Consumer Interest Organizations Unite to Call Out the Need for Urgent Regulation

The New Indian Consumer Initiative (NICI) in collaboration with PEN Media Literacy hosted a virtual workshop titled “Consumer Interest and the Need for Regulation for Opinion Trading in India”. The session brought together consumer interest organizations from several states like Tamil Nadu, Gujarat, Rajasthan, Uttar Pradesh, and Delhi to discuss the rapid rise of opinion trading in India, accompanying risks to consumers and the need for a structured regulatory framework.

Opinion trading platforms allow users to wager on real-world events such as elections, stock market movements, and economic trends with monetary stakes. These platforms portray themselves in several ways ranging from gaming platforms, trading platforms and even as investment platforms but are outside the purview of relevant regulatory bodies thus increasing risks for consumers. With transaction volumes exceeding ₹50,000 crore annually and over 5 crore users, the platforms have grown on the back of advertisements which often make claims of exaggerated winnings and wagering as a reliable source of income.

“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 discussion also covered the significant financial and mental health risks associated with these platforms, including the potential for debt cycles and addiction, especially among young users. Furthermore, experts also pointed to international regulatory frameworks such as those in Singapore, the EU, and the US—as examples of stricter oversight, contrasting with the regulatory vacuum in India. They emphasized the urgent need for a coordinated regulatory approach involving multiple stakeholders, including SEBI, Ministry of Consumer Affairs, Ministry of Information & Broadcasting and Advertising Standards Council of India to safeguard consumers and curb misleading advertisements.

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.

All participants to the discussion unanimously called out the need to amplify concerns regarding preponderance of chance in opinion trading which makes it akin to betting and gambling. While highlighting the urgent need for a coordinated regulatory approach to protect consumers and promote responsible business practices, convenor of New Indian Consumer Initiative, Abhishek Kumar, also highlighted the possibilities of manipulation of some real world events if these platforms are not adequately regulated.

Rijitsen Gupta, CEO, Centre for Responsible Business called out the need for such businesses and their investors to observe responsible business behaviour and think of larger societal implications. He also suggested that even a regulator like the RBI should be concerned as volumes of transactions increase on such platforms.

Shipra Mathur, Founder, PEN Media Literacy and Former Head Causes & Campaign at Rajasthan Patrika expressed concerns as to why Indian regulatory  bodies have not taken note of the need for regulation of opinion trading especially when several other Asian and western countries have done so.

With increasing participation on these platforms, the session concluded with a call for stronger policy interventions to prevent consumer harm and ensure responsible business practices in the sector. All participating organisations expressed the need for joint representations to relevant regulators. As next steps, NICI and PEN Media Literacy will share a joint representation with the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, SEBI and ASCI on the need to prohibit these opinion trading platforms in India.

Last Updated on 6 hours by News Desk 1