The Ministry of Electronics and Information Technology notified amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules).12,13 The IT Rules were notified under the Information Technology Act, 2000 (IT Act). 14 The amendments regulate false information and online gaming.
Key features include:
▪ False information: The IT Act provides intermediaries with exemption from liability for third-party content (safe harbour) if they comply with certain requirements. The 2021 Rules delineate such requirements. The Amendments add that any information about the central government’s business may be identified as fake, false or misleading by the fact check unit of the central government. For intermediaries to avail safe harbour, this information must be removed. The factcheck unit will be notified by the Ministry. Following a petition in the Bombay High Court, the government has undertaken that it will not notify the fact check unit until July 5, 2023.15
▪ Online gaming: The Bill defines that online real money games are those where users deposit money (cash or kind) with the expectation of winning it back. Such games are permissible if they are verified by a gaming self-regulatory body. A selfregulatory body must be designated by the Ministry and its membership must be representative of the gaming industry. Criteria for verifying such games includes not wagering on an outcome and having appropriate age restrictions.
▪ Requirements by gaming intermediaries: Intermediaries that enable access to online games are also required to comply with certain requirements to avail safe harbour. Such intermediaries that provide permissible real money games are additionally required to: (i) display a verification mark received by the regulatory body, (ii) inform users of withdrawal and refund policy and KYC procedure for identity verification. The Amendments empower the central government to require any online gaming intermediary to observe additional due diligence obligations.
▪ Surrogate advertisement: To avail safe harbour, intermediaries are required to remove advertisements/surrogate advertisements of: (i) online games that are not permissible, or (ii) intermediaries that offer such games. Draft amendments to the Rules were introduced in January 2023.
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