January 2024

A dark pattern, also known as deceptive design pattern, is where “a user interface that has been carefully crafted to trick users into doing things, such as buying overpriced insurance with their purchase or signing up for recurring bills”. Harry Brignull, a user experience designer came up with this term in 2010 and created a website where Brignull addresses the growing issue of deceptive design practices that happen on various digital platforms. As defined by Central Consumer Protection Authority (CCPA), dark patterns are “any practices or deceptive design patterns using UI/UX (user interface/user experience) interactions on any platform; designed to mislead or trick users to do something they originally did not intend or want to do; by subverting or impairing the consumer autonomy, decision making or choice; amounting to misleading advertisement or unfair trade practice or violation of consumer rights.” Now, the CCPA has notified Guidelines for Prevention and Regulation of Dark Patterns, 2023, issued under section 18 of the Consumer Protection Act, 2019, in the Official Gazette on November 30. Department of Consumer Affairs (DoCA) along with the Advertising Standards Counsil of India (ASCI) conducted an interactive consultation with stakeholders on “dark patterns.” The report has draft Guidelines on Prevention and Regulation of Dark Patterns. Falsely stating or implying the sense of urgency or scarcity so as to mislead a user into making an immediate purchase or take an immediate action, which may lead to purchase. Inclusion of additional items such as products, services, payments to charity/donation at the time of checkout from a platform, without the consent of the user, such that the total amount payable by the user is more than the amount payable for the product or the service chosen by the user. Using a phrase, video, audio, or any other means to create a sense of fear or shame or ridicule or guilt in users’ mind, so as to nudge the user to act in a certain way that results in the user purchasing a product or service from the platform or continuing a subscription of a service. Forcing a user into taking an action that would require the user to buy any additional good or subscribe or sign up for an unrelated service, in order to buy or subscribe to the product originally intended by the use. A design element that manipulates the user interface in ways that highlights certain specific information and obscures other relevant information relative to the other information, to misdirect a user from taking an action desired by her. The practice of advertising a particular outcome based on the users’ action but deceptively serving an alternate outcome. A dark pattern due to which users face an overload of requests, information, options or interruptions unrelated to the intended purchase of good or services which disrupts the intended transaction. Dec 02,2023 Source: Deccanherald

As 2023 draws to a close, the finance ministry informed Parliament of a surprising 28% increase in unclaimed deposits to Rs42,270 crore on 31 March 2023 (against Rs32,934 crore during FY21-22). Get ready for an even more staggering truth: this figure of unclaimed deposits represents a mere quarter of the money that is locked away in ‘inoperative’ bank accounts. A stupendous sum of nearly Rs1 lakh crore, by conservative estimates, representing the earnings of ordinary people is lying with banks under the head ‘inoperative accounts’; while some of these may become operative, it represents money that is on the way to being classified as ‘unclaimed funds’. Allow me to explain.  Information provided to Parliament shows that of the unclaimed deposits of Rs42,270 crore, only Rs6,087 crore were with private banks; public sector banks (PSBs) accounted for the bulk, at Rs36,185 crore. Moreover, only PSBs are subject to the Right to Information (RTI) Act.  Bank accounts are classified as ‘unclaimed’ when they have remained inoperative for at least 10 years; these are then transferred to the depositor education and awareness fund (DEAF) of the Reserve Bank of India (RBI). On the other hand, a bank account that is not operated for two years is termed ‘inoperative’ and there is a rather cumbersome process to get it activated again. Also, data about inoperative accounts is not publicly available.  So Aakash Goel, an engineer, management graduate and chartered financial analyst, filed an RTI application with department of financial services (DFS) of the Union finance ministry in August 2023, hoping to obtain comprehensive information on such accounts. DFS promptly transferred the application to RBI, which, in turn, forwarded it to 11 PSBs. All of them ignored the RTI query until Mr Goel filed a first appeal at the end of September 2023.  Then, too, the results were partial. Only 10 out of 12 banks responded. Indian Overseas Bank has yet to respond. State Bank of India (SBI), shockingly, claimed that it does not even collate this basic information – an answer that ought to receive special attention from the banking regulator.  Dec 29,2023 Source: Moneylife

