REGULATING VIRTUAL INFLUENCERS IN INDIA: A LEGAL ANALYSIS OF AI-GENERATED PERSONALITIES UNDER CONSUMER AND MEDIA LAWS

The rapid evolution of digital marketing has driven the rise of virtual influencers AI-generated, computer-generated imagery (CGI) personalities that simulate human behaviours, styles, and interactions. In India, brands increasingly leverage these synthetic personas to engage consumers, presenting unique advantages in cost-efficiency and creative control. However, this shift complicates the regulatory landscape, as AI-generated personalities challenge traditional legal frameworks fundamentally built around human actors. This research paper addresses the core problem of legal accountability and consumer deception, investigating how virtual influencers frequently blur the line between authentic human endorsement and automated marketing. Employing a qualitative and doctrinal methodology, this study analyzes existing legal mechanisms, specifically focusing on the Consumer Protection Act (2019), the Central Consumer Protection Authority (CCPA) Guidelines for Prevention of Misleading Advertisements and Endorsements (2022), and the Advertising Standards Council of India (ASCI) code. The main findings indicate a critical enforcement gap: current laws mandate disclosure of commercial relationships but fail to adequately address the inherent synthetic nature of the endorser. This lack of explicit statutory categorization leaves consumers vulnerable to deceptive practices, particularly regarding "personal experience" claims for physical products by entities incapable of consuming them. Furthermore, ambiguity persists regarding liability allocation among the AI creators, marketing agencies, and platforms. To bridge these regulatory fissures, this paper suggests comprehensive legal reforms. It proposes rendering mandatory "AI-generated" watermarks and explicit disclosures on all promotional content, amending consumer laws to establish strict vicarious liability for creators, and creating specialized ASCI frameworks tailored to synthetic media. Ultimately, the study advocates for a balanced regulatory approach that safeguards consumer trust without stifling technological innovation in India’s expanding digital economy.