Consumer Coalition Advocates for Ban on Opinion Trading Platforms to Prevent Misleading Practices

Consumer Groups Unite to Combat Misleading Advertising in Opinion Trading Sector

In a significant move to safeguard consumer interests, the New Indian Consumer Initiative (NICI) and a coalition of prominent consumer advocacy organizations have submitted a joint representation to key government bodies, including the Ministry of Consumer Affairs, the Ministry of Information & Broadcasting, the Ministry of Finance, the Ministry of Electronics & Information Technology, the Securities and Exchange Board of India, the Advertising Standards Council of India, and the Parliamentary Standing Committee on Consumer Affairs. The coalition advocates for a ban on opinion trading platforms, which they claim engage in deceptive advertising practices that mislead consumers, lure them into illegal activities, and expose them to serious financial and psychological risks.

Notable signatories of the representation include Ramjibai Mavani, former Member of Parliament and founder of the Rajkot Jilla Grahak Suraksha Mandal, and Prof. Dr. Duraisingam, Chairman of Consumer Research, Education, Action, Training & Empowerment (CREATE). They highlight the significant harm posed by these platforms, which are frequently misrepresented as investment opportunities.

Abhishek Kumar, Convenor of NICI, stated, “Through this joint representation, we urge the government to prohibit opinion trading in India and take decisive measures. This includes issuing interim instructions to prevent consumer harm, banning digital and social media advertisements, and prohibiting app stores, cloud service providers, and payment gateways from supporting these platforms. We also call on the Central Consumer Protection Authorities to investigate misleading claims and for law enforcement agencies to freeze assets linked to these operations.”

Opinion trading platforms permit users to place bets on the outcomes of real-world events, simulating financial markets. However, despite their façade as skill-based games, the inherent binary nature of these wagers categorizes them as predominantly chance-based, raising significant legal concerns under the Bharatiya Nyaya Sanhita, 2023, which prohibits unauthorized betting and gambling.

One of the critical issues identified is the misleading advertising employed by these platforms. They often imply regulatory oversight and utilize financial terminology such as “Auto Profits” and “Stop Loss” to fabricate an illusion of structured investments. Many advertisements, including influencer promotions, inaccurately depict earnings as risk-free, potentially violating guidelines set forth by the ASCI and CCPA regarding misleading promotions.

Beyond threatening financial stability, these platforms have detrimental effects on users’ well-being, contributing to increased stress, compulsive gambling behaviors, and the normalization of gambling culture—particularly among economically vulnerable populations. With several countries now implementing strict regulations against opinion trading, the coalition is calling on Indian ministries to act swiftly to protect consumers’ rights, ensuring their right to be informed, heard, educated, and safeguarded.

Signatories Include:

Mr. Abhishek Kumar, Convenor, NICI
Prof. (Dr.) Duraisingham, Chairman, CREATE
Ms. Poonam Sharma, President, Rashtriya Samuddeshya Vikas Sansthan
Mr. R. D. Usmani, Director, IITED
Mr. Rakesh Parmar, President, Samajik Vikas Sansthan, Dholpur
Mr. RamjiBhai B. Mavani, Ex-MP and President, Rajkot Saher Jilla Grahak Suraksha Mandal
Dr. R. Ramesh, General Secretary, Tamil Nadu Consumer Protection and Environment Research Centre
Mr. Rijit Sengupta, CEO, Centre for Responsible Business
Dr. Shipra Mathur, Founder, PEN Media Literacy
Adv. (Mr.) Surendran PA, Advocacy Coordinator, Consumer Association, Palakkad