SpeakUp

In order to protect consumers’ interest, the government has banned use of “dark patterns” on e-commerce platforms which intend to deceive customers or manipulate their choices. A gazette notification in this regard as “Guidelines for prevention and regulation of dark patterns ” was issued on November 30 by the Central Consumer Protection Authority(CCPA) which is applicable to all platforms offering goods and services in India, and even advertisers and sellers. Resorting to dark patterns will amount to misleading advertisement or unfair trade practice or violation of consumer rights. The penalty will be imposed as per the provisions of the Consumer Protection Act, it added. “In the emerging digital commerce, dark patterns are increasingly being used by the platforms to mislead the consumers by manipulating their buying choices and behaviour, “Consumer Affairs” Secretary Rohit Kumar Singh told PTI. The notified guidelines will ensure clarity in the minds of all stakeholders — buyers, sellers, marketplaces and regulators – as to what is not acceptable as unfair trading practices, the latter being liable under the Consumer Protection Act, he added. According to the notification, dark patterns have been defined as any practice or deceptive design pattern using user interface or user experience interactions on any platform that is 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. For instance, ‘basket sneaking’ is a dark pattern that includes additional items such as products, services, payments to charity or 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 service chosen by the user. Another dark pattern called “forced action” means forcing a user into taking an action that would require the user to buy any additional goods or subscribe or sign up for an unrelated service or share personal information in order to buy or subscribe to the product or service originally intended by the user. Likewise, CCPA has specified 13 dark patterns to provide only as a guidance for the industry. Initially, CCPA had identified 10 dark patterns but after the public consultation another three were included. Dec 02,2023 Source: Economic Times

Delhi High Court: A suit was filed seeking a decree of permanent injunction restraining the defendant, its directors, principals, officers, employees, agents, representatives and assigns from creating impediments in the dissemination of the plaintiff’s advertisement. Dinesh Sharma, J. directed the plaintiffs to run its original advertisement in a modified form with the disclaimer that DMF is not mandated under Indian law and is not a quality norm for products in India. The plaintiff company started using Active Pharmaceutical Ingredients (APIs) procured from United States Food and Drug Administration (USFDA) registered plants with valid DMF numbers, in its medicines. The Drug Master File (DMF) has all the information on the manufacturing, stability, quality, packaging, purity and impurity profile of API, for authorities to ensure that medicines of higher quality including very detailed and strict impurity profiles which safeguard against unknown adverse reactions. In June 2023, plaintiff came up with an advertisement campaign informing the public about the company’s initiative regarding procuring DMF Quality APIs for its medicines and spent INR 33 Crores on the advertisement. A law student filed complaint before Advertising Standards Council of India (ASCI) claiming that the advertisement claims that the medicines sold by the plaintiff are more effective and of better quality than of other Indian medicines, however, as DMF is not required by law for quality approval in India, promoting the advertisement on that basis may lead the public to believe other drugs are not safe to consume. The suit further seeks permanent injunction restraining the defendant from circulating the order dated 08-11-2023 to its members, the Government or the public in any manner and to set aside the findings in the defendant’s order dated 8-11-2023 against the plaintiff’s advertisement. It also seeks a declaration that the plaintiff’s advertisement and the claims made are fair and honest and does not constitute a violation of the requirements under the ASCI Code or any other advertising laws. Counsel for the plaintiff submitted that the advertisement is about the company’s initiative, not regarding a particular product. Further, the Plaintiff is not a member and therefore cannot be subject to ASCI, yet it sent a detailed response. However, the ASCI vide review order dated 08-11-2023 passed an order upholding the Complaint without considering the preliminary submissions made by Mankind and has also not given any reasoning as to why the previous order passed was incorrect. Counsel for defendants submitted that the suit is filed on the basis of a recommendation made by an advisory expert body which has no penal repercussions and the only action taken by the defendant in case of non-compliance is to inform the regulatory authorities thereby, leaving it up to them to take whatever action, if at all, is necessary. It further submitted that the Plaintiff is attempting to avert the regulatory/statutory proceedings, by approaching the Court prematurely as the issue in the present suit was limited to the way in which the product was being advertised and not to the actual sale of the product. Thus, the present suit was liable to be dismissed on account of lack of cause of action as the impugned order was merely a recommending order and the entire suit rests on the apprehension of future injury i.e. a quia timet case. The Court noted that without prejudice to the rights and contentions of the plaintiff, the plaintiff is ready to run declaimer as “DMF is not mandated under Indian law and is not a quality norm for products in India”. The Court directed that the plaintiff shall run the modified advertisement i.e., original advertisement with the disclaimer. The plaintiff shall avail the remedy of the “Independent Review Process” (IRP) within 10-days and may take all the objections as available under law. The department shall take the steps for the decision of the same in accordance with the law. The Court further directed that in the meanwhile, the defendant shall not send the recommendation as contained in the impugned order in the e-mail dated 08-11-2023 addressed to Mankind Pharma Limited. However, in case, the “Independent Review Process” (IRP) decides against the plaintiff, the respondent shall not send the recommendation to the appropriate authority for two weeks. Dec 04,2023 Source: Scconline

