The New Indian Consumer Initiative (NICI) and a group of prominent consumer interest organisations have urged the Indian government to ban opinion trading platforms, which they argue mislead consumers through deceptive advertising and expose them to serious financial and psychological risks.

In a joint representation submitted on 26 February 2025, the coalition addressed several government bodies, including the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, Ministry of Electronics & Information Technology, the Securities and Exchange Board of India (SEBI), the Advertising Standards Council of India (ASCI), and the Parliamentary Standing Committee on Consumer Affairs.

The representation argues that these opinion trading platforms operate as pure betting services, falsely presenting themselves as investment opportunities. It warns that consumers are being lured into illegal and unauthorised activities, risking their savings and well-being.

The signatories include Ramjibai Mavani, former member of parliament and founder of Rajkot Jilla Grahak Suraksha Mandal, and Prof Dr Duraisingam, chairman, Consumer Research, Education, Action, Training & Empowerment (CREATE), Poonam Sharma, president of Rashtriya Samuddeshya Vikas Sansthan; Rakesh Parmar, president, Samajik Vikas Sansthan (Dholpur); and Rijit Sengupta, CEO, Centre for Responsible Business. 

They stress the danger posed by misleading advertisements, which position these platforms as legitimate investment tools.

Opinion trading platforms allow users to wager money on the outcomes of real-world events, mimicking financial markets but ultimately functioning as gambling services.

Despite presenting themselves as skill-based games or investment platforms, their reliance on binary outcomes makes them largely chance-based. With an annual trading volume exceeding USD 50,000 crore and over five crore Indian users, the scale of potential consumer harm is significant.

A major concern highlighted is the misleading nature of advertisements used by these platforms. Many use financial terminology like 'auto profits' and 'stop loss' to create an illusion of structured investment opportunities. Influencer promotions further add to this perception, often suggesting risk-free earnings. These claims likely violate ASCI and Central Consumer Protection Authority (CCPA) guidelines on misleading promotions.

Beyond financial losses, the psychological impact of these platforms can be severe. Users may experience stress, compulsive behaviour, and the normalisation of gambling culture, particularly affecting economically vulnerable groups.

With several countries already enforcing strict regulations on opinion trading, the coalition urges the Indian government to act swiftly to safeguard consumer rights, including the right to accurate information, education, and protection from harmful practices.

Abhishek Kumar, convenor of NICI, called for decisive government action. He said, “Through this joint representation, we urge the government to prohibit opinion trading in India and take immediate steps to protect consumers. This includes banning digital and social media advertisements and blocking app stores, cloud service providers, and payment gateways from supporting these platforms. We also call on the Central Consumer Protection Authorities to investigate misleading claims and for law enforcement agencies to freeze assets linked to these companies.”