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The rapid innovation of technology and its resultant proliferation in India has integrated businesses that market technology-based products with commerce. Consumer habits have now shifted from traditional to technology-based products, with many consumers opting for smart devices, online transactions and online services. This migration has increased potential data breaches, product defects, misleading advertisements and unfair trade practices. 

The need to regulate technology-based commercial industry is seen in the backdrop of various threats that technologies pose, particularly to data. Most devices track consumer behaviour without the authorisation of the consumer. Additionally, products are often defunct or complex to use and the configuration process may prove to be lengthy with a vague warranty. 

It is noted that consumers also face difficulties in the technology service sector, even while attempting to purchase a product. These include vendor lock-ins (whereby a consumer finds it difficult to migrate from one vendor to another), dark patterns (deceptive strategies and design practices that mislead users and violate consumer rights), ethical concerns etc. 

Against this backdrop, consumer laws are now playing catch up to adequately cater to new consumer rights that come with technology. Consumer laws now have to evolve to become complimentary with other laws and legislation that govern and safeguard individual rights. This includes emphasising compliance with data privacy regulations, creating rules for ancillary activities such as advertising standards and setting guidelines for both product and product seller/manufacturer. 

The Legal Framework in India

Currently, Consumer Laws in India while not tech-targeted, are somewhat adequate; The Consumer Protection Act 2019 (“Act”) protects the rights of consumers in India. It places liability on manufacturers, sellers and service providers for any harm caused to a consumer by faulty/defective products. As a result, manufacturers and sellers of ‘Internet & technology-based products’ are brought under the ambit of this Act. The Consumer Protection Act 2019 may also be viewed in light of the Digital Personal Data Protection Act 2023, which mandates the security of the digital personal data of an individual. Envisioned provisions such as those pertaining to mandatory consent, purpose limitation, data minimization, mandatory security measures by organisations, data localisation, accountability and compliance by the DPDP Act can be applied to information generated by and for consumers.

Multiple regulatory authorities and departments have also tasked themselves to issue guidelines that imbibe the principle of caveat venditor. To this effect, the Networks & Technologies (NT) wing of the Department of Telecommunications (DoT) on 2 March 2023, issued the Advisory Guidelines to M2M/IoT stakeholders for securing consumer IoT (“Guidelines”) aiming for M2M/IoT (i.e. Machine to Machine/Internet of things) compliance with the safety and security standards and guidelines in order to protect the users and the networks that connect these devices. The comprehensive Guidelines suggest the removal of universal default passwords and usernames such as “admin” that come preprogrammed with new devices and mandate the password reset process to be done after user authentication. Web services associated with the product are required to use Multi-Factor Authentication and duty is cast on them to not expose any unnecessary user information prior to authentication. Further, M2M/IoT stakeholders are required to provide a public point of contact for reporting vulnerability and security issues. Such stakeholders must also ensure that the software components are updateable in a secure and timely manner. An end-of-life policy is to be published for end-point devices which states the assured duration for which a device will receive software updates.

The involvement of regulatory authorities depends on the nature of technology products; a single product or technical consumer threat may see multiple guidelines. The Advertising Standards Council of India (ASCI) notes that cryptocurrency and related products were considered as the most violative category to commit fraud. In an attempt to protect consumer safety, it introduced guidelines to regulate advertising and promotion of virtual digital assets (VDA) exchange and trading platforms and associated services as a necessary interim measure in February 2022. It mandates that all VDA ads must carry the stipulated disclaimer “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” must be made in a prominent and unmissable manner.

Further, authorities such as Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) also issue cautionary notes to consumers and investors against crypto trading and ancillary activities. Even bodies like Bureau of Indian Standards (BIS) act as a complimenting authority, since product quality, including electronic products, is emphasised by mandating compliance to prescribed standards. 

It is worth noting that ASCI has proactively responded to new-age technology-induced threats to consumers by attempting to tackle “dark patterns” through its existing Code on Misleading Ads (“Code”), since it is applicable across media to include online advertising on websites and social media handles. It was noted by ASCI that 29% of advertisements were disguised ads by influencers, which is a form of dark pattern. Although the existing Code addressed some issues, a need was felt to encompass other dark patterns.

Perhaps in response, the Central Consumer Protection Authority in November 2023 released guidelines addressing “dark patterns” under the Consumer Protection Act 2019 (“Guidelines”). The Guidelines define dark patterns as deceptive strategies and design practices that mislead users and violate consumer rights. These may include creating false urgency, scarcity or popularity of a product, basket sneaking (whereby additional services are added automatically on purchase of a product or service), confirm shaming (it refers to statements such as “I will stay unsecured” when opting out of travel insurance on booking of transportation tickets), etc. The Guidelines also cater to several data privacy considerations; for example, they stipulate a bar on encouraging consumers from divulging more personal information while making purchases due to difficult language and complex settings of their privacy policies, thereby ensuring compliance of technology product sellers and e-commerce platforms/vendors with data privacy laws in India. It is to be noted that the Guidelines are applicable on all platforms that systematically offer goods and services in India, advertisers and sellers.

