INDIA Law and Practice Contributed by: Shivalik Chandan, Hardik Choudhary, Dhruv Singh and Arjun Khurana, G&W Legal
covered within the scope of OIDAR services as discussed in 1.2 Digital Economy Taxation . As such, the tax implications and compliance requirements for digital advertising services are the same as those discussed above. 1.4 Consumer Protection India has a dedicated consumer protection law, along with other regulations that impact digital goods and services in the TMT sector. Broadly, these include: • Consumer Protection Act, 2019 (CPA) & Con - sumer Protection (E-Commerce) Rules, 2020 (the “E-Commerce Rules”) – The CPA outlines consumer rights and the duties and liabilities of platforms, including e-commerce services. The E-Commerce Rules target e-commerce entities, imposing restrictions on unfair trade practices and cancellation charges, requiring grievance redressal mechanisms, and man - dating labelling and information obligations. These rules apply to foreign entities that “sys - tematically” offer goods or services to Indian consumers. • Guidelines on Restriction of False or Mis - leading Advertisements – In 2022, the Indian government issued these guidelines, which impose restrictions on advertisers, advertising agencies, manufacturers, sellers and trad - ers, outlining conditions for non-misleading advertisements, standards for valid “bait” advertisements, and prohibiting surrogate advertising. • Guidelines for Prevention and Regulation of Dark Patterns, 2023 – The Central Consumer Protection Authority issued these guidelines, prohibiting entities, including e-commerce companies, from engaging in dark patterns on their websites. The guidelines list 13 spe - cific “dark patterns”, such as false urgency,
basket sneaking, subscription traps, bait and switch, and drip pricing. • Information Technology (Intermediary Guide - lines and Digital Media Ethics Code) Rules, 2021 (the “IT Rules 2021”) – The IT Rules 2021 regulate content, media and games offered over the internet and include a griev - ance redressal mechanism among their provi - sions. • Digital Personal Data Protection Act, 2023 (DPDPA) – The DPDPA governs the process - ing of personal data in the digital realm, imposing obligations on data fiduciaries regarding customer data. The act is yet to be fully implemented, and the Indian government recently published rules (the “draft DPDP Rules 2025”) under the law for public consul - tation. Legal Frameworks for Resolving Consumer Complaints in the Digital Economy The CPA establishes Consumer Disputes Redressal Commissions at three levels – district, state, and national – in a hierarchical and appel - late structure. These commissions adjudicate consumer disputes, including those from digi - tal transactions. In February 2024, the govern - ment launched the “e-Jagriti” portal, an online mechanism for handling cases across commis - sion levels. Upholding Consumer Rights and Best Practices Companies in the sector can uphold consumer rights through: • transparency – ensuring clear communication about products, services, pricing, terms and conditions, and other relevant information; • data protection compliance – adhering to applicable data protection laws; and
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