The Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food and Public Distribution (DoCA), issued the draft Guidelines for the Prevention and Regulation of Unsolicited and Unwarranted Business Communication, 2024 (Draft Guidelines).
The Draft Guidelines have been developed in collaboration with the Telecom Regulatory Authority of India (TRAI), and telecom service providers. It is designed to work in conjunction with the Telecom Commercial Communications Customer Preference Regulations 2018 (TCCCPR). Importantly it also applies to unsolicited or unwarranted communications made not only through telecom resources but also social media platforms or apps. It aims to ensure that business communications whether promotional or related to transactions/services would need to be done through proper and legitimate channels with clear consent of the recipient.
Below are the key highlights:
Applicability of the Draft Guidelines: The Draft Guidelines shall be applicable to all ‘persons or establishments’. This effectively covers all entities involved in business communication and marketing chain. The Draft Guidelines specifically include the person or entity making the communication (Maker), the one engaging the Maker, the intended beneficiary and the person/entity in whose name the communication is made by the Maker.
Prohibited Practices: The Draft Guidelines prohibit engaging in any unsolicited or unwarranted business communication. “Unsolicited and unwarranted Business Communication” refers to any communication that advertises or markets goods and services that the recipient did not consent to or register their preference for. The definition is in line with the provisions under the Telecom Commercial Communications Customer Preference Regulations 2018 (TCCPR) that prohibits any commercial communication in absence of consent and registration of preference to telecom companies.
It further prescribes instances that would be considered unsolicited and unwarranted business communication. Such instance includes business communication that:
- is made through number series not prescribed by the TRAI/DoT or unregistered SMS headers;
- ignores consumer requests to opt out of any such communication;
- lacks explicit consent from consumers through DCA (Digital Consent Acquisition) as prescribed under the TCCPR;
- fails to clearly identify the calling entity and the purpose of the call;
- is made through unauthorized employees or agents;
- does not provide a clear and effective opt-out mechanism;
- is in violation of TCCPR Regulation and Directions issued thereunder, or any other directions issued under any other law.
Additionally, it clarifies that clause (a) to (g) applies to unsolicited or unwarranted business communication made through telecom resources or through social media platform and its applications except clause (a) and (b) which shall not be applicable to business communication made through social media platform and its applications
Consistency with other laws: Moreover, these guidelines are in addition to any other laws regulating unsolicited business communication and do not supersede them. Currently, TCCCPR Regulation issued by the TRAI also provides measures and compliances to prevent unsolicited commercial communications.
Penalty: Any violation of these guidelines will be subject to the penalties prescribed under the Consumer Protection Act, 2019.
Comments and inputs to the Draft Guidelines may be sent latest by 21st July 2024. The Draft Guidelines once finalised after the consultation will be issued under the authority granted by the Consumer Protection Act, 2019 and shall come into force upon their publication by the Central Consumer Protection Authority.