- Sign-up for a Representation to Ministries namely Consumer Affairs Ministry, Ministry of Broadcasting, Ministry of Finance & SEBI
- Partners with PEN Media Literacy to attract more consumer interest groups join this virtual workshop on the Need For Regulating Opinion Trading in India
The virtual session “Consumer Interest and the Need for Regulation for Opinion Trading in India” was organized by PEN Media Literacy and the New Indian Consumer Initiative (NICI). Consumer advocacy groups from a number of states, including Tamil Nadu, Gujarat, Rajasthan, Uttar Pradesh, and Delhi, convened for the discussion to talk about the swift growth of opinion trading in India, the associated consumer hazards, and the requirement for a well-organized regulatory framework.
Users of opinion trading sites can place monetary bets on actual events like elections, stock market fluctuations, and economic trends. These platforms present themselves in a variety of ways, such as trading platforms, gaming platforms, and even investment platforms, but they are not subject to the appropriate regulatory oversight, which puts customers at greater risk. With over 5 crore users and transaction volumes above ₹50,000 crore yearly, the platforms have expanded thanks to ads that frequently portray gambling as a dependable source of income and make extravagant claims about profits.
“The rapid rise of opinion trading platforms in India is a cause of concern for consumers, where the lines between gaming, trading, and investment are increasingly blurred. These platforms, often marketed as reliable sources of income, are leading to significant financial and mental health risks. There is an urgent need for a coordinated approach to protect consumers, ensure transparency, and promote responsible business practices. We aim to engage with different ministries in our capacity to drive caution and request for intervention against these platforms.” said Mr. Abhishek Kumar, Convener, NICI.
The substantial hazards to one’s finances and mental health that come with these platforms were also discussed, including the possibility of addiction and debt cycles, particularly for younger users. In addition, experts cited overseas regulatory frameworks—such as those in the US, Singapore, and the EU—as instances of more stringent scrutiny in contrast to India’s regulatory void. To protect consumers and stop deceptive advertising, they underlined the urgent need for a coordinated regulatory strategy involving several stakeholders, including SEBI, the Ministry of Consumer Affairs, the Ministry of Information & Broadcasting, and the Advertising Standards Council of India.
The workshop was attended by representatives of multiple consumer interest organizations such as Ramjibai Mavani, Former Member of Parliament and Founder of Rajkot Jilla Grahak Suraksha Mandal; Prof. Dr. Duraisingam, Chairman, Consumer Research, Education, Action, Training & Empowerment (CREATE); Rijit Sengupta, CEO, Centre for Responsible Business; Shipra Mathur, Founder PEN Media Literacy, Dr R D Usmani, Director, Indian Institute of Technology & Entrepreneur Development; Poonam Sharma, President Rahtriya Sammudeshya Vikas Sansthan and Takshit Mathur – Tech Entrepreneur, amongst others.
Concerns about the preponderance of chance in opinion trading, which equates it to betting and gambling, were unanimously raised by all conversation participants. In addition to stressing the urgent need for a coordinated regulatory approach to safeguard consumers and encourage ethical business practices, Abhishek Kumar, convenor of the New Indian Consumer Initiative, also emphasized the potential for manipulation of certain real-world events in the event that these platforms are not sufficiently regulated.
The CEO of the Centre for Responsible Business, Rijitsen Gupta, emphasized the necessity for these companies and their investors to follow ethical business practices and consider broader societal ramifications. Additionally, he said that if the number of transactions on these platforms rises, even a regulator like the RBI should be concerned.
Shipra Mathur, the founder of PEN Media Literacy and the former head of causes and campaigns at Rajasthan Patrika, raised worry about the lack of attention given by Indian regulatory organizations to the need to regulate opinion trading, particularly in light of the fact that several other Asian and Western nations have done so.
The session ended with a request for more robust governmental interventions to minimize consumer harm and guarantee ethical corporate practices in the industry, given the growing number of participants on these platforms. Every participating organization conveyed to the appropriate regulators the necessity of collective representations. As a next step, NICI and PEN Media Literacy will jointly address the need to outlaw these opinion-trading platforms in India to the Ministry of Finance, the Ministry of Information & Broadcasting, the Ministry of Consumer Affairs, SEBI, and ASCI.
