Investing in influential people through advertising on social media is growing fast as a way to guide what Indians buy. Still, this marketing trend puts consumers at risk, mainly because companies often fail to list their ads, there is confusion between personal views and paid ads, and regulations are still lacking. When regulations do not match what they are intended to do in the influencer marketing environment, it is called a ‘growing regulatory gap.’ A combination of an online survey for 250 Indian social media users and a study of 30 influencer posts was used in this study to find out about consumer awareness, trust, and views on influencer-led marketing. It is evident from the results that influencer content significantly affects people’s choices, yet not many realize what should be disclosed or what is required by the ASCI. Furthermore, content analysis shows that disclosing ads under #ad and #sponsored is often inconsistent, mainly in the lifestyle, technology, and fashion areas. The research indicates that we must step up enforcement, incorporate disclosure tools into social media, and promote digital literacy. The study provides straightforward tips for influencer marketing that match consumer rights standards and help increase transparency and trust in the country’s online advertising industry.