Govt and Meta Collaborate on Digital Literacy and AI-Powered Consumer Protection

Speaking at the launch event, Shri Pralhad Joshi emphasized the importance of equipping Indian consumers with the necessary knowledge and tools to navigate the rapidly evolving digital landscape safely.

In a landmark initiative aimed at strengthening consumer rights and protection in India, the Union Minister for the Ministry of Consumer Affairs, Food and Public Distribution, and the Ministry for New and Renewable Energy, Shri Pralhad Joshi, along with Mr. Joel Kaplan, Chief Global Affairs Officer at Meta, announced a strategic partnership titled ‘Be an Empowered Consumer.’ This collaboration aims to enhance digital literacy and consumer protection under the government’s flagship consumer awareness program, ‘Jago Grahak Jago.’

A Transformative Initiative for Consumer Protection

Speaking at the launch event, Shri Pralhad Joshi emphasized the importance of equipping Indian consumers with the necessary knowledge and tools to navigate the rapidly evolving digital landscape safely. “We are pleased to partner with Meta on this crucial initiative to equip citizens with the knowledge and tools that will enable them to navigate the digital landscape and protect themselves online,” he stated.

With the increasing reliance on digital transactions and online platforms for everyday activities, the ‘Be an Empowered Consumer’ campaign seeks to educate individuals on recognizing online threats, promoting safe internet practices, and fostering awareness about unethical business practices. The campaign will focus on key aspects such as strong password management, recognizing misinformation, and reporting suspicious online activities to relevant authorities.

Expanding Consumer Awareness Nationwide

One of the major highlights of the initiative is its commitment to reaching remote areas of India. By leveraging Meta’s technological expertise and the outreach capabilities of the Department of Consumer Affairs (DoCA), the program will ensure that consumer rights awareness and digital safety education penetrate the most underserved regions. This step aligns with the government’s broader vision of digital inclusivity and consumer empowerment.

Leveraging AI for Consumer Protection: GrahakNyay Chatbot

During the meeting preceding the launch, officials also discussed a pioneering AI-driven project supported by Meta and spearheaded by IIT Bombay and the National Law School of India University, Bangalore. The project involves the development of ‘GrahakNyay,’ an AI-powered chatbot designed to provide real-time assistance to consumers regarding their rights, grievance redressal, and online safety concerns.

Built on Meta’s open-source large language model, Llama 2, the chatbot will serve as a consumer-centric digital assistant, enabling users to efficiently file complaints, seek redressal for grievances, and access essential consumer protection information. GrahakNyay is currently undergoing a closed group beta testing phase and will soon be integrated into DoCA’s website for broader public access.

Government's Commitment to Consumer Rights Protection

Smt. Nidhi Khare, Secretary of the Department of Consumer Affairs, reiterated the government’s dedication to upholding consumer rights and ensuring a fair and transparent digital ecosystem. She highlighted that consumer awareness is pivotal in safeguarding individuals from online fraud, misleading advertisements, and unethical trade practices. “Having the right to have their grievances heard and addressed is essential for fostering accountability, transparency, and fairness. The chatbot will facilitate seamless complaint filing and efficient resolution of queries,” she stated.

Meta’s Role in Digital Consumer Awareness

Meta’s Chief Global Affairs Officer, Mr. Joel Kaplan, underscored the company’s commitment to supporting India’s consumer protection efforts through technology and AI-driven solutions. “With technology progressing so quickly, it can be hard for people to stay up to date with the best ways to keep themselves safe online. At Meta, we think AI can help people protect themselves and be informed online consumers. By making AI more accessible, we hope to improve consumer awareness, streamline redressal processes, and equip people with the knowledge they need to make informed choices online,” he remarked.

Strengthening Legislative and Technological Frameworks

The initiatives launched are part of the Department’s broader strategy to enhance consumer protection through legislative and technological advancements. The government has implemented several regulatory measures, including:

1. Central Consumer Protection Authority (CCPA): Established under Section 10 of the Consumer Protection Act, 2019, the CCPA has the mandate to investigate consumer complaints, prevent unfair trade practices, and penalize entities involved in false or misleading advertisements.
2. Consumer Protection (E-commerce) Rules, 2020: Designed to hold e-commerce platforms accountable, ensuring transparency in online transactions and safeguarding consumer interests.
3. Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022: Aimed at curbing deceptive advertisements and protecting consumers from misleading promotions.
4. Regulations Against Unethical Business Practices: The government has also issued advisories against the illegal sale of products such as wireless jammers, prescription drugs, and car seat belt alarm stoppers.
5. Recent Consumer Protection Guidelines (2023-2024):
   • Prevention of Dark Patterns (2023): Guidelines to counter manipulative online practices that deceive consumers.
   • Regulation of Greenwashing (2024): Ensuring brands do not falsely claim environmental benefits.
   • Prevention of Misleading Advertisements in Coaching Sector (2024): Addressing deceptive marketing practices in the education sector.

Penalties and Enforcement Mechanisms

To further deter companies from engaging in unfair trade practices, the CCPA has the authority under Sections 18 and 19 of the Consumer Protection Act, 2019, to investigate violations and impose penalties of up to ₹50 lakh. The authority can also issue safety notices and necessary directives to protect consumer interests.

A Future-Ready Consumer Protection Ecosystem

The dual approach of integrating AI-based consumer grievance redressal mechanisms through the GrahakNyay chatbot and fostering digital literacy via the ‘Be an Empowered Consumer’ campaign represents a significant step towards creating a safer and more transparent digital marketplace in India.

By leveraging advanced AI solutions and partnering with technology giants like Meta, the Indian government is making a concerted effort to tackle emerging consumer vulnerabilities in an increasingly digital economy. This initiative is expected to significantly enhance consumer rights awareness, protect individuals from online fraud, and streamline grievance redressal processes.

As these initiatives gain momentum, they promise to make a lasting impact on the digital consumer protection landscape in India, ensuring that consumers are well-informed, empowered, and adequately protected in an ever-evolving marketplace.