers, have a significant
impact on consumer decisions. While their endorsements can drive consumer behaviour,
there is an increasing risk of misleading or false claims, which can distort competition by
promoting certain brands unfairly or manipulating consumer perceptions. The Consumer
Protection Act, 2019, addresses these concerns by holding influencers accountable for
misleading advertisements and imposing penalties on both brands and endorsers. This study
examines how the Act functions alongside competition law to prevent market dominance and
price manipulation, thus ensuring a level playing field for all market participants.
By analysing specific case studies and enforcement mechanisms, this study aims to assess the
effectiveness of the current legal framework in regulating influencer marketing. It also
explores potential gaps in enforcement, particularly in the context of the rapidly evolving
digital market. The study concludes by proposing recommendations for strengthening
regulatory oversight to protect consumers and promote fair competition in influencer
marketing, while ensuring that both laws work in synergy to address emerging challenges.
Keywords: Competition law, Consumer Protection Act 2019, influencer marketing, anti-
competitive practices, false advertising, beauty and wellness industry, digital marketing