Conclusion

Consumer laws for technology-based products in India play a pivotal role in safeguarding the rights and interests of individuals in an era marked by rapid technological advancements. These legislative frameworks, spanning facets such as data protection, electronic transactions, and product liability, assume a pivotal role in establishing a regulatory equilibrium that addresses the nuanced challenges of the digital age. The dynamic evolution of the digital landscape necessitates an adaptive legal infrastructure that ensures ongoing consumer safeguarding amidst technological innovations. As the digital landscape evolves, it is imperative for regulatory frameworks to adapt, ensuring that consumers are protected from potential risks associated with emerging technologies. Striking a balance between innovation and consumer safety requires ongoing collaboration between policymakers, businesses, and consumers. By staying attuned to the evolving needs of the digital age, Indian consumer laws can provide a robust foundation for security and equitable relationships between consumers and technology-based products.

References:

• https://dot.gov.in/circulars/advisory-guidelines-m2miot-stakeholders-securing-consumer-iot
• https://www.mondaq.com/india/advertising-marketing--branding/1169236/asci-releases-guidelines-to-govern-ads-for-cryptocurrency
• https://www.ascionline.in/the-asci-code/#:~:text=Chapter%20I%20(4)%20of%20the,nor%20deceived%20by%20means%20of
• https://www.ascionline.in/wp-content/uploads/2022/11/dark-patterns.pdf

Introduction

Ministry of Electronics and Information Technology (MeitY) Announces to Centre Government to Plan to Certify Permissible Online Games.

In a recent update to the notification released by the Ministry of Electronics and Information Technology (MeitY) on April 6, MeitY has requested gaming entities to establish self-regulatory organisations (SROs) within a timeframe of 30 days or a maximum of 90 days from the date of the notification, which is April 6, 2023. The Ministry of Electronics and Information Technology (MeitY) has further announced that the central government will certify which online games are permissible until the SROs are officially established. The intention behind establishing SROs is to assist intermediaries, such as Apple or Google, in determining what constitutes a permitted online game, but the SRO will take 2-3 months to complete. In the meanwhile, the Central government will step in and determine what is a permissible online game.

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 & Intermediary Guidelines and Digital Media Ethics Code Amendment Rules, 2023

By enacting these rules, the Indian government has taken decisive action to protect Indian gamers and their financial resources against scams and fraud. The rules also serve to promote responsible gaming while preventing young and vulnerable users from being exposed to indecent or abusive content.

Amendment Rules developed the concept of a “Permissible online real money game.” This designation is reserved for games that have passed a review process conducted by a self-regulatory body (SRB).  Amendment rules indicate that Online Gaming Intermediaries must ensure that they do not permit any third party to host non-permissible online real money games on their platforms. This development is important because it empowers us to distinguish between legitimate and illicit real money games.

The Amendment Rules define an online gaming provider as an “intermediary” under the Information Technology Act of 2000, creating a separate classification called ‘Online Gaming Intermediary’.

Central government to certify what is an ‘Online Permissible Game’

The industry has been wondering what games come under wagering and will be banned. So, until the SROs are officially established, the government, in the interim, will certify what is a permissible game, what is wagering, and what is not wagering. Games that involve elements of wagering are going to be barred. The new regulations prohibit wagering on any outcome, whether in skill-based or chance-based games. Hence gaming applications involving wagering and betting apps will be barred.

Self-Regulatory Organizations (SROs)

According to the new regulations by the Ministry of Electronics and Information Technology (MeitY), online gaming intermediaries must establish a Self-Regulatory Body (SRO) to approve games offered to users over the Internet. The SRO must be registered with the Ministry and develop a framework to ensure compliance with the IT Rules 2021 objectives. An ‘online game’ can be registered by the SRO if it meets specific criteria, which include that the game is offered by an online gaming intermediary that is a member of the self-regulatory body, the game is not containing any content harmful to India’s interests, and complying with all relevant Indian regulations. If these requirements are met, the intermediary can display a visible registration mark indicating its registration with the self-regulatory authority.

Conclusion

MeitY found that with the rapid growth of the gaming industry, the real money gaming (RMG) sector had to be regulated properly. Rules framed must be properly implemented to stop gambling, betting, and wagering apps.

The IT Rules 2021, along with the Amendment Rules 2023, are created to take concrete action to curb the proliferation of gambling, betting, and wagering apps in India. These rules empower to issue of directives to ban specific apps that facilitate or promote such activities. The app ban directive allows the government to take decisive action by blocking access to these apps, making them unavailable for download or use within the country. This measure is aimed at curbing the negative impact of gambling, betting, and wagering on individuals and society, including issues related to addiction, financial loss, and illegal activities. Rules aim to actively combat the spread and influence of such apps and provide a safer online environment for gaming users.

