Lok Sabha Question No. 258 (UNSTARRED), answered on 2024-11-27
Subject: Grievance Redressal Mechanism for Cyber Fraud
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Smt. Roopkumari Choudhary

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 258

TO BE ANSWERED ON: 27.11.2024

## GRIEVANCE REDRESSAL MECHANISM FOR CYBER FRAUD

## †258.   SMT. ROOPKUMARI CHOUDHARY:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) the  initiatives  taken  by  the  Government  to  prevent  fraud  involving  fake reviews, misleading advertisements and fake products on online platforms; and
- (b) whether the grievance redressal mechanism is addressing all grievances related to cyber fraud and online fraud?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) and (b):  The policies of Government of India are aimed at ensuring an open, safe, trusted and accountable internet for users in the country. The key initiatives taken by Government of India to prevent fraud involving fake news, misleading advertisements and fake products on online platforms are as under:

1. Ministry of Electronics and Information Technology ('MeitY') in exercise of powers conferred  by  the  Information  Technology  Act,  2000  ('IT  Act'),  has  notified  the Information  Technology  (Intermediary  Guidelines  and  Digital  Media  Ethics  Code) Rules, 2021 ('IT Rules, 2021'). IT Rules, 2021 cast specific due diligence obligations on  intermediaries  with  respect  to  the  information  that  is  not  to  be  hosted,  displayed, uploaded, published, transmitted, stored or shared on the platforms. Intermediaries are required not to host, store or publish any information violative of any law for the time being in force. In case of failure to observe due diligence as provided in the IT Rules, 2021, intermediaries lose the exemption from liability for any third-party information, data or communication link, under section 79 of the IT Act.
2. Central  Consumer  Protection  Authority  ('CCPA'),  established  under  the  Consumer Protection Act, 2019 ('CPA'), has issued a comprehensive advisory dated 6 th March, 2024  in  response  to  instances  of  advertisements  promoting  illegal  activities.  The advisory,  in  accordance  with  the  CPA  emphasizes  the  prohibition  of  advertising, promotion, and endorsement of unlawful activities prohibited under various laws.
3. The  Ministry  of  Information  and  Broadcasting  ('MIB')  has  also  issued  an  advisory dated  21 st March,  2024  to  media  including  social  media  platforms,  to  refrain  from publishing,  broadcasting  advertisements  of  online  betting  platforms  and/or  any  such product/service depicting these platforms in a surrogate manner. The online advertisement intermediaries have also been advised not to target such advertisements towards the Indian audience.
4. The grievance redressal mechanism to address the grievances related to cyber fraud and online fraud is as follows:
- a) IT Rules, 2021 require the appointment of a Grievance Officer by intermediaries to resolve the complaint. Such Officer is required to provide time-bound redressal of the grievances of the victim / complainant against the violation of these rules. In case the victim / complainant is aggrieved by the decision of an intermediary's Grievance Officer or does not receive timely redressal, she may prefer an appeal to  the  Grievance  Appellate  Committee  within  thirty  days  of  the  receipt  of communication from the Grievance Officer.
- b) Department  of  Consumer  Affairs,  administering  the  Consumer  Protection  Act, 2019 ('CPA') provides redressal of grievances of consumers through three-tier quasi-judicial  forums  from  district  to  state  to  national  level.  The  CPA  also provides  for  simple  and  speedy  redressal  of  consumer  disputes  including  those related with unfair trade practices. The Consumer Commissions at District / State /  National  level  are  empowered  to  give  relief  of  a  specific  nature  and  award, wherever appropriate, and compensation to consumers.
- c) Department  of  Consumer  Affairs  has  notified  the  Consumer  Protection  (ecommerce) Rules, 2020 under the provisions of the CPA to safeguard consumers from  unfair  trade  practices  in  e-commerce.  These  rules,  inter-alia,  outline  the responsibilities of e-commerce entities and specify the liabilities of market-place and inventory e-commerce entities, including provisions for customer grievance redressal.
- d) The Central Consumer Protection Authority ('CCPA) has also issued 'Guidelines for  Prevention  and  Regulation  of  DARK  Patterns,  2023'  on  30th  November, 2023 for prevention and regulation of dark patterns listing thirteen specified dark patterns identified in e-Commerce sector.
- e) Ministry  of  Home  Affairs  ('MHA')  has  established  the  Indian  Cyber  Crime Coordination  Centre  ('I4C')  to  provide  a  framework  and  eco-system  for  Law Enforcement Agencies ('LEAs') to deal with cyber-crimes in a comprehensive and  coordinated  manner.  MHA  has  also  launched  the  National  Cyber  Crime Reporting  Portal  (https://cybercrime.gov.in)  to  enable  the  public  to  report  all types of cyber-crimes. Cyber-crime incidents reported on this portal are routed to the respective State/UT law enforcement agency for further handling as per the provisions of law.

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