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The rapid innovation of technology and its resultant proliferation in India has integrated businesses that market technology-based products with commerce. Consumer habits have now shifted from traditional to technology-based products, with many consumers opting for smart devices, online transactions and online services. This migration has increased potential data breaches, product defects, misleading advertisements and unfair trade practices. 

The need to regulate technology-based commercial industry is seen in the backdrop of various threats that technologies pose, particularly to data. Most devices track consumer behaviour without the authorisation of the consumer. Additionally, products are often defunct or complex to use and the configuration process may prove to be lengthy with a vague warranty. 

It is noted that consumers also face difficulties in the technology service sector, even while attempting to purchase a product. These include vendor lock-ins (whereby a consumer finds it difficult to migrate from one vendor to another), dark patterns (deceptive strategies and design practices that mislead users and violate consumer rights), ethical concerns etc. 

Against this backdrop, consumer laws are now playing catch up to adequately cater to new consumer rights that come with technology. Consumer laws now have to evolve to become complimentary with other laws and legislation that govern and safeguard individual rights. This includes emphasising compliance with data privacy regulations, creating rules for ancillary activities such as advertising standards and setting guidelines for both product and product seller/manufacturer. 

The Legal Framework in India

Currently, Consumer Laws in India while not tech-targeted, are somewhat adequate; The Consumer Protection Act 2019 (“Act”) protects the rights of consumers in India. It places liability on manufacturers, sellers and service providers for any harm caused to a consumer by faulty/defective products. As a result, manufacturers and sellers of ‘Internet & technology-based products’ are brought under the ambit of this Act. The Consumer Protection Act 2019 may also be viewed in light of the Digital Personal Data Protection Act 2023, which mandates the security of the digital personal data of an individual. Envisioned provisions such as those pertaining to mandatory consent, purpose limitation, data minimization, mandatory security measures by organisations, data localisation, accountability and compliance by the DPDP Act can be applied to information generated by and for consumers.

Multiple regulatory authorities and departments have also tasked themselves to issue guidelines that imbibe the principle of caveat venditor. To this effect, the Networks & Technologies (NT) wing of the Department of Telecommunications (DoT) on 2 March 2023, issued the Advisory Guidelines to M2M/IoT stakeholders for securing consumer IoT (“Guidelines”) aiming for M2M/IoT (i.e. Machine to Machine/Internet of things) compliance with the safety and security standards and guidelines in order to protect the users and the networks that connect these devices. The comprehensive Guidelines suggest the removal of universal default passwords and usernames such as “admin” that come preprogrammed with new devices and mandate the password reset process to be done after user authentication. Web services associated with the product are required to use Multi-Factor Authentication and duty is cast on them to not expose any unnecessary user information prior to authentication. Further, M2M/IoT stakeholders are required to provide a public point of contact for reporting vulnerability and security issues. Such stakeholders must also ensure that the software components are updateable in a secure and timely manner. An end-of-life policy is to be published for end-point devices which states the assured duration for which a device will receive software updates.

The involvement of regulatory authorities depends on the nature of technology products; a single product or technical consumer threat may see multiple guidelines. The Advertising Standards Council of India (ASCI) notes that cryptocurrency and related products were considered as the most violative category to commit fraud. In an attempt to protect consumer safety, it introduced guidelines to regulate advertising and promotion of virtual digital assets (VDA) exchange and trading platforms and associated services as a necessary interim measure in February 2022. It mandates that all VDA ads must carry the stipulated disclaimer “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” must be made in a prominent and unmissable manner.

Further, authorities such as Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) also issue cautionary notes to consumers and investors against crypto trading and ancillary activities. Even bodies like Bureau of Indian Standards (BIS) act as a complimenting authority, since product quality, including electronic products, is emphasised by mandating compliance to prescribed standards. 

It is worth noting that ASCI has proactively responded to new-age technology-induced threats to consumers by attempting to tackle “dark patterns” through its existing Code on Misleading Ads (“Code”), since it is applicable across media to include online advertising on websites and social media handles. It was noted by ASCI that 29% of advertisements were disguised ads by influencers, which is a form of dark pattern. Although the existing Code addressed some issues, a need was felt to encompass other dark patterns.

Perhaps in response, the Central Consumer Protection Authority in November 2023 released guidelines addressing “dark patterns” under the Consumer Protection Act 2019 (“Guidelines”). The Guidelines define dark patterns as deceptive strategies and design practices that mislead users and violate consumer rights. These may include creating false urgency, scarcity or popularity of a product, basket sneaking (whereby additional services are added automatically on purchase of a product or service), confirm shaming (it refers to statements such as “I will stay unsecured” when opting out of travel insurance on booking of transportation tickets), etc. The Guidelines also cater to several data privacy considerations; for example, they stipulate a bar on encouraging consumers from divulging more personal information while making purchases due to difficult language and complex settings of their privacy policies, thereby ensuring compliance of technology product sellers and e-commerce platforms/vendors with data privacy laws in India. It is to be noted that the Guidelines are applicable on all platforms that systematically offer goods and services in India, advertisers and sellers.