Should service charge be levied on restaurants bills or not has been the topic of debate among consumers and restaurant associations have even gone to court to argue that they can lawfully impose the service charge. Now, the latest survey done by Local Circles states that 77% respondents want service charge to be abolished or made optional. The survey received over 23,000 responses from citizens located in 304 districts. Sixty two percent respondents were men while 38% respondents were women. Forty five percent respondents were from tier 1, 32% from tier 2 and 23% respondents were from tier 3, 4 and rural districts. The High Court had directed 3,300 members of the Federation of Hotel and Restaurant Association of India (FHRAI) to replace the term ‘service charge’ with ‘staff contribution’. Justice Pratibha Singh in her order said, “It is directed that the members of FHRAI shall use the terminology ‘staff contribution’ for the amount of service charge that they are currently charging. The same shall not be more than 10% of the total bill amount, excluding GST. The menu card shall specify in bold that after the payment of staff contribution, no further tip is to be paid to the establishment.” As per the survey 53% percent respondents stated that service charge needs to be banned completely and 77% respondents wanted service charge to be abolished or made optional and only 10% of consumers going to air conditioned restaurants were fine with renaming service charge and charging it to ‘staff contribution’. When asked about the allocation of service charge among restaurant staff members, 34% of respondents indicated that part of service charges is likely “used to cover breakage, restaurant maintenance, some distributed among staff, remaining kept by management or used for bribes/tips to local authorities.” Eleven percent respondents said that it is “entirely distributed among staff” and 13% felt “some part of it is used to cover breakage, restaurant maintenance and the rest is distributed among staff.” Oct 03,2023 Source: Times of India

The Food Safety and Standards Authority of India (FSSAI) has urged food vendors and consumers to stop using newspapers for packing, storing, and serving food items, with immediate effect. Reportedly, the food regulator said that the ink used in newspapers contains certain chemicals that can pose various health risks. FSSAI Chief Executive Officer (CEO) G Kamala Vardhana Rao “strongly urged consumers and food vendors across the country to immediately stop using newspapers for packing, serving, and storing food items”, reads a PTI report. Why You Should Avoid Wrapping Food In Newspaper? What Are The Health Risks Involved? G Kamala Vardhana Rao further highlighted the risks associated with using newspapers to wrap and pack food items. According to FSSAI, the printing ink contains “various bioactive materials” that can be harmful to health. “The ink used in newspapers contains various bioactive materials with known negative health effects, which can contaminate food and lead to health issues when ingested,” Mr. Rao said. The report further reads that the ink may have chemicals such as lead and heavy metals that can enter the human body through the food served or wrapped in newspaper. “Moreover, newspapers are often subjected to various environmental conditions during distribution, making them susceptible to contamination by bacteria, viruses or other pathogens that may transfer to the food, potentially causing foodborne illnesses,” FSSAI warned. The food regulatory body has also notified the Food Safety and Standards (Packaging) Regulations, 2018, which prohibits the use of newspapers or similar materials for storing, packing, or wrapping food. According to the regulation, consumers and vendors must avoid using newspapers to cover or serve edible items. Newspapers should also not be used to absorb excess oil from fried foods like samosa or pakodas. The PTI report states that FSSAI is now working closely with the state food authorities to make sure that newspapers are not used by anyone to serve or pack food. G Kamala Vardhana Rao, while issuing the warning, stated that by discouraging the use of newspapers and promoting safer alternatives, FSSAI is reaffirming its commitment to ensuring the safety of food supplied in the country. Oct 02,2023 Source: NDTV

