The Confederation of All India Traders (CAIT) has formally appealed to the Indian government, urging a ban on opinion trading apps and websites. In a letter addressed to Ashwini Vaishnaw, Minister of Electronics and Information Technology, and Piyush Goyal, Minister of Commerce and Industry, CAIT emphasized the potential risks posed by these platforms, calling them a form of “digital satta” (online gambling).
The letter, written by CAIT’s National President, B.C. Bhartia (a copy of which is with Storyboard18), highlights the rapid growth of opinion trading platforms, which have attracted over 50 million users in India. According to the letter, these platforms facilitate transactions exceeding ₹50,000 crores annually, with projected revenues of ₹1,000 crores for the 2024-25 financial year. However, Bhartia warned that advertisements promoting these platforms are deceptive and unlawful, misleading consumers into believing they are engaging in skill-based activities rather than high-risk financial betting.
Bhartia asserted that opinion trading companies are engaging in influencer-endorsed misrepresentation, falsely portraying their services as games of skill. He argued that such misleading advertisements create a false sense of security among users, encouraging them to participate in high-risk financial activities without fully understanding the consequences. The letter further pointed out that these deceptive practices disproportionately affect young, digitally active individuals, many of whom lack the experience or knowledge to assess the inherent dangers of unregulated financial activities.
CAIT also raised serious concerns about the potential impact of these platforms on India’s democratic processes. The letter stated that prediction-based opinion trading platforms allow users to bet on election outcomes, thereby posing a threat to electoral democracy. Given the scale of these platforms, CAIT warned that they could influence public opinion and undermine the integrity of democratic institutions.
To counter these risks, CAIT urged the government to take stringent action against opinion trading platforms. The letter proposed:
Directing all intermediaries, including social media platforms, app stores, and cloud service providers, to remove any content related to prediction-based platforms.
Enforcing Section 79(3)(b) of the Information Technology Act, 2000, to prohibit the hosting, displaying, uploading, publishing, transmitting, or sharing of any material related to opinion trading platforms.
The letter also referenced global regulatory practices and India’s previous actions against misleading digital advertising. It cited the country’s strong stance against false claims in virtual digital asset promotions as an example of effective intervention. CAIT suggested that a similar approach, customized for opinion trading, could protect consumers and ensure ethical digital marketplaces.
Additionally, Bhartia urged the Ministry of Electronics and Information Technology to collaborate with the Ministry of Home Affairs and the Ministry of Consumer Affairs to ensure legal action is taken against opinion trading platforms and their promoters. By involving multiple regulatory bodies, CAIT hopes to create a more comprehensive framework to safeguard consumers from financial risks and protect the country’s democratic integrity.