Parliamentary panel flags creator-driven fake news ecosystem, urges heavier fines and licensing norms

In a detailed report on mechanisms to curb fake news, the Parliamentary Standing Committee on Communications and Information Technology has placed the spotlight on fake news creators, underscoring the financial incentives, technological tools, and legal gaps that allow them to operate with impunity.

The Committee’s findings, presented in its Twenty-Second Report, highlight that creators of fake news — individuals, organized groups, and increasingly, AI content generators — are at the core of a sophisticated misinformation ecosystem that transcends national boundaries.

Stakeholders told the Committee that fake news creators often rely on sensational headlines and fabricated narratives to maximize clicks, gain followers, and drive advertising revenue. These monetary rewards serve as a major incentive for individuals and groups to continue producing misleading content.

In many cases, creators are not motivated solely by profit. The Committee observed that some groups deliberately manufacture misinformation to influence public opinion, damage political opponents, or advance specific ideological agendas. These activities are often sustained through donations, sponsorships, or organized financial backing, enabling creators to scale their operations and reach.

While regulatory frameworks currently focus heavily on distributors and platforms, the Committee made a strong case for stricter laws directly aimed at creators of fake news in India. It stressed that any legal framework must be carefully designed to balance regulation with the fundamental right to freedom of speech and expression under Article 19(1)(a) of the Constitution.

The Committee noted that existing penalties are not a sufficient deterrent. At present, penalties range from warnings to fines up to ₹25 lakh and potential license revocation. Stakeholders suggested a graded penalty system for repeat offenders — beginning with warnings and apologies, escalating to fines, suspensions, and, ultimately, complete blocking or removal of channels. The Committee endorsed the view that fines should be increased significantly to make them deterrent enough for creators and publishers of fake news.

Acknowledging the emerging role of AI in content creation, the Committee recommended exploring licensing requirements for AI content creators, especially those who generate and disseminate news or news-like material.

It further proposed that AI-generated videos and content be mandatorily labelled, to make audiences aware of the source and nature of the information they consume. This move is aimed squarely at creators using deepfakes and AI-manipulated media to mislead the public and amplify false narratives at scale.

The report underlines that creators benefit from algorithmic amplification on major social media platforms. Sensational or false content is often prioritized by algorithms that promote high-engagement material, giving creators disproportionate reach.

Technological tools such as bots, deepfake generators, and cognitive manipulation techniques further extend the impact of creators, allowing relatively small groups to produce content with massive, rapid circulation.

To tackle these challenges, the Committee urged the Ministry of Information and Broadcasting to coordinate with the Ministry of Electronics and Information Technology (MeitY) and other stakeholders to develop a comprehensive accountability framework for creators.

This includes:

Working with Big Tech platforms to address issues related to individual content creators and influencers.

Examining intermediary “safe harbour” provisions and their impact on regulating creators.

Requiring Big Tech companies to appoint dedicated nodal officers in India to assist in action against repeated creator-led violations.

While legal and regulatory measures are crucial, the Committee also emphasized the need to strengthen digital literacy among the public, enabling citizens to identify and reject fake content created for manipulation. It noted that enforcement against creators must be accompanied by public awareness to reduce the overall volume of misinformation.

With the rise of AI-driven content creation and the persistence of financially and politically motivated creators, the Committee’s recommendations signal a shift towards targeting the source of misinformation rather than focusing solely on platforms. If implemented, the proposed measures — including tougher penalties, licensing norms, and mandatory labelling — could reshape the legal landscape for digital content creation in India.

Read More: Parliamentary panel backs adopting French model to combat cross-border fake news

Read More: Parliamentary panel flags fake news as ‘serious threat’; calls for stricter penalties, fact-checks across media