Bournvita, a popular chocolate malt drink mix manufactured by Cadbury, has now reduced the quantity of added sugar by 14.4 percent. Earlier, the popular health drink consisted of 37.4gm sugar per 100gm. Now, the new packaging reveals that it has 32.2 gm of added sugar. In April this year, Revant Himatsingka aka Food Pharmer, a Health Influencer with more than 1.5 million followers across social media, uploaded a video on Bournvita on Instagram highlighting its high sugar content. Soon, the video went viral getting over 12 million views. Himatsingka told Financial Express.com that Bournvita still has 32g of added sugar per 100g (so approximately 1/3rd of Bournvita is sugar) so he still does not recommend it as a “health drink”. “Bournvita has taken a crucial step so it is a positive step in the right direction. These things take time…and the bigger thing is I made a video and this happened. What if everyone starts doing this? There will be so much more change,” he told Financial Express.com. The Health influencer also maintained that this will also set an example for other brands and companies. “A few months ago Maggi Ketchup had made a change by reducing the quantity of their added sugar by 22 percent…I got a lot of criticism from people around me for making the video on Bournvita. They used to say a video won’t do anything. But that video led to this…this is big. This is going to be a chain reaction. One company has done it and others will also do this,” Himatsingka said. Dec 22,2023 Source: Financialexpress

Retailers Association of India has recommended the central government that the Union Budget for FY 23–24 should focus on generating demand and spurring consumption by offering benefits or concessions in the form of lower taxes. The association said that it will boost the overall consumer sentiment and benefit the retail sector. Tax benefits and relief to individual tax payers will increase the monthly disposable income and support consumption. “The budget must prioritize growth-oriented measures to stimulate demand and consumption. The budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to aid in the development of the retail industry,” said RAI. Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail market is estimated to be worth $1 trillion and is expected to reach $2 trillion by 2032. India is one of the fastest growing retail markets in the world. “There is a need to provide lower interest rate to the retailers through the special announcement in the budget to assure easier financing for the Retail businesses. The government should allocate a special fund and formulate a special trader finance scheme with SIDBI to help millions of independent retailers across the nation by declaring low-cost loans and relaxing some industry guidelines,” RAI has said. RAI has also requested to consider retail as an essential service and F&B retail sector needs to be considered as a priority and an essential service. Jan 10,2024 Source: Economic Times

Broadcasters Zee Entertainment Enterprises, Sony Pictures Networks India, and Viacom18 have raised TV channel bouquet prices to offset rising content expenses that will affect monthly TV bills for consumers. Network18 and Viacom18’s distribution arm IndiaCast has raised the price of their bouquets by 20-25% after adding big-ticket sports properties to their portfolio. Zee hiked the price of its bouquets by over 9–10%, while Sony’s bouquet prices have gone up by 10–11%. Disney Star is yet to unveil its new bouquet pricing. While the broadcasters said the new pricing will come into effect on February 1, regulation states that they can implement the new pricing 30 days after the publication of the reference interconnect offer (RIO). However, with 2024 being an election year, the Telecom Regulatory Authority of India (TRAI) is carefully monitoring broadcaster rate cards to avert customer outrage. TRAI sources indicate the regulator will scrutinize broadcaster bouquets to ensure compliance with the new tariff order (NTO) 3.0. Broadcasters have increased their prices for the second time following the implementation of NTO 3.0 by the TRAI in November 2022. The TV channel prices were frozen for nearly three years before February 2023 due to an impasse over the implementation of NTO 2.0. The price hike in February 2023 followed a dispute between broadcasters and cable TV companies, resulting in broadcasters switching off TV signals to cable TV operators. Broadcasters are required to declare both a la carte and bouquet prices for their channels, but most consumers prefer bouquets for cost efficiency. Industry executives point out that Viacom18’s aggressive price hike stems from its investment of upwards of Rs 34,000 crore in sports rights, which include Indian Premier League (IPL) digital rights, BCCI media rights, Cricket South Africa media rights, and the Olympics 2024. “Viacom18 is targeting strong double-digit growth in subscription revenue due to the addition of BCCI. Sony and Zee have settled for an inflation-linked hike,” said a top-level executive with a leading broadcasting firm. According to a source aware of the development, Disney Star is contemplating its pricing strategy after it lost the BCCI media rights and the uncertainty over the fate of the International Cricket Council (ICC) TV rights deal. Disney Star acquired ICC media rights for $3 billion and sublicensed the TV rights to Zee while retaining the digital rights. Zee is yet to fulfill its part of the commitments to Disney Star, which is holding up the sub-licensing deal. “Zee’s bouquet pricing doesn’t seem to factor in the ICC TV rights. It will be interesting to see Disney Star’s new pricing since they have lost BCCI rights and ICC TV rights is now their responsibility,” said a veteran TV distribution executive. Jan 06,2024 Source: Economic Times

