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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

Digital Public Infrastructure (DPI) serves as the backbone of e-governance, enabling governments to deliver services more efficiently, transparently, and inclusively. By leveraging information and communication technology (ICT), digital governance systems reconfigure traditional administrative processes, making them more accessible and citizen-centric. However, the successful implementation of such systems hinges on overcoming several challenges, from ensuring data security to fostering digital literacy and addressing infrastructural gaps.

This article delves into the key enablers that drive effective DPI and outlines the measures already undertaken by the government to enhance its functionality. Furthermore, it outlines strategies for their enhancement, emphasizing the need for a collaborative, secure, and adaptive approach to building robust e-governance systems.

Key Enablers of DPI

Digital Public Infrastructure (DPI), the foundation for e-governance,  relies on common design, robust governance, and private sector participation for efficiency and inclusivity. This requires common principles, frameworks for collaboration, capacity building, and the development of common standards. Some of the key measures undertaken by the government in this regard include: 

1. Data Protection Framework: The Digital Personal Data Protection (DPDP) Act of 2023 establishes a framework to ensure consent-based data sharing and regulate the processing of digital personal data. It delineates the responsibilities of data fiduciaries in safeguarding users' digital personal data.
2. Increasing Public-Private Partnerships: Refining collaboration between the government and the private sector has accelerated the development, maintenance, expansion, and trust of the infrastructure of DPIs, such as the AADHAR, UPI, and  Data Empowerment and Protection Architecture (DEPA). For example, the Asian Development Bank attributes the success of UPI to its “consortium ownership structure”, which enables the wide participation of major financial stakeholders in the country.
3. Coordinated Planning: The PM-Gati Shakti establishes a clear coordination framework involving various inter-governmental stakeholders at the state and union levels. This aims to significantly reduce project duplications, delays, and cost escalations by streamlining communication, harmonizing project appraisal and approval processes, and providing a comprehensive database of major infrastructure projects in the country. This database called the National Master Plan, is jointly accessible by various government stakeholders through APIs.
4. Capacity Building for Government Employees:  The National e-Governance Division of the Ministry of Electronics and Information Technology routinely rolls out multiple training programs to build the technological and managerial skills required by government employees to manage Digital Public Goods (DPGs). For instance, it recently held a program on “Managing Large Digital Transformative Projects”. Additionally, the Ministry of Personnel, Public Grievances, and Pensions has launched the Integrated Government Online Training platform  (iGOT) Karmayogi for the continuous learning of civil servants across various domains. 

Digital Governance; Way Forward

E-governance utilizes information and communication technology (ICT) such as Wide Area Networks, the Internet, and mobile computing to implement existing government activities, reconfiguring the structures and processes of governance systems. This warrants addressing certain inter-related challenges such as : 

1. Data Security: The dynamic and ever-changing landscape of cyber threats necessitates regular advancements in data and information security technologies, policy frameworks, and legal provisions. Consequently, the digital public ecosystem must incorporate robust data cybersecurity measures, advanced encryption technologies, and stringent privacy compliance standards to safeguard against data breaches.
2. Creating Feedback Loops: Regular feedback surveys will help government agencies improve the quality, efficiency, and accessibility of digital governance services by tailoring them to be more user-friendly and enhancing administrative design. This is necessary to build trust in government services and improve their uptake among beneficiaries. Conducting the decennial census is essential to gather updated data that can serve as a foundation for more informed and effective decision-making.
3. Capacity Building for End-Users: The beneficiaries of key e-governance projects like Aadhar and UPI may have inadequate technological skills, especially in regions with weak internet network infrastructure like hilly or rural areas. This can present challenges in the access to and usage of technological solutions.  Robust capacity-building campaigns for beneficiaries can provide an impetus to the digital inclusion efforts of the government.
4. Increasing the Availability of Real-Time Data: By prioritizing the availability of up-to-date information, governments and third-party enterprises can enable quick and informed decision-making.  They can effectively track service usage, assess quality, and monitor key metrics by leveraging real-time data. This approach is essential for enhancing operational efficiency and delivering improved user experience.
5. Resistance to Change: Any resistance among beneficiaries or government employees to adopt digital governance goods may stem from a limited understanding of digital processes and a lack of experience with transitioning from legacy systems.  Hand-holding employees during the transitionary phase can help create more trust in the process and strengthen the new systems. 

Conclusion

Digital governance is crucial to transforming public services, ensuring transparency, and fostering inclusivity in a rapidly digitizing world. The successful implementation of such projects requires addressing challenges like data security, skill gaps, infrastructural limitations, feedback mechanisms, and resistance to change. Addressing these challenges with a strategic, multi-stakeholder approach can ensure the successful execution and long-term impact of large digital governance projects. By adopting robust cybersecurity frameworks, fostering public-private partnerships, and emphasizing capacity building, governments can create efficient and resilient systems that are user-centric, secure, and accessible to all. 

