Central Consumer Protection Authority issues advisory to refrain from advertising betting and gambling businesses

On March 6, 2024, the Central Consumer Protection Authority (“CCPA”) issued an advisory (“Advisory”) pertaining to advertisements that promote illegal activities such as betting and gambling. The Advisory has been issued in light of the increasing number of advertisements which promote illegal activities by manufacturers, advertisers, publishers, intermediaries, social media platforms, celebrities, influencers and any other relevant stakeholders. Gambling and betting have been prohibited under the Public Gambling Act of 1867 and several other state gaming laws in India. Despite such prohibitions, we have witnessed an increased number of advertisements that are promoting online betting and gambling.

It has been highlighted in the Advisory that various celebrities as well as the influencers are being engaged for the purpose of endorsing/promoting betting and gambling activities which is giving a false impression that indulging in such illegal activities can be considered acceptable by the Indian public. In this regard, the Advisory states that “celebrities and influencers are advised to refrain from endorsing and promoting illegal betting and gambling activities”.

The Advisory also refers to Clause 9 of the Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 (“Guidelines”) The provision provides that, “In addition to the prohibited advertisements as set out in these guidelines, no advertisement shall be permitted which is designed, produced and published in respect of goods, products or services which are prohibited from being produced, sold or provided or which are prohibited from being advertised under any law for the time being in force or under any rules or regulations made thereunder”. Since gambling and betting is prohibited under Central and various State statutes, the advisory places reliance on Section 9 to convey that advertisements in respect of such betting/gambling platforms are also not allowed.

The CCPA has warned the stakeholders to refrain from advertising any such activities that are prohibited by law (which includes betting or gambling). The Advisory further states that in case of violation of Guidelines, the relevant provisions of the Consumer Protection Act, 2019 will be invoked against the stakeholders.