It is indeed a matter of pride that India is today a beacon of growth in a world faced with multi-dimensional challenges. The Prime Minister’s vision to build a Viksit Bharat through a far-reaching paradigm of sustainable and inclusive growth, the government’s multidimensional interventions including policies to accelerate physical and digital infrastructure hold the promise to transform India into a global manufacturing hub even as it strengthens its leadership in climate action, services growth and prowess in technology. An aspirational society and young demographics are contributing to a growing consumer market. FMCG therefore represents an area of immense potential. The market size of the FMCG segment by 2030 is estimated at over Rs 21 trillion. Experts indicate that consumption rises at a much faster pace when per capita incomes cross $4,000, as is expected in India by 2030. There is today an increasing consumer preference for trusted brands, convenience, offerings in health and wellness as well as premium products. In 2024, a rising Bharat with unbounded aspirations, the massification of digital access and democratisation of premiumisation will further broaden opportunities for the FMCG sector. The key driver to unleashing FMCG growth through a virtuous cycle of consumption, investment and income lies in creating gainful livelihood opportunities. It is here that the transformation of the agri sector gains critical importance given its predominant role in livelihood creation. This sector also bears the challenge of providing food security to India’s projected population of 1.5 billion by 2030 even as extreme weather events continue to multiply and make farmers vulnerable. It is mission critical to focus on adaptation measures to build climate resilience to secure livelihoods. ITC has therefore launched an extensive Climate Smart Agriculture programme that is demonstrating encouraging results. ITC’s Mission Millets is also promoting this planet friendly crop through nutritious and innovative products, sustainable agriculture and consumer awareness. Adoption of digital technology by farmers to enhance productivity and access to gainful markets will create newer opportunities, an area that ITCMAARS is spearheading with an aspiration to reach 10 million farmers. Unleashing India’s tourism potential will also add to supporting largescale livelihoods. These concerted efforts to secure and raise incomes will not only fuel growth in FMCG but contribute to our shared aspiration of a developed India. Jan 01,2024 Source: Economic Times

Packaged food companies have rejigged their millet-based products strategy, following initial hiccups. Many have gone back to the drawing board and relaunched products, selling ₹10-20 packs at a par with other non-millet items to induce trials, create awareness about the health benefits and expand reach to the kiranas. Companies had ventured into the market following the government’s nudge on increasing millet consumption. Sales, however, have been sluggish due to the consumer perception that these products are not tasty and are priced high, apart from the difficulty in adding millets as ingredients in existing items – as it changes flavour – and low shelf life. ITC, for instance, has withdrawn a multi-millet dosa batter, instead unveiling roti, paratha and dosa batter mixes that contain millets. It’s also adding millets in some snacks and confectionery products without increasing prices, and launching lower price-point packs to boost adoption and overcome the poor taste perception. Nestle’s research and development team is partnering with the Indian Institute of Millets Research and culinary experts to improve the taste profile. Parle Products will expand its millet-based biscuit portfolio with small packs priced at ₹20, while breakfast cereal maker Bagrry’s India is launching ₹10 sachets as with cornflakes or children’s cereal. “Millets, as a category, is picking up, though it’s early days. There are long-term changes in habits that we are working on… it is good for the nation,” said Hemant Malik, executive director, ITC. “The first and the biggest issue to solve is the perception that the taste will be bad. Prices will gradually become better as production increases. We have put our might behind millets.” Nestle India R&D head Jagdeep Marahar recently told analysts that millets are not the easiest of grains to be consumed or even to be processed, apart from the taste issue. “There are challenges because there are 13 types of millets, and each is different in size, hardness, in the way that we process these. They have in their inherent form, very low shelf life, which keeps the consumers away,” he said. Companies such as ITC and Nestle have announced their intention to make millet-based products a dominant part of their portfolio. Under ITC’s Mission Millets, almost one-fourth of new food launches will be based on these grains. Mayank Shah, senior category head at Parle Products, said taste cannot be compromised at any cost. Also, the increase in demand has led to a rise in cost. “Even now, millet cultivation is lower than demand and hence, prices are still high,” he said. Bagrry’s India director Aditya Bagri said the company will create awareness at the shop level on the benefits of millets, as part of a strategy to encourage trials and adoption. In the previous quarter, Hindustan Unilever (HUL) rolled out millet-based chocolate Horlicks, while Britannia launched millet bread. Nestle introduced ready-to-cook A+ Masala Millet. Several startups are also selling millet-based products. The United Nations, at the behest of the Indian government, declared 2023 the International Year of Millets. The aim was to create awareness and increase production and consumption of the grains. India is among the top five exporters of millets and shipped out millets worth $75.46 million in FY23, compared to $62.95 million in FY22, show government data. Dec 31,2023 Source: Economic Times

