The Story Behind The Warning Issued To Social Media Influencers
As the number of commercials endorsing unlawful activities like gambling and betting rises, the Central Consumer Protection Authority (CCPA) has released a thorough advisory. It explicitly highlights the prohibition of advertising, promotion, and advocacy of illicit acts forbidden under numerous laws, in compliance with the Consumer Protection Act of 2019.
The Public Gambling Act of 1867 forbids betting and gambling, and most parts of the nation view these activities as unlawful. In spite of this, betting applications and online platforms continue to promote gambling and betting both openly and through the pretext of games. Supporting such endeavours has significant financial and socioeconomic ramifications, particularly for young people.
The advisory further emphasises that it is strictly forbidden to market goods or services that are illegal under any applicable law under the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
The advisory also highlights the efforts of the Ministry of Information and Broadcasting to warn social media platforms against promoting betting and gaming services through a number of advisories. Intermediaries for online advertisements have also been cautioned against directing these kinds of ads towards the Indian market.
What is the Central Consumer Protection Authority?
The Central Consumer Protection Authority’s (CCPA) mission is to advance, defend, and uphold the collective rights of consumers. It will have the authority to order the recall of harmful goods and services, the cessation of unfair trade practices and deceptive advertising, investigate complaints and potential legal action against violators of consumer rights, and penalise producers, distributors, and publishers of deceptive advertising.
The Impact of Betting Apps and Consumer Concerns
Without a question, gambling is a massive global industry that brings in billions of dollars annually. Advertisements that present it as casually as purchasing ordinary products raise concerns since they may encourage people to develop a spending habit that could put them in debt.
In terms of government intervention, winnings from gambling are subject to income tax regulations, which impose a 30% tax on them. On the other hand, there are worries about how betting and gambling may affect people’s money and general wellbeing. Excessive gambling can lead to addiction and financial hardship, which can have a detrimental impact on people and their families.
All social media influencers and endorsers have been sternly instructed by the Ministry of Information and Broadcasting to abstain from displaying any kind of promotional content or advertisements, including surrogate advertisements, for offshore online betting and gambling platforms.
The variety of business models is enormous and includes anything from high street bookies to on-track betting posts, internet casino games to high stakes poker in casinos. This sector of the economy, which is growing and shows no signs of slowing down, supports numerous local economies from New Zealand to Australia and Vegas to London. According to the ministry, these advertisements have important financial and socioeconomic ramifications, particularly for today’s youth.
Socio-Economic Impact
The effects of gambling on society are pervasive. They hurt the family as well as the gambler. Gambling is an amusement pastime that eventually develops into a habit. The younger generation has also joined the gambling addiction thanks to apps like Dream 11 and MPL. Eliminating this social issue is necessary to prevent the destruction of several families as it is spreading like a virus.
The rise in crime rates brought on by gaming is the other cause for concern. Individuals that lose in the process turn to unethical methods of debt repayment.
Financial Impact
Without a question, gaming brings in a considerable sum of money. However, the money made is illicit, which encourages black marketing. The economy suffers as a result. Even if there is a massive money distribution, nothing gets to the government and as a result, it hinders rather than promotes economic growth.
Health Issues
An addiction to internet gambling can have a negative influence on your health and cause psychological problems. It makes one feel vulnerable and uncomfortable emotionally. The psychological strain of having to pay off debt results in stress and other health problems. It weakens the person’s mental state, which might result in physical problems like high blood pressure and other conditions of a similar nature.
Conclusion
The extensive advertising campaign is the cause of the growing popularity of these online gambling programmes and websites. An advertisement about investing money in the guise of a game is being broadcast in misleading ways to attract more individuals. This also captures the interest of teenagers. What at first glance appears to be a game becomes an addiction that slowly eats away at you. Regulations and governance of internet gaming sites are also urgently needed.
These sites could also be a source of funding for terrorism, according to recent studies. Certain cases demonstrate that money laundering occurs while hiding behind internet gaming. There is no legitimacy because there are no regulations from the government.
