Government tightens measures to combat fake news, misleading ads, and online fraud

The Government of India has intensified its efforts to ensure a safer and more accountable digital ecosystem by introducing key regulatory measures targeting fake news, misleading advertisements, and online fraud.

These steps aim to protect users from the rising tide of cyber deception and enhance consumer trust in online platforms.

The Ministry of Electronics and Information Technology (MeitY) has implemented the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021).

These rules impose stringent due diligence obligations on digital intermediaries, requiring them to avoid hosting or sharing content that violates Indian laws. Platforms failing to comply risk losing their immunity under Section 79 of the Information Technology Act, 2000, which shields them from liability for third-party content.

The Central Consumer Protection Authority (CCPA) has issued a comprehensive advisory addressing misleading advertisements, particularly those promoting illegal activities.

Under the Consumer Protection Act, 2019, the CCPA explicitly prohibits endorsing or advertising unlawful services, strengthening consumer rights against deceptive trade practices.

The Ministry of Information and Broadcasting (MIB) has urged media outlets and social platforms to refrain from airing surrogate advertisements for online betting platforms. This advisory, issued in March 2024, also warns online advertisers against targeting Indian audiences with such content.

Multiple mechanisms have been established to address grievances related to cyber fraud and unfair trade practices:

Under the IT Rules, 2021, intermediaries must appoint Grievance Officers to handle complaints. If victims find the intermediary's response inadequate, they can escalate their case to the Grievance Appellate Committee, which ensures a time-bound resolution.

The Consumer Protection Act, 2019, enables consumers to seek redressal through a three-tier system of commissions—district, state, and national levels. These forums address disputed efficiently, including those stemming from unfair trade practices in e-commerce.

The CCPA has introduced guidelines to regulate "dark patterns" in e-commerce, a term referring to deceptive design tactics that manipulate consumer choices. These guidelines, issued in November 2023, identify 12 specific practices to protect consumers from exploitative digital behaviour.

The Ministry of Home Affairs (MHA) has set up the Indian Cyber Crime Coordination Centre (I4C) to create a coordinated framework for combating cybercrime.

The National Cyber Crime Reporting Portal (cybercrime.gov.in) allows citizens to report incidents, which are directed to the respective State or Union Territory law enforcement agencies for further action.

The government has also introduced the Consumer Protection (e-commerce) Rules, 2020, delineating the responsibilities of e-commerce platforms.

These rules mandate customer grievance redressal mechanisms and hold marketplaces accountable for unfair practices, ensuring transparency in digital transactions.