In a captivating economic narrative, India’s gold market finds itself at a pivotal juncture, delicately manoeuvring through the interplay of age-old traditions and modern financial evolution. An in-depth econometric analysis sheds light on the intricate web of factors influencing the dynamics of one of the world’s largest gold-consuming nations. India, now crowned as the most populous nation globally, holds a trump card in its youthful demographic structure. With a median age of 27, the country anticipates significant economic benefits, driven by a working-age population set to grow by approximately 7 million annually until 2041. This demographic dividend lays the foundation for robust economic expansion, rising incomes, and a burgeoning middle class, all of which serve as catalysts for increased gold demand. The intricate dance of India’s demographic dynamics, coupled with socio-economic factors, is unfolding against the backdrop of a long-term projection by the International Monetary Fund (IMF), foreseeing a 23 per cent per capita GDP growth between 2022 and 2026. This growth projection fuels optimism about the country’s economic trajectory, further solidifying the foundation for potential growth in gold demand. To unravel the complexities of India’s gold market, an econometric model takes centre stage. Drawing on three decades of data from 1990 to 2020, this model deciphers the complex relationship between income, gold prices, and government policies. The findings reveal that, on the long-term horizon, rising income plays the most substantial role in driving gold demand. A 1 per cent increase in gross national income per capita corresponds to a 0.9 per cent rise in gold demand, showcasing the profound impact of economic prosperity on the nation’s affinity for gold. While the long-term trends paint a positive picture, the short-term landscape is characterized by volatility and diverse influences. Inflation, sharp changes in gold prices, tax regimes, and even climatic factors like excess rainfall all contribute to the nuanced dance of India’s gold market. Market participants find themselves navigating through this intricate web of factors, making cautious decisions in response to short-term fluctuations. India’s gold preferences reveal a stark dichotomy between rural and urban landscapes. While rural areas exhibit a strong affinity for gold jewellery as both an investment and adornment, city dwellers lean towards gold bars and coins for investment purposes. The changing dynamics in the rural economy, coupled with government measures to boost incomes, add layers of complexity to gold consumption patterns. In recent years, the rural economy has faced challenges, with annual growth in nominal monthly rural wages averaging just 4.6 per cent from 2014 to 2020. Dec 28,2023 Source: Economic Times

