Central Consumer Protection Authority (CCPA) Advisory on Endorsing Illegal Betting

Central Consumer Protection Authority (CCPA) Advisory on Endorsing Illegal Betting

Subject: Polity

Section: Legislation in news

Advisory to Celebrities and Social Media Influencers:

• CCPA has asked celebrities and social media influencers to refrain from endorsing or promoting illegal betting and gambling activities.
• Stringent action will be taken against those found promoting such activities.

Concern Over Betting Platforms’ Use of Celebrities:

• The advisory notes that betting platforms are employing celebrities and influencers to endorse and promote betting activities.

Legal Implications for Promotion:

• Engaging in promoting or advertising online gambling and betting, being illegal in most states, makes one equally liable for participating in illegal activities.
• Celebrities and influencers are advised to refrain from endorsing and promoting illegal betting and gambling activities.

Past Advisories by Information & Broadcasting Ministry:

• The Information & Broadcasting Ministry has issued advisories in the past cautioning publishers and digital platforms against carrying ads promoting betting or gambling.

Prohibition of Betting and Gambling:

• Betting and gambling are prohibited under the Public Gaming Act 1867 and are considered illegal in most regions of India.
• Advertisement or promotion of online betting platforms and apps promotes an activity predominantly banned.

Persistence of Online Betting Platforms:

• Despite legal prohibitions, online betting platforms and apps continue to advertise betting and gambling, sometimes under the guise of gaming.

Financial and Socio-economic Implications:

• Endorsements of such activities have significant financial and socio-economic implications, especially for the youth.

Guidelines for Prevention of Misleading Advertisements:

• The CCPA mentions the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
• These guidelines categorically prohibit advertisements of products or services prohibited under any prevailing law.

Stringent Measures for Violations:

• Any violation of the guidelines will lead to stringent measures as per the Consumer Protection Act, 2019.
• Measures will be initiated against manufacturers, advertisers, publishers, intermediaries, social media platforms, endorsers, and other relevant stakeholders involved in promoting illegal betting and gambling.

Central Consumer Protection Authority (CCPA):

Establishment:

• Established in 2020 based on the provisions of the Consumer Protection Act, 2019.
• Nodal Ministry: The Ministry of Consumer Affairs.

Composition:

• The CCPA is headed by a Chief Commissioner.
• It consists of two other Commissioners as members:
  • One Commissioner deals with matters relating to goods.
  • The other Commissioner handles cases related to services.
• Additionally, the CCPA has an Investigation Wing headed by a Director General.

Powers and Responsibilities:

• Objective: The primary objective is to promote, protect, and enforce the rights of consumers as a class.
• Empowered:
  • Conduct Investigations: Into violations of consumer rights and institute complaints/prosecutions.
  • Order Recall: Of unsafe goods and services from the market.
  • Discontinue Unfair Practices: Such as misleading advertisements and unfair trade practices.
  • Impose Penalties: On manufacturers, endorsers, publishers, or entities involved in misleading advertisements.

District Collectors’ Powers:

• District Collectors also have the power to investigate complaints of:
  • Violations of consumer rights.
  • Unfair trade practices.
  • False or misleading advertisements.

Objective:

• The main objective of the CCPA is to promote, protect, and enforce the rights of consumers as a class.

Enforcement Actions:

• The CCPA is empowered to:
  • Conduct investigations into violations of consumer rights.
  • Institute complaints or prosecutions against offenders.
  • Order the recall of unsafe goods and services.
  • Discontinue unfair trade practices and misleading advertisements.
  • Impose penalties on manufacturers, endorsers, publishers, or entities involved in misleading advertisements.

Consumer Protection Focus:

• The primary focus of the CCPA is on ensuring consumer protection and upholding their rights.
• It aims to create a fair and transparent marketplace for consumers.

Regulatory Body:

• The CCPA acts as a regulatory body overseeing consumer protection laws and regulations.
• It plays a vital role in enforcing consumer rights and ensuring compliance by businesses.
• By enforcing consumer rights, ensuring market integrity, and fostering consumer awareness, the CCPA contributes significantly to a fair and transparent consumer environment in India.