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The rampant practice of fake or unverified reviews make it impossible for consumers to differentiate between actual and paid reviews of products and services.
The government has finalised a draft framework of standards on how to counter fake reviews and unverified star ratings on e-commerce websites, and travel and hotel bookings platforms, and is currently in consultation with e-commerce platforms for a consensus on the matter, Rohit Kumar Singh, secretary, Department of Consumer Affairs, said in an exclusive interview with ET's podcast series, The Morning Brief.
The pandemic, especially, saw massive escalation of e-commerce. A report by Redseer Strategy Consultants said online sales (or gross merchandise value) during the festive season this year would reach $11.8 billion, a 28% increase over last year.
The framework has been developed by the Department of Consumer Affairs (DoCA) over the past few months.
"We have told them don't advertise liquor in the garb of CDs or soda water. Don't use celebrities for this, because a celebrity further accentuates all this, specially among the youth who have impressionable minds," he said. "The adverse effect gets further accentuated."
On guidelines issued by the government about three months back on paid celebrity endorsements, including making endorses and influencers legally accountable, or having to provide proof of due diligence or disclosing equity or profit sharing, he said there's a set of officers who are closely monitoring this.
"We have seen a lot of cleaning up on the kind of ads that are being telecast or broadcast. If you cross the line, then enforcement will take place. I think it's working as we had expected to be. Of course, it is still a work in progress. We are not interested in punishing anyone, not necessarily. This is sort of a cautionary that please don't indulge into this," the 1989-batch IAS officer said.
On existing guidelines on advertising for children, including clampdown on bullying, body shaming and junk food promotion, Singh said the guidelines are "more in the form of deterrents", and that there's a set of officers who are monitoring all such platforms.
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