References

• https://www.adb.org/sites/default/files/publication/865106/adbi-wp1363.pdf 
• https://www.jotform.com/blog/government-digital-transformation-challenges/ 
• https://aapti.in/wp-content/uploads/2024/06/AaptixONI-DPIGovernancePlaybook_compressed.pdf 
• https://community.nasscom.in/sites/default/files/publicreport/Digital%20Public%20Infrastructure%2022-2-2024_compressed.pdf 
• https://proteantech.in/articles/Decoding-Digital-Public-Infrastructure-in-India/ 

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Introduction

On September 27, 2024, the Indian government took a significant step toward enhancing national security by amending business allocation rules through an extraordinary gazette notification. This amendment, which assigns specific roles to different Union Ministries and Departments regarding telecom network security, cybersecurity, and cybercrime, aims to clarify and streamline efforts in these critical areas. With India's evolving cybersecurity landscape, the need for a structured regulatory framework is pressing, as threats grow in complexity. Recent developments, such as the July 2024 global cyber outage and increasing cyber crimes like SMS scams, highlight the urgency of such reforms. Under Article 77 clause (3), the President amended the Government of India (Allocation of Business) Rules, 1961, to designate clearer responsibilities, reinforcing India's readiness to tackle emerging digital threats.

Key Highlights of the Gazette Notification

• Telecom Networks Security: A new entry ‘1A’ matters relating to the security of telecom networks" has been added under the Department of Telecommunications, highlighting an increased focus on securing the nation's telecom infrastructure.
• Cyber Security Responsibilities: Cyber security responsibilities have been added as a new entry under the Ministry of Electronics and Information Technology (MeitY), "5B. This assigns responsibility to MeitY for cybersecurity issues, concerning the Information Technology Act of 2000, giving the ministry the mandate to support other ministries or departments regarding cybersecurity matters.
• Oversight for Cyber Crime: Under the Ministry of Home Affairs, Department of Internal Security, a new entry "36A Matters relating to Cyber Crime" is introduced. This emphasises that the MHA will handle cybercrime issues, highlighting the government's attention toward enhancing internal security against cyber threats.
• Cyber Security Strategic Coordination: Any matter related to the "overall coordination and strategic direction for Cyber Security," has been given to the National Security Council Secretariat (NSCS). This consolidates the role of the NSCS in guiding cybersecurity strategies at the national level.

Impact on Policy and Governance 

The amendments introduced through the notification are poised to significantly enhance the Indian government's cybersecurity framework by clarifying the roles of various ministries. The clear separation of responsibilities, telecom network security to the Department of Telecommunications, cybercrime to the Ministry of Home Affairs, and overall cyber strategy to the National Security Council Secretariat could seen as better coordination between ministries. This clarity is expected to reduce bureaucratic delays, allowing for quicker response times in addressing cyber threats, cybercrimes, and telecom vulnerabilities. Such efficient handling is crucial, especially in the evolving landscape of digital threats. These changes have been largely welcomed as it recognises the potential for improved regulatory oversight and faster policy implementation and a step forward in bolstering India’s cyber resilience. 

Conclusion 

The Government of India (Allocation of Business) Rules, 1961 amendments mark a critical step in strengthening India's cybersecurity framework. By setting out specific responsibilities for telecom network security, cybercrime, and overall cybersecurity strategy among key ministries, the government seeks to improve coordination and reduce bureaucratic delays. This policy shift is poised to enhance India’s digital resilience, providing a foundation for rapid responses to emerging cyber threats. However, success hinges on effective implementation, resource allocation, and collaboration across ministries. Addressing concerns like potential jurisdictional overlap and ensuring the inclusion of bodies like NCIIPC will be pivotal to ensuring comprehensive cyber protection. The complexity of cyber crimes and threats is evolving every day and the government's ability and preparedness to handle them with regulatory insight is a high priority.

References

• https://egazette.gov.in/(S(4r5oclueuwrjypfvr5b4vtzg))/ViewPDF.aspx 
• https://www.ptinews.com/story/national/govt-specifies-roles-on-matters-related-to-security-of-telecom-network-cyber-security-and-cyber-crime/1856627
• https://www.thehindubusinessline.com/economy/centre-to-further-streamline-mechanism-to-deal-with-cyber-security-cyber-crime/article68694330.ece
• https://telecom.economictimes.indiatimes.com/news/policy/govt-specifies-roles-on-matters-related-to-security-of-telecom-network-cyber-security-and-cyber-crime/113754501 

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