The self-regulatory body in the context of online gaming will have the authority to grant membership to gaming intermediaries, register online games, develop a framework for regulation, interact with the Central Government, address user complaints, report instances of non-compliance, and take necessary actions to safeguard online gaming users.

What is Deepfake

Deepfakes have been, a fascinating but unsettling phenomenon that is now prominent in this digital age. These incredibly convincing films have drawn attention and blended in well with our high-tech surroundings. The lifelike but completely manufactured quality of deepfake videos has become an essential component of our digital environment as we traverse the broad reaches of our digital society. While these works have an undoubtedly captivating charm, they have important ramifications. Come along as we examine the deep effects that misuse of deepfakes can have on our globalized digital culture. After many actors now business tycoon Ratan Tata has become the latest victim of deepfake. Tata called out a post from a user that used a fake interview of him in a video recommending Investments.

Case Study

The nuisance of deep fake is sparing none from actors politicians to entrepreneurs everyone is getting caught in the Trap. Soon after the actresses Rashmika Mandana, Katrina Kaif, Kajol and other actresses fell prey to the rising scenario of deepfake, a new case from the industry emerged, which took Mr. Ratan Tata on storm. Business tycoon Ratan Tata has become the latest victim of deepfake. He took to his social media sharing an image of the interview that asked people to invest money in a project in a post on Instagram. Ratan Tata called out a post from a user that used a fake interview of him in a video recommending these Investments. 

This nuisance that has been created because of the deepfake is sparing nobody from actors to politicians to entrepreneurs now everyone is getting caught in the trap the latest victim being Ratan Tata. Tech magnate Ratan Tata is the most recent victim of this deepfake phenomenon. The millionaire was seen in the video, which was posted by the Instagram user, giving his followers a once-in-a-million opportunity to "exaggerate investments risk-free."

In the stated video, Ratan Tata was seen giving everyone in India advice mentioning to the public regarding the opportunity to increase their money with no risk and a 100% guarantee. The caption of the video clip stated, "Go to the channel right now."

Tata annotated both the video and the screenshot of the caption with the word "FAKE."

Ongoing Deepfake Assaults in India

Deepfake videos continue to target celebrities, and Priyanka Chopra is also a recent victim of this unsettling trend. Priyanka's deepfake adopts a different strategy than other examples, including actresses like Rashmika Mandanna, Katrina Kaif, Kajol, and Alia Bhatt. Rather than editing her face in contentious situations, the misleading film keeps her looking the same but modifies her voice and replaces real interview quotes with made-up commercial phrases. The deceptive video shows Priyanka promoting a product and talking about her yearly salary, highlighting the worrying development of deepfake technology and its possible effects on prominent personalities.

Prevention and Detection

In order to effectively combat the growing threat posed by deepfake technology, people and institutions should place a high priority on developing critical thinking abilities, carefully examining visual and auditory cues for discrepancies, making use of tools like reverse image searches, keeping up with the latest developments in deepfake trends, and rigorously fact-check reputable media sources. Important actions to improve resistance against deepfake threats include putting in place strong security policies, integrating cutting-edge deepfake detection technologies, supporting the development of ethical AI, and encouraging candid communication and cooperation. We can all work together to effectively and mindfully manage the problems presented by deepfake technology by combining these tactics and making adjustments to the constantly changing terrain.

Conclusion

The current instance involving Ratan Tata serves as an example of how the emergence of counterfeit technology poses an imminent danger to our digital civilization. The fake video, which was posted to Instagram, showed the business tycoon giving financial advice and luring followers with low-risk investment options. Tata quickly called out the footage as "FAKE," highlighting the need for careful media consumption. The Tata incident serves as a reminder of the possible damage deepfakes can do to prominent people's reputations. The issue, in Ratan Tata's instance specifically, demands that public personalities be more mindful of the possible misuse of their virtual identities. We can all work together to strengthen our defenses against this sneaky phenomenon and maintain the trustworthiness of our internet-based culture in the face of ever-changing technological challenges by emphasizing preventive measures like strict safety regulations and the implementation of state-of-the-art deepfake detection technologies.

References

• https://economictimes.indiatimes.com/magazines/panache/ratan-tata-slams-deepfake-video-that-features-him-giving-risk-free-investment-advice/articleshow/105805223.cms
• https://www.ndtv.com/india-news/ratan-tata-flags-deepfake-video-of-his-interview-recommending-investments-4640515
• https://www.businesstoday.in/bt-tv/short-video/viralvideo-business-tycoon-ratan-tata-falls-victim-to-deepfake-408557-2023-12-07
• https://www.livemint.com/news/india/false-ratan-tata-calls-out-a-deepfake-video-of-him-giving-investment-advice-11701926766285.html