Conclusion

Consumer laws for technology-based products in India play a pivotal role in safeguarding the rights and interests of individuals in an era marked by rapid technological advancements. These legislative frameworks, spanning facets such as data protection, electronic transactions, and product liability, assume a pivotal role in establishing a regulatory equilibrium that addresses the nuanced challenges of the digital age. The dynamic evolution of the digital landscape necessitates an adaptive legal infrastructure that ensures ongoing consumer safeguarding amidst technological innovations. As the digital landscape evolves, it is imperative for regulatory frameworks to adapt, ensuring that consumers are protected from potential risks associated with emerging technologies. Striking a balance between innovation and consumer safety requires ongoing collaboration between policymakers, businesses, and consumers. By staying attuned to the evolving needs of the digital age, Indian consumer laws can provide a robust foundation for security and equitable relationships between consumers and technology-based products.

References:

• https://dot.gov.in/circulars/advisory-guidelines-m2miot-stakeholders-securing-consumer-iot
• https://www.mondaq.com/india/advertising-marketing--branding/1169236/asci-releases-guidelines-to-govern-ads-for-cryptocurrency
• https://www.ascionline.in/the-asci-code/#:~:text=Chapter%20I%20(4)%20of%20the,nor%20deceived%20by%20means%20of
• https://www.ascionline.in/wp-content/uploads/2022/11/dark-patterns.pdf

Introduction

In recent times the evolution of cyber laws has picked up momentum, primarily because of new and emerging technologies. However, just as with any other law, the same is also strengthened and substantiated by judicial precedents and judgements. Recently Delhi High Court has heard a matter between Tata Sky and Linkedin, where the court has asked them to present their Chief Grievance Officer details and SoP per the intermediary guidelines 2021.

Furthermore, in another news, officials from RBI and Meity have been summoned by the Parliamentary Standing Committee in order to address the rising issues of cyber securities and cybercrimes in India. This comes on the very first day of the monsoon session of the parliament this year. As we move towards the aspects of digital India, addressing these concerns are of utmost importance to safeguard the Indian Netizen.

The Issue

Tata Sky changed its name to Tata Play last year and has since then made its advent in the OTT sector as well. As the rebranding took place, the company was very cautious of anyone using the name Tata Sky in a bad light. Tata Play found that a lot of people on Linkedin had posted their work experience in Tata Sky for multiple years, as any new recruiter cannot verify the same. This poses a misappropriation of the brand’s name. This issue was reported to Linkedin multiple times by officials of Tata Play, but no significant action was seen. This led to an issue between the two brands; hence, a matter has been filed in front of the Hon’ble Delhi High Court to address the issue. The court has taken due cognisance of the issue, and hence in accordance with the Intermediary Guidelines 2021, the court has directed Linkedlin to provide the details of their Cheif Grievance Officer in the public domain and also to share the SoP for the redressal of issues and grievances. The guidelines made it mandatory for all intermediaries to set up a dedicated office in India and appoint a Chief Grievance Officer responsible for effective and efficient redressal of the platform-related offences and grievances within the stipulated period.

The job platform has also been ordered to share the SoPs and the various requirements and safety checks for users to create profiles over Linkedin. The policy of Linkedin is focused towards the users as well as the companies existing on the platform in order to create a synergy between the two.

RBI and Meity Official at Praliament

As we go deeper into cyberspace, especially after the pandemic, we have seen an exponential rise in cybercrimes. Based on statistics, 4 out of 10 people have been victims of cybercrimes in 2022-23, and it is estimated that 70% of the population has been subjected to direct or indirect cybercrime. As per the latest statistics, 85% of Indian children have been subjected to cyberbullying in some form or the other.

The government has taken note of the rising numbers of such crimes and threats, and hence the Parliamentary Committee has summoned the officials from RBI and the Ministery of Electronics and Information Technology to the parliament on July 20, 2023, i.e. the first day of monsoon session at the parliament. This comes at a very crucial time as the Digital Personal Data Protection Bill is to be tabled in the parliament this session and this marks the revamping of the legislation and regulations in the Indian cyberspace. As emerging technologies have started to surround us it is pertinent to create legal safeguards and practices to protect the Indian Netizen at large.

Conclusion

The legal crossroads between Tata Sky and Linkedin will go a long way in establishing the mandates under the Intermediary guidelines in the form of legal precedents. The compliance with the rule of law is the most crucial aspect of any democracy. Hence the separation of power between the Legislature, Judiciary and Execution has been fundamental in safeguarding basic and fundamental rights.  Similarly, the RBI and Meity officials being summoned to the parliament shows the transparency in the system and defines the true spirit of democracy., which will contribute towards creating a safe and secured Indian Cyberspace.

