Industry Information Update

The Central Consumer Protection Authority (CCPA) has issued the “Guidelines for the Prevention and Regulation of Unsolicited and Unwarranted Business Communication, 2024” to protect consumers from unfair trade practices and violations of their rights through unsolicited business communications.

These guidelines apply to all entities involved in making, engaging, or benefiting from such communications and outline specific conditions under which business communications are considered unsolicited and unwarranted.

Key Takeaways

  1. Scope and Applicability
    The guidelines apply to all persons or establishments involved in making, engaging, or benefiting from business communications.
    Business communications include voice calls, SMS, and instant messaging through social media platforms.
  2. Definitions
    “Business Communication” refers to communication related to goods or services, excluding personal communication.
    “Unsolicited and Unwarranted Business Communication” is defined as any communication for sale or promotion of goods and services that is neither as per the consent nor the registered preferences of the recipient.
  3. Conditions for Violation
    Using number series or SMS headers not prescribed by the Telecom Regulatory Authority of India (TRAI) or the Department of Telecommunications (DoT).
    Ignoring consumer requests to opt-out of communications registered in the Do Not Disturb (DND) registry.
    Failing to obtain explicit and specific digital consent from consumers.
    Not clearly identifying the calling entity and the purpose of the call.
    Using unauthorized employees or agents for making calls.
    Not providing a clear, simple, free, and effective opt-out option for consumers.
  4. Illustrations
    Examples provided clarify scenarios where multiple entities (e.g., banks, fintech companies, intermediaries) are involved in unsolicited communications and how the guidelines apply to each.
  5. Non-Derogation Clause
    The guidelines are in addition to, and not in derogation of, other existing laws regulating unsolicited communications.
  6. Penalties
    Any contravention of these guidelines will be subject to the provisions of the Consumer Protection Act, 2019.
  7. Final Authority
    In case of any ambiguity or dispute in interpretation, the decision of the CCPA will be final.
  8. Public Feedback
    The CCPA has sought public comments on the draft guidelines, with the last date for submission being July 21, 2024 by email to js-ca@nic.in

These guidelines aim to curb the proliferation of spam and fraudulent calls, ensuring that consumers are not subjected to invasive and unauthorized marketing communications.

Source: https://consumeraffairs.nic.in/