Canara Bank is liable to pay Rs 9.09 lakh as compensation to a 95-year-old non-resident Indian (NRI) customer. Canara Bank has to pay the compensation amount because it did not provide good services and indulged in unfair trade practices. The payment of compensation has been directed by the National Consumer Disputes Redressal Commission (NCDRC) to Swaran Singh Saggu, a 95-year-old NRI. As per the NCDRC, “This is a clear-cut case of deficiency in service and unfair trade practice on the part of OPs, entitling the complainant to a reasonable amount of compensation in addition to reliefs for actual losses”. According to the NCDRC order, the NRI deposited an amount in a Foreign Currency Non-Resident Account (FCNR) fixed deposit with the Canara Bank. This FCNR deposit was set to mature on specific dates. The NRI wanted to encash these FCNR deposits and transfer the amounts to his UK bank accounts. The necessary details for the same were provided to the bank as well. However, the bank delayed the process of transferring money – despite repeated visits and requests – claiming inability to locate the original file. Further, the bank used pretences that were deemed unfair and disregarded their obligations towards the NRI, said the NCDRC order. It is further revealed that FCNR deposits were encashed without the knowledge of the NRI. The bank did not provide the necessary information to the NRI. Canara Bank also failed to transfer the amount until a High Court order mandated the transfer of the amount to the NRI’s Kotak Mahindra Bank account in India. The NRI sought court intervention due to his prolonged stay in India, incurring significant expenses for lodging, legal counsel, and health reasons. The High Court eventually ordered the transfer to the specified account, acknowledging the NRI’s legitimate claim over the deposited amounts. It is important to note that NRI also filed a case under the Consumer Protection Act where the State Consumer Commission partially upheld the NRI’s claim against Canara Bank for deficient services related to the release of FCNR amounts. The State Commission directed the bank to pay the complainant Rs 5,09,288 for losses incurred due to income loss during encashment, legal fees, hotel expenses, and compensation. However, NCDRC increased compensation payable to Rs 9.09 lakh from Rs 5.09 lakh. The NCDRC held a view that the compensation of Rs 1 lakh (out of Rs 5,09,288) awarded by the State Commission is a meagre amount and the NRI deserves to get much higher compensation for the mental agony and hardship at this age. Accordingly, NCDRC directed Canara Bank to pay a total sum of Rs 9,09,288 (Rs 4,09,288 awarded by State Commission on various items, except compensation and Rs 5 lakhs towards compensation) along with a litigation cost of Rs. 25,000 in connection with the present. Dec 21,2023 Source: Economic Times

The Delhi High Court has set aside a 2011 order of the CIC that directed the disclosure of the opinion given to the Centre by the then Solicitor General of India in 2007 in various cases filed by the Cellular Operators Association of India on the allotment of 2G Spectrums. The court held that such information was exempted under the provisions of the Right to Information (RTI) Act except when there are “weighty reasons” to support that its disclosure is in public interest. Justice Subramonium Prasad, while dealing with the Centre’s challenge to the Central Information Commission (CIC) order, said that the relation between the Solicitor General and the Government of India is that of a fiduciary and a beneficiary, and hence excepted under Section 8(1)(e) of the Act. The opinion can only be allowed to be disclosed “if public interest in disclosure outweighs the harm to the protected interest” in terms of section 8(2) of the RTI Act. In the present case, since the RTI applicant did not demonstrate the public interest, the order of the CIC could not be sustained, opined the court, the HC said. “Just by simply stating that it is in public interest to disclose the information would not be sufficient unless weighty reasons are given as to how the information which is exempted from being provided under Section 8(1) of the RTI Act should be provided and as to how the public interest would outweigh the harm to the protected interest,” said the court in a recent order. “This court finds no infirmity with the argument put forth by the Counsel for the Petitioner (Centre) that the advice tendered by the Solicitor General to the Union of India and other various government departments is done in the nature of a fiduciary, and hence the exception of Section 8(1)(e) of the RTI Act has been invoked,” it concluded. The court observed that as per the rules for the engagement of Law Officers, it is the duty of the law officers to give advice to the Government of India on legal matters and a law officer is not allowed to hold brief for any party except with the permission of the Government of India. The Solicitor General of India is duty bound to work for the benefit of the Union government which trusts and places reliance on him in return, it said. The court observed that the RTI Act has the objective of empowering the citizens to seek information from any public authority and uphold the principles of true democracy by keeping public authorities in check by making them answerable to the public. However, it added that not all information can be disclosed, and section 8 provides for “Exemption from disclosure of Information” which suspends the obligation for disclosure of information under various heads and this exempted information can only be provided in the interest of the public at large. Dec 23,2023 Source: Economic Times