In a new development, the Central Consumer Protection Authority (CCPA) has sent notices to gaming company Lotus 365 and three celebrities, including Nawazuddin Siddiqui and Urvashi Rautela, for endorsing the company’s “misleading” advertisement. The CCPA has reportedly asked for a response from the firm and the celebrities before taking further action.
Lotus 365, which was among the 138 Chinese-affiliated betting sites banned by the government, has been giving advertisements in newspapers claiming to be “India’s most trusted sports exchange since 2015.” This has sparked a new controversy over the legitimacy of online gaming and betting sites in India.
The CCPA took suo moto cognizance of the advertisement published in newspapers and online platforms and has asked the company to provide proof of its claims. Meanwhile, the celebrities endorsing the company have been asked to explain how they found the company’s claims to be correct before endorsing them. The consumer affairs ministry had earlier asked celebrities to carry out “specific diligence” while endorsing products.
This move by the CCPA highlights the importance of consumer protection in India, especially in the online gaming and betting industry. The government has reportedly been taking steps to regulate and monitor the industry to prevent fraudulent activities and protect consumers from misleading advertisements. This notice serves as a reminder to companies and celebrities to ensure that their claims are truthful and backed by evidence before endorsing them to the public.
