New Delhi: A coalition of leading consumer interest organizations, spearheaded by the New Indian Consumer Initiative (NICI), has jointly submitted a representation to key regulatory and government bodies, urging a ban on Opinion Trading platforms in India. The representation, addressed to the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, Ministry of Electronics & Information Technology, Securities and Exchange Board of India (SEBI), Advertising Standards Council of India (ASCI), and the Parliamentary Standing Committee on Consumer Affairs, highlights the deceptive nature of these platforms, which allegedly mislead consumers into illegal betting activities under the guise of investment opportunities.
The signatories of the representation include prominent consumer rights advocates such as former Member of Parliament Ramjibai Mavani, Founder of Rajkot Jilla Grahak Suraksha Mandal, and Prof. Dr. Duraisingam, Chairman of Consumer Research, Education, Action, Training & Empowerment (CREATE). They have expressed grave concerns over the financial and psychological risks posed by these platforms, particularly due to misleading advertisements that portray them as legitimate investment avenues.
Massive Market with Regulatory Concerns
Opinion trading platforms allow users to wager money on real-world event outcomes, closely resembling financial markets but operating primarily as gambling and betting platforms. Industry estimates suggest that the sector sees an annual trading volume of over ₹50,000 crore, with more than five crore Indian users actively engaging on these platforms. However, their binary betting model, which is predominantly based on chance, raises legal concerns under the Bharatiya Nyaya Sanhita, 2023, which prohibits unauthorized betting and gambling activities.
Abhishek Kumar, Convenor of NICI, has called for immediate government intervention, emphasizing the need for decisive action to curb consumer harm. “Through this joint representation, we urge the government to prohibit opinion trading in India and take decisive action, including issuing interim instructions, banning digital and social media advertisements, and restricting support from app stores, cloud service providers, and payment gateways. We also urge the Central Consumer Protection Authorities to investigate misleading claims and for law enforcement agencies to freeze assets linked to these platforms,” Kumar stated.
Deceptive Advertising and Consumer Harm
A key concern raised in the representation is the misleading marketing tactics used by opinion trading platforms. Many of these platforms falsely imply regulatory oversight and use financial jargon such as “Auto Profits” and “Stop Loss” to create an illusion of structured investments. Additionally, advertisements, including influencer-driven promotions, often depict earnings as risk-free, violating advertising guidelines set by ASCI and the Central Consumer Protection Authority (CCPA).
Beyond financial losses, these platforms have been linked to psychological distress, compulsive gambling behaviors, and a normalization of betting culture, particularly among economically vulnerable demographics. With global regulatory trends moving towards stricter oversight and prohibition, the coalition of consumer organizations has urged Indian authorities to take swift action to safeguard consumer rights, ensuring transparency, informed decision-making, and consumer protection in the digital economy.
