Influencer-driven shopping opens backdoor to your payment data, says IIGC report
Adding to these concerns is the rise of AI influencers; these are digital avatars that appear human but are entirely machine-generated. While they represent a futuristic marketing tool, they come with their own set of ethical dilemmas.
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Influencers, brands, and social media platforms collect and use consumer data for marketing, advertising, and behavioral tracking. While data-driven content can enhance user experiences, it also raises concerns about privacy, security, and ethical data use, as per a report by the Indian Influencer Governing Council (IIGC) titled Code of Standards for Consumers.
What many consumers may not realize is just how much data they share simply by engaging with influencer content. From likes to discount codes, the digital footprint left behind feeds a vast ecosystem of data tracking.
Social Media Engagement
• Liking, commenting, sharing, and following an influencer provides data on consumer interests and behavior. • Algorithms track engagement to deliver targeted ads and personalized content.
Clicking on Affiliate Links & Discount Codes
• Influencers use trackable links and discount codes that collect data on consumer purchases. • This data is often shared with brands, advertisers, and third-party marketers.
But the data trail doesn’t stop there. Seemingly harmless activities like signing up for giveaways or buying products through social media platforms come with additional privacy trade-offs.
Contests & Giveaways
• Often require users to submit personal information such as phone numbers or email IDs. • This data can be used for lead generation, remarketing, or even sold to third-party databases.
Using E-Commerce & Shopping Features on Social Media
Platforms collect purchase history, preferences, and payment details when consumers buy directly through influencer-recommended links.
This data is sometimes shared with advertisers to build more aggressive and precise ad targeting systems.
The Risks of Unchecked Data Collection
The IIGC report warns that without clear guidelines and transparency, this unchecked data collection poses serious risks to consumers, including:
Targeted Manipulation: Hyper-personalized ads that pressure users into impulsive or unnecessary purchases.
Cyber Threats: Sensitive personal information, if breached, can expose users to fraud.
Unethical Selling of Data: Many companies still sell user data to data brokers without explicit permission.
Identity Theft: In the wrong hands, even basic details can lead to fraudulent activity..
Adding to these concerns is the rise of AI influencers — digital avatars that appear human but are entirely machine-generated. While they represent a futuristic marketing tool, they come with their own set of ethical dilemmas.
Ethical Concerns with AI Influencers
While AI influencers bring innovation to digital marketing, they also pose serious ethical concerns, including:
Lack of Real-Life Experience
• AI influencers do not use, test, or experience the products they promote. • Any endorsement made by an AI influencer is purely scripted marketing, not based on real opinions.
Manipulation & Deceptive Marketing
• AI influencers can be programmed to make exaggerated claims about products.
• There is a risk of AI-generated content misleading consumers into thinking recommendations are based on real experiences.
No Accountability
• Human influencers can be held accountable for false claims, but AI influencers do not have personal responsibility.
• If an AI influencer promotes a harmful or misleading product, who is responsible, the brand, the AI developers, or the platform?
Lack of Transparency
Some AI influencers are not clearly labeled as artificial, making it difficult for consumers to know whether they are interacting with a real person or a digital creation.
• Consumers may trust AI influencers without realizing their endorsements are entirely scripted and commercialized.
To help consumers avoid being misled, the IIGC offers a few pointers on how to spot AI influencers in the wild.
• Check for Disclosure: Ethical AI influencers should be clearly labeled as artificial. Look for hashtags such as #AIInfluencer or #VirtualInfluencer.
• Look for Signs of CGI (Computer-Generated Imagery): AI influencers often have flawless, highly edited, or unnatural facial features.
• Analyze Engagement Patterns: AI influencers may have scripted replies, lack personal storytelling, or avoid real-life experiences in their content.
• Research Their Background: If an influencer has no verifiable human history, they may be AI-generated.