In recent years, Artificial Intelligence (AI) has emerged as a transformative force with the potential to revolutionize various industries across the globe. While its applications are numerous, one of the most promising and impactful areas is its ability to empower consumers in emerging markets. That’s us. In countries like India, Bangladesh, and across the African continent, AI is opening doors to greater access, affordability, and convenience in essential services, thereby enhancing the quality of life for millions. It’s time we learn how AI is helping us. Michael Puscar, an entrepreneur, venture capitalist, and a published data scientist, who has founded companies including Yuxi Pacific, GITP Ventures, Oiga Technologies and NPCx, says that the barriers to implement AI technology are now gone. “You no longer need to be a data scientist, an engineer, or even a programmer. It is 1997 again; but instead of the Internet, the technology that is changing industry is AI. There is a gold rush to implement this technology across every industry, from virtual travel agents to wine recommendation engines, from customer service to accounting,” he says. India pioneered the service economy in the 1990s with outsourcing, but AI now puts that sector at risk. However, despite India’s AI market being half the size of China’s, GlobalData research suggests India’s market growth outpaces that of China. In fact, India AI market size was estimated at USD 672.11 million in 2022, and AI expenditure in India is expected to reach $11.78 billion by 2025 and add $1 trillion to India’s economy by 2035, as per a World Economic Forum report. The country is poised to pivot from outsourcing to artificial intelligence. “Indian companies have intimate knowledge of the manual and repetitive tasks that usually accompany an outsourced project, and that means those same companies have a unique advantage in the race to automate those processes using AI,” Puscar adds. But the clock is indeed ticking, he says. “Just like the Internet boom of the 1990s that created Google (1998), Amazon (1994), eBay (1995), and PayPal (1998), thousands of entrepreneurs will create successful companies based on AI technology, and a few hundred will build multi-billion dollar companies. And just like the boom of the 90’s, this opportunity won’t last forever. The time is now,” he says. One of the significant challenges in emerging markets has been the limited access to traditional banking and financial services. Millions of people in these regions remain unbanked or underbanked, but AI is rapidly changing this landscape. Fintech companies are utilizing AI algorithms to assess credit risk, enabling those without a traditional credit history to access loans and financial services. In October, KPMG India, and Vianai Systems, a human-centered AI (H+AI™) platform and products company, tied up to put reliable, conversational AI directly into the hands of finance users with Vianai’s hila Enterprise. “Delivering the power of AI into the hands of finance users is a foundational step toward making AI available to all business-critical functions. Finance departments and teams must have transparency in their work and deliver transparency to the outside world – with speed,” says Dr. Sanjay Rajagopalan, Chief Design and Strategy Officer, Vianai Systems. AI-powered chatbots and mobile apps are aiding people to manage finances and payments securely. In countries like India, where the government has promoted digital payment systems, AI-driven financial tools have played a crucial role in boosting financial inclusion. Nov 14,2023 Source: Hindustan Times

The central government has announced plans to establish an online platform to address consumer complaints more efficiently. As per a TOI report, this platform will serve as a common interface for companies, service providers, and consumers, offering expert panels for quicker resolutions. The Ministry of Consumer Affairs has invited bids for an agency to design, develop, implement, and manage the “Online Dispute Resolution (ODR) Platform” for a three-year period. Currently, the ministry operates the National Consumer Helpline (NCH), which allows consumers to lodge complaints via a call center and portal. Once registered, these complaints are forwarded to relevant sellers, entities, or e-commerce players for resolution. If the complainant remains unsatisfied or if the issue is not resolved by the involved parties, consumers can choose to escalate the complaint to consumer commissions or courts. The ministry explained that the ODR platform will act as a preliminary channel for dispute resolution before consumers resort to costly and time-consuming legal proceedings. The aim is to provide a cost-effective, efficient, and convenient redressal solution, allowing stakeholders to resolve disputes online from the comfort of their homes. Consumers will be able to file complaints and complete the entire procedure online. Currently, there are more than 500,000 pending cases with consumer commissions, particularly in the e-commerce sector. The ODR platform seeks to address this backlog by offering a unified portal that enhances consumer protection and expedites e-dispute resolution. It will also employ Artificial Intelligence to match qualified expert counselors to specific requests based on location, expertise, experience, and language. This end-to-end ODR process aims to streamline consumer complaints and ensure timely resolutions. Nov 08,2023 Source: Economic Times

