Consumer bodies appeal for opinion trading ban

The New Indian Consumer Initiative (NICI) and a coalition of leading consumer interest organisations have submitted a joint representation to various regulatory bodies appealing for a ban on opinion trading platforms in India. According to the joint representation, these platforms use deceptive ads to lure consumers to illegal betting, exposing them to financial and psychological risks.

Opinion trading platforms allow users to wager money on real-world event outcomes, mimicking financial markets but fundamentally functioning as gambling and betting platforms. With an estimated trading value exceeding INR 50,000 crores annually and reaching over five crore Indian users, they misrepresent themselves as skill-based games or investment platforms. However, the binary nature of these wagers makes these platforms predominantly chance-based, raising concerns about their legality under the Bharatiya Nyaya Sanhita, 2023, which prohibits unauthorised betting and gambling, , according to the representation.

The representation points out that these platforms use terms that are often used in the context of financial markets, such as ‘Stop Loss’ or ‘Auto Profits’ in their advertisements, thus, misleading consumers. Even the promotions by influencers falsely portray earnings as risk-free, potentially violating ASCI and CCPA guidelines on misleading promotions.

Beyond financial losses, these platforms can negatively impact users’ well-being, leading to stress, compulsive behaviour, and normalisation of gambling culture—particularly among economically vulnerable groups, the representation notes. With many countries enforcing strict regulations regarding opinion trading or even prohibiting it, the signatories of the joint representation have requested the authorities to act swiftly to protect consumer rights, including the right to be informed, heard, educated, and protected.

Abhishek Kumar, convenor, NICI, said, “We urge the government to ban opinion trading in India, block digital and social media advertisements, and prohibit app stores, cloud service providers, and payment gateways from supporting them. We also urge the authorities to investigate their misleading claims, and appeal to law enforcement agencies to freeze their assets.”

The signatories of the joint representation include Ramjibai Mavani, former MP, founder of Rajkot Jilla Grahak Suraksha Mandal, and Prof Dr Duraisingam, chairman, Consumer Research, Education, Action, Training & Empowerment (CREATE). The representation has been made to the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, Ministry of Electronics & Information Technology, Securities and Exchange Board of India, Advertising Standards Council of India, and Parliamentary Standing Committee on Consumer Affairs.