Are OTT content platforms regulated under e-commerce or media laws?

Over-the-Top (OTT) content platforms, such as Netflix, Amazon Prime, Hotstar, and others, have become a significant part of India's digital entertainment landscape. However, these platforms face a unique regulatory challenge in India due to the intersection of e-commerce and media laws. While they provide on-demand streaming services similar to e-commerce, their content and censorship issues make them subject to specific media regulation. Let’s examine how OTT platforms are governed by Indian laws, including the E-commerce rules, media laws, and other relevant regulations.

Legal Framework for OTT Platforms in India

• E-Commerce (Consumer Protection) Rules, 2020

The E-Commerce (Consumer Protection) Rules, 2020, were introduced to regulate online platforms providing goods and services, and they partly cover OTT services. These rules ensure that consumers have clear access to information about the platforms' operations and help protect consumer rights. However, OTT platforms that primarily offer content may not be fully regulated under the E-commerce rules, as their focus is on content distribution rather than goods and services.

• Consumer Protection: OTT platforms must follow the basic consumer protection provisions like providing accurate refund or cancellation policies for subscription-based models, as well as ensuring that content is accurately described to consumers.
• Data Privacy: Data protection laws apply, and OTT platforms must ensure consumer data privacy is maintained in compliance with PDPB (Personal Data Protection Bill) and other Indian data protection laws.

• Media Laws and Content Regulation

Unlike e-commerce platforms, OTT platforms are primarily governed by media laws, especially when it comes to the type of content they distribute:

• Ministry of Information and Broadcasting (MIB): Although OTT platforms are not regulated as television broadcasters, they are still under the purview of the Ministry of Information and Broadcasting (MIB). The MIB can issue guidelines on content censorship, advertisements, and rating systems.
• Cable Television Networks (Regulation) Act, 1995: While OTT platforms are not directly governed by this law, it is worth noting that the MIB uses powers from similar legislation to guide OTT content regulation.
• Content Classification and Rating: OTT platforms must classify their content according to age ratings and implement content filters, particularly for adult content. The Broadcasting Content Complaints Council (BCCC) and the Indian Broadcasting Foundation (IBF) play a role in setting these standards.

• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

The Intermediary Guidelines and Digital Media Ethics Code apply to both social media and OTT platforms. Key provisions include:

• Content Oversight: OTT platforms must have a self-regulatory mechanism for content, including an ombudsman for handling consumer complaints.
• Code of Ethics: The rules require platforms to adhere to ethics codes related to content, such as prohibition of illegal content and protection of minors.
• Grievance Redressal: Platforms must establish a grievance redressal mechanism and address complaints within a specified time frame.

• Censorship and Adult Content Guidelines

OTT platforms must adhere to guidelines about the display of adult content, violent imagery, and material that could be considered offensive or harmful. These guidelines are issued by both the Ministry of Information and Broadcasting (MIB) and through self-regulatory bodies like the Digital Content Complaint Council (DCCC).

• Self-Regulation: OTT platforms like Netflix and Amazon Prime typically follow their own self-regulation guidelines for content classification and age ratings (e.g., U/A, A, S for adult content).
• Government Regulation: The government has also proposed stricter guidelines for regulating adult content, including mandatory age verification and restrictions on the type of content that can be shown to minors.

• GST (Goods and Services Tax)

OTT platforms that charge users for subscriptions or advertisements must comply with GST laws. They are required to:

• Collect GST: on subscription fees and advertising revenues from Indian consumers.
• GST Registration: OTT platforms operating in India must register under GST laws and remit tax on income generated in India.

Enforcement and Penalties

• Penalties for Non-Compliance with Content Regulations

If an OTT platform is found to be violating content regulations, including broadcasting unapproved or offensive material, it can face:

• Warnings or content bans by the Ministry of Information and Broadcasting (MIB).
• Fines for non-compliance with content censorship laws.
• Temporary suspension of their content or services in India, depending on the severity of the violation.

• Penalties for Data Privacy Violations

OTT platforms that do not comply with data protection laws could face penalties under the Personal Data Protection Bill (PDPB) once enacted. This could include:

• Fines for mishandling user data.
• Compensation to consumers for data privacy violations.

• Regulation of Advertising and Marketing

OTT platforms must adhere to advertising regulations set forth by bodies like the Advertising Standards Council of India (ASCI). They also must ensure that their advertisements are truthful, non-deceptive, and compliant with guidelines for advertising to minors or advertising alcohol and tobacco.

Example Scenario of OTT Platform Regulation

Suppose a popular OTT platform in India releases a show that contains explicit adult content that is not properly age-rated.

Steps the platform could face:

• Investigation by MIB: The Ministry of Information and Broadcasting (MIB) could investigate the content to determine if it violates guidelines related to content classification.
• Public Complaints: If there are complaints from consumers regarding the inappropriate nature of the content, the platform may be required to remove or edit the content.
• Fines or Suspension: In cases of repeated violations, the platform could face fines, suspension of content, or regulatory action by the Ministry.

Conclusion

OTT content platforms in India are primarily regulated under media laws rather than e-commerce laws. These platforms are subject to guidelines issued by the Ministry of Information and Broadcasting (MIB), the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and self-regulatory mechanisms for content classification. They must comply with GST laws for subscription and advertising revenue, as well as data protection regulations. Failure to comply with these laws can result in penalties, suspension of content, and other legal actions to protect consumer rights and ensure content quality.