Lok Sabha Question No. 2975 (UNSTARRED), answered on 2023-12-20
Subject: Report of Advertising Standards Council of India
Ministry: COMMERCE AND INDUSTRY
Asked by: Manne Srinivas Reddy, Y. S. Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 2975.

TO BE ANSWERED ON WEDNESDAY, THE 20 TH  DECEMBER, 2023.

## REPORT OF ADVERTISING STANDARDS COUNCIL OF INDIA

## 2975. SHRI MANNE SRINIVAS REDDY: SHRI Y.S. AVINASH REDDY :

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether it is a fact that an Advertising Standards Council of India report in 2021 estimated that over 50 per cent of e-commerce sites used dark patterns to sell their  products  and  amassed  profits  that  are  often  larger  than  the  Gross Domestic Product (GDP) of several nations combined and country's efforts so far  to  regulate  the  sector  have  been  confined  to  preventing  tax  leakages, protecting the interests of brick, mortar merchants and the newfound focus on consumers;
- (b) if so, the facts thereof;
- (c) whether there is a need to safeguard privacy in relation to personal data on ecommerce sites and social media platforms, so as to boost user confidence and ensure a safe, secure, free and fair digital environment; and
- (d) if  so,  the  details  thereof  along  with  the  present  status  in  this  regard  and corrective steps being taken and the results yielded as on date?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b):

Dark patterns involve using design and choice architecture to deceive, coerce, or influence consumers into making choices that are not in their best  interest.  Dark patterns encompass a wide range of manipulative practices  such as drip pricing,  disguised  advertisement,  bait  and switch, false urgency etc.

Such  practices  fall  under  the  category  of  "unfair  trade  practices"  as defined  under  the  Consumer Protection Act, 2019. The  Central Consumer Protection Authority, in exercise of the powers conferred by Section 18  of  the  Consumer  Protection  Act,  2019,  has  issued 'Guidelines  for  Prevention  and  Regulation  of  Dark  Patterns,  2023' on 30th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark patterns.

|            | To safeguard consumers from unfair trade practices in e-commerce, the Department of Consumer Affairs has also notified the Consumer Protection (E-commerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019. These rules inter-alia outline the responsibilities of e-commerce entities and specify the liabilities of marketplace and inventory e-commerce entities, including provisions for customer grievance redressal.                                                                                                                                   |
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| (c) & (d): | There is need to safeguard protection of personal data on e- Commerce sites and social Media Platforms including other types of data fiduciaries. Towards this cause, the Digital Personal Data Protection Act (DPDP Act 2023) has been enacted on11th August 2023. This Act provides for the processing of digital personal data in a manner that recognizes both the rights of the individuals to protect their personal data and for the data fiduciaries the need to process such personal data for lawful purposes.                                                             |
|            | The Act also puts the obligation on Data Fiduciary to protect personal data in its possession or under its control by taking reasonable security safeguards to prevent personal data breach. Further, in case of any such breach, the data fiduciary has to intimate the Data Protection Board and the concerned data principal. Also, if the Board determines on conclusion of an inquiry that any breach by such data fiduciary is significant as per the provisions of the Act, Board may, after giving the Data fiduciary an opportunity to be heard, impose a monetary penalty. |

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