Delhi Police on Sunday busted a fake marksheet racket and arrested two people including the kingpin. The syndicate was involved in preparing forged degrees and certificates of various government and private universities and state education boards across India, the police said. The kingpin, who has been identified as Dal Chand Meherolia, was arrested from his education institute at MH Eduversity, Digital School of India in northwest Delhi’s Pitampura. As many as 19 fake mark sheets and degrees from Shanghai International University, William Carey University, Universities of Shillong, Uttarakhand, Rajasthan, Karnataka, Uttar Pradesh, Haryana, Kalinga, Bihar, and other states, were recovered, the police said. 11 laptops, 14 mobile phones, and fake stamps were also seized from the spot. “During the investigation, co-accused Mahaveer Kumar was also arrested from Burari and huge incriminating material including fake and blank degrees, certificates, mark-sheets and migration certificates of various universities and state education boards as well as laptop/ printers, fake stamps, etc. used in crime were recovered from his house,” the police said. During interrogation, the accused said that he had been running this institute since 2020 and had employed many tele-caller girls in his office. He revealed that the tele-caller girls used to call students to seek admission to universities and colleges and provided the data of interested students to him. Meherolia then contacted them through WhatsApp and lured them to get a degree without the required documents. He did not meet any student personally, the police said. For providing fake mark sheets from Class 10th to PhD, he charged ₹ 20,000 to ₹ 2,20,000. After receiving the amount, Meherolia used to send the degree through courier. Holograms of the documents were also prepared by both of them. Both the accused also told police that they have sold more than 2,000 fake degrees and that many of the marksheet holders have even jobs on the basis of forged documents provided by them. Nov 13,2023 Source: NDTV

Birla Institute of Management Technology (BIMTECH), one of India’s leading B-schools, organised the 7th BIMTECH Insurance Colloquium in Mumbai on Friday. The Colloquium was themed at “Expanding the Sustainable Value Chain: Climate Change’s Impact on Property & Casualty, Health and Life Insurance.”  There were intriguing and insightful conversations about the important relationship between climate change, insurance, and sustainability. Dr. H. Chaturvedi, Director, BIMTECH gave a heartfelt welcoming address to kick off the Insurance Colloquium. Prof. Bejon Kumar Misra, an expert in international consumer policy and a member of the General Insurance Council’s executive committee then gave an insightful theme address. Setting the tone for the day’s talks, former LIC of India Chairman M.R. Kumar then took the stage to give an engaging keynote address. release of the “India Insurance Report,” which offered insightful information about the current situation of the insurance market in India, was one of the event’s major highlights. Prof Bejon Kumar Misra, International Consumer Policy Expert, Member Executive Committee -General Insurance Council said, “In today’s world, we must prioritize sustainability, innovation, and the well-being of every individual. Let us work together, consult all stakeholders, and create a future where no one is left behind. As we strive to achieve ambitious goals, remember, there’s no shortcut to success, and customer delight is the key. We have the power to overcome challenges and make healthcare affordable for all. Let’s take the pledge to work together, innovate, and build a brighter future for India and the world.” M.R. Kumar, Former Chairman, LIC of India said, “Climate change will significantly impact the insurance industry with higher severity of cat losses, inadequacy of property coverages, and higher business interruption losses. India is one of the most vulnerable countries to climate-induced flooding and heat stress. The city of Mumbai could suffer economic damages of USD 49 to 50 billion by 2050 due to sea level rise. Insurers must integrate both physical and transition risks and find ways to manage them effectively. Policymakers may need to require insurers to extend coverage where economically unfeasible.” Atul D. Boda, Group Chairman of all the J.B. Boda Group of Companies, said, “Through 80 years of dedicated work, I have been privileged to witness the growth and success of J.B. Boda Group, a journey made possible by the collective efforts of a remarkable team. I extend my heartfelt gratitude to all our clients, stakeholders, and especially my life partner and family members for their unwavering support. With renewed energy and enthusiasm as a result of this recognition from BIMTECH, I will forward to continuing our journey and making great progress in the years ahead.” Prof. (Dr.) Abhijit K. Chattoraj, a Chartered Insurer and the Dean of SWSS; Professor & Chairperson of PGDM-IBM at BIMTECH, emphasized the importance of a net zero transition in underwriting while moderating the first session. The panel discussed how to mitigate losses caused by climate risks. Property and casualty underwriters must strategically work to seize the growth opportunities resulting from this transition. Underwriters must adjust their portfolio to minimize their carbon footprint.” The Colloquium concluded on a high note with the presentation of the Lifetime Achievement Award to  Atul D. Boda, Group Chairman of all the J. B. Boda Group of Companies. His acceptance address highlighted the industry’s commitment to addressing climate-related challenges. Nov 07,2023 Source: Bilkulonline