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Executive Summary

A misleading  advertisement circulating in social media providing attractive offers like iPhone15, AirPods and Smartwatches from the Indian e-commerce platform ‘Myntra’. This “Myntra - Festival Gifts” scam aims to attract the unsuspecting users into a series of redirects and fake interactions to compromise their personal information and devices. It is important to stay vigilant to protect ourselves from misleading attractive offers. Through this report, the Research Wing of CyberPeace explains about a series of processes that happens when the link gets clicked. Through this knowledge, we aim to provide awareness and empower the users to guard themselves and not fall into deceptive offers that aim to scam them.   

False Claim

The widely shared WhatsApp message claims that Myntra  is offering a wide range of high-valued prizes including the latest iPhone 15, AirPods, various smartwatches among all as a Festival Gift promotion. The campaign invites the users to click on the link provided and take a short quiz to be eligible for the prize.

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The Deceptive Scheme

• The link in the social media post is tailored to work only on mobile devices, users are taken through a chain of redirects.
• Users are greeted with the Myntra's "Big Fashion Festival" branding accompanied by Myntra’s logo once they reach the landing page, which gives an impression of authenticity.
• Next, a simple quiz asks basic questions about the user's shopping experience with Myntra, their age, and gender.
• On the bottom of the quiz, there is a comment section that shows the comments from users who are supposedly provided with the prizes to look real,  
• After the completion of the quiz, users are presented with a Spin-to-Win mechanism, to win the prize. 
• After winning, a congratulatory message is displayed which says that the user has won an iPhone 15.
• The final step requires the user to share the campaign over WhatsApp in order to claim the prize.

 Analyzing the Fraudulent Campaign 

• The use of Myntra's branding and the promise of exclusive, high-value prizes are designed to attract  users' interest.
• The fake comments and social proof elements aim to create a false sense of legitimacy and widespread participation, making the offer seem more credible.
• The series of redirects, quizzes, and Spin-to-Win mechanics are tactics to keep users engaged and increase the likelihood of them falling for the scam.
• The final step of sharing the post on WhatsApp is a way for the scammers to further spread the campaign and compromise more victims. Through sharing the link over WhatsApp, users become unaware accomplices that are simply assisting the scammers to reach an even bigger audience and hence their popularity.

• The primary objectives of such scams are to gather users' personal information and potentially gain access to their devices. By luring users with the promise of exclusive gifts and creating a false sense of legitimacy, the scammers aim to exploit user trust and compromise their data, leading to potential identity theft, financial fraud, or the installation of potentially unwanted softwares.
• We have also cross-checked and as of now there is no well established and credible source or any official notification that has confirmed such an offer advertised by Myntra.
• Domain Analysis: If we closely look at the viral message, it is clearly visible that the scammers mentioned myntra.com in the url. However, the actual url takes the user to a different domain as the campaign is hosted on a third party domain instead of the official Website of Myntra, this raised suspicion. This is the common way to deceive users into falling for a Phishing scam. Whois information reveals that the domain has been registered not long ago i.e on 8th April 2024, just a few days back. Cybercriminals used Cloudflare technology to mask the actual IP address of the fraudulent website.

• Domain Name: MYTNRA.CYOU
• Registry Domain ID: D445770144-CNIC
• Registrar WHOIS Server: whois.hkdns.hk
• Registrar URL: http://www.hkdns.hk
• Updated Date: 2024-04-08T03:27:58.0Z
• Creation Date: 2024-04-08T02:58:14.0Z
• Registry Expiry Date: 2025-04-08T23:59:59.0Z
• Registrar: West263 International Limited
• Registrant State/Province: Delhi
• Registrant Country: IN
• Name Server: NORMAN.NS.CLOUDFLARE.COM
• Name Server: PAM.NS.CLOUDFLARE.COM

‍CyberPeace Advisory and Best Practices‍

• Do not open those messages received from social platforms in which you think that such messages are suspicious or unsolicited. In the beginning, your own discretion can become your best weapon.
• Falling prey to such scams could compromise your entire system, potentially granting unauthorized access to your microphone, camera, text messages, contacts, pictures, videos, banking applications, and more. Keep your cyber world safe against any attacks.
• Never, in any case, reveal such sensitive data as your login credentials and banking details to entities you haven't validated as reliable ones.
• Before sharing any content or clicking on links within messages, always verify the legitimacy of the source. Protect not only yourself but also those in your digital circle.
• For the sake of the truthfulness of offers and messages, find the official sources and companies directly. Verify the authenticity of alluring offers before taking any action.

Conclusion:

The “Myntra - Festival Gift” scam is a kind of manipulation in which the fraudsters exploit the trust of the users and take advantage of a popular e-commerce website. It is equally crucial to equip the users by imparting them knowledge on fraudulent behavior tactics like impersonating brands, creating fake social proof and application of different engagement strategies. We are required to remain alert and stand firm against cyber attacks. Be careful, make sure that information is verified and share awareness to help make a safe online environment for all users.

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