ASCI to Ascertain Legality of Opinion Trading Ads

 Chennai: The Advertising Standards Council of India (ASCI) has called for a regulatory clarity on opinion trading, in which platforms allow individuals to predict the outcome of future events related to current affairs, sports, stocks, weather and politics. ASCI will ascertain the legality of advertisements related to opinion trading.

As per the National Initiative for Consumer Interest (NICI), these platforms have over 50 million users and transactions exceeding Rs 50,000 crore annually. Opinion platforms engage users to make monetary bets on binary (yes/no) outcomes of real-world events.

“There's a lack of clarity regarding the legal status and definition of opinion trading in India today, and therefore, the regulations surrounding its advertising are also ambiguous. The Indian courts are currently examining the legitimacy of opinion trading,” ASCI said.

ASCI plans to escalate all such advertisements that it comes across to the regulators, for them to decide upon the legality of such advertisements. Should the regulator or courts clarify that such advertisements are legally permitted, it is important to maintain the warnings and disclaimers that are required for real money gaming. These are absent in the advertisements that ASCI has come across in its monitoring effort.

“Opinion trading platforms raise serious concerns as their structure and mechanics closely resemble betting in some instances, and can expose consumers to significant financial risk. The advertising that accompanies these platforms often heightens the risk, with exaggerated claims of easy winnings and false assurances of reliability. No disclaimers cautioning consumers are provided. ASCI urges for urgent regulatory clarity so that appropriate steps can be taken to protect consumers from potential harm,” said Manisha Kapoor, CEO & Secretary General of ASCI.