India’s health and wellness market touched USD 156 billion in 2024 and is expected to reach a whopping USD 256.9 billion by 2033, growing at a CAGR of 5.3%. The wellness industry spans five key segments – beauty and personal care, fitness, nutrition, alternative therapies, and rejuvenation – covering everything from beauty products, wellness foods, and dietary supplements to Ayurvedic centres and spas. 

Within the wellness industry, the beauty and cosmetics vertical, encompassing skincare, haircare, colour cosmetics, and personal care products, has emerged as one of the fastest-growing segments and is projected to reach a market size of USD 20 billion by 2025. The expansion is propelled by rising disposable incomes, increasing consumer preference for specialised beauty products, and the integration of routine personal care into the everyday lifestyle of a large section of the urban population.

The rapid growth of the industry has given rise to multiple legal issues, ranging from the sale of spurious and sub-standard products to data protection concerns. However, in recent times, the marketing and advertising of such products has become the foremost legal issue for businesses, owing to heightened scrutiny from both courts and self-regulatory bodies such as the Advertising Standards Council of India (“ASCI”).

This article provides an overview of the legal framework that governs the advertising and marketing of beauty products, highlights key considerations for businesses when engaging influencers, discusses recent enforcement trends, and provides practical strategies to minimise legal risks.

Regulatory Framework

The classification of beauty products under Indian law depends on their intended use. The majority of beauty products, such as facial creams, moisturisers, lotions, shampoos, conditioners, lipsticks and sunscreens are regulated as “cosmetics” under India’s Drugs and Cosmetics Act, 1940, as they are intended for cleansing, beautifying, or enhancing an individual’s appearance. Certain types of products, like antiseptic creams, anti-dandruff shampoos, and medicated lip balms, could further be regulated as “drugs” under this law, as they are intended for the treatment, mitigation, or prevention of a disease.

Businesses that market and advertise such drugs must comply with the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. This law prohibits advertisements for drugs that claim to cure, treat, mitigate, or prevent certain diseases. While advertisements for drugs addressing common skin conditions such as acne are generally permitted, those making claims to cure serious diseases, such as leucoderma (vitiligo) and skin cancer, are prohibited.

In parallel, businesses must also comply with India’s general advertising laws, such as the Consumer Protection Act, 2019 and the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, irrespective of whether their product is classified as a cosmetic or a drug. These laws require entities to ensure that all advertisements published by them, regardless of their form, format, or medium, present an accurate depiction of the product. 

Further, companies that are members of ASCI must also comply with the ASCI Code for Self-Regulation in Advertising. The code reinforces the requirements under consumer protection laws and mandates that advertisements be truthful and supported by verified claims. Businesses must also ensure that advertisements for beauty products promote inclusivity and do not suggest that lighter skin is more desirable than darker skin – a common marketing theme across South Asia.

Influencer Marketing

Influencer marketing has become an indispensable part of the marketing and advertising strategies of most businesses in India, as reflected in the surge of influencers from 0.96 million in 2022 to over 4.6 million in 2025. Beauty companies, in particular, have embraced this trend, actively collaborating with influencers to enhance brand visibility and bolster consumer trust.

To mitigate liability risks, companies engaging influencers should contractually require them to comply with the Wellness Influencer Guidelines issued by the Department of Consumer Affairs. Under these guidelines, health and wellness influencers must disclose their credentials and clearly state that their content is not a substitute for professional medical advice. Influencers are encouraged to conduct due diligence, substantiate any health-related claims with credible evidence, and, where feasible, use or experience the product themselves. Further, businesses should carefully structure influencer agreements to ensure they retain the right to review, modify, or reject any content created by the influencer at their sole discretion.

Recent Enforcement Trends

In recent years, scrutiny of misleading beauty and wellness advertisements has intensified, with both self-regulatory and statutory bodies stepping up enforcement. The ASCI has initiated action against several companies for publishing false or unsubstantiated claims, particularly in relation to Ayurvedic and personal care products. At the same time, consumer redressal commissions have also imposed fines on entities for engaging in deceptive marketing practices. The table below highlights some notable recent cases

Recommendations for Businesses

With increasing regulatory scrutiny and growing consumer awareness, it is essential that marketing practices not only comply with these laws but also foster transparency, credibility, and trust. The recommendations set out below are intended to guide businesses in promoting beauty products effectively, while aligning with regulatory expectations and industry best practices.

1. Evidence to Substantiate Claims: Product claims should be supported by verifiable evidence, such as lab reports, clinical studies, third-party certifications, or well-documented consumer surveys. Businesses must avoid using absolute or exaggerated terms such as “permanent”, “guaranteed” or “100% effective”, unless substantiated by credible proof.
2. True and Accurate Information on Price, Offers, Gifts and Discounts: Businesses should clearly disclose all applicable terms and conditions on discounts, offers, and gifts associated with a beauty product, such as eligibility criteria (for instance, “valid on purchases above INR 999”) or time limits (for instance, “first 100 customers only”).
3. QR Codes and Dashboards: Product labels often contain technical details that customers may find challenging to understand. To ensure that product information is made available to customers in a clear and reader-friendly manner, businesses should collaborate with recognised third-party platforms to create QR codes or dashboards that present details about the product, such as features, components, quality test results, and other relevant information.
4. Disclaimers: Businesses should include clear and prominent disclaimers next to product claims involving exceptions or limitations such as “results may vary” or “available only while stocks last.” These disclaimers should be clearly legible across all screen sizes and devices.
5. Coordination and Training: Marketing teams should coordinate with product development teams to ensure that all marketing claims and product labels are factually correct. Organisations should also conduct periodic training sessions for internal teams to ensure compliance.

Conclusion

The rapid expansion of the beauty industry in India has brought with it heightened regulatory scrutiny and evolving compliance obligations. To build sustainable consumer trust and mitigate liability risks, businesses must focus on transparent, evidence-based marketing, and accurate product communication. The table below sets out key do’s and don’ts for businesses when advertising and marketing beauty products.