McAfee, a renowned cybersecurity company, recently conducted its first-ever Global Scam Message Study, aiming to comprehend the impact of scam messages and the growing sophistication of scams powered by artificial intelligence (AI) on consumers worldwide. Over 7,000 adults from seven countries, including India, took part in the study. According to the study, Indians receive an average of 12 fake message or scams per day, and they spend approximately 1.8 hours per week identifying these fraudulent messages. Shockingly, a staggering 82% of Indians have fallen victim to these fake messages. The most common types of scams reported are fake job notifications/offers (64%) and bank alert messages (52%). The survey conducted in India further revealed that 60% of respondents find it increasingly challenging to identify scam messages as hackers are utilizing AI to make them more believable. Additionally, 49% of individuals mentioned that these scam messages are now error-free, highly convincing, and even contain personal information, making them harder to recognize. The study also highlighted that Indians spend an average of 105 minutes per week verifying the authenticity of messages. Furthermore, 90% of individuals receive fake messages via email and text on a daily basis, while 84% encounter them on social media. Shockingly, 82% of participants admitted to clicking on these fake messages. As a consequence of the rise in AI-powered scams, 37% of Indian survey respondents reported a decrease in their trust in digital communications. Many Indians are uncertain about the appropriate measures to protect themselves from these scams. To cope with this knowledge gap, individuals adopt various strategies: 28% ignore scam emails, 28% block the sender, and 31% report the messages. However, despite their concerns, 88% of Indians trust AI to detect online scams, with 59% believing that AI is necessary to combat AI. Nov 08,2023 Source: Economic Times

The Department of Consumer Affairs (DoCa) has directed online travel platforms such as EaseMyTrip, Yatra, MakeMyTrip, HappyEasyGo and Cleartrip to refund booking amounts of airline tickets to consumers whose travel was disrupted by the pandemic. In 2020, the Supreme Court had also ordered airlines to refund passengers who were forced to cancel flight tickets due to the nationwide lockdown imposed by the government to arrest the spread of the coronavirus. The DoCA told the companies to process the pending refunds by the third week of November, failing which the Central Consumer Protection Authority(CCPA) will initiate legal proceedings in the apex court, including filing of a contempt petition against the defaulting platforms, it said in a statement. During a meeting on Wednesday, the department also discussed the possibility of integrating the National Consumer Helpline with the, a traveller support portal. The meeting was chaired by Rohit Kumar Singh, secretary, Department of Consumer Affairs. While Yatra has 5,695 refunds pending this year, EaseMyTrip has one refund pending, the statement added. MakeMyTrip has 63 pending refunds this year. DoCA highlighted commonly prevalent “dark patterns” on online travel platforms such as confirm shaming, showing pre-ticked checkboxes, triggering alarm and told them to find ways to counter these deceptive online practices and protect consumers’ interests in the travel sector. Nov 08,2023 Source: Economic Times