Swiggy’s promotion of Yolo247 raises concerns amid government warnings

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Swiggy, one of India’s leading food delivery platforms, has been seen promoting Yolo247, an offshore betting website, despite clear government regulations cautioning against the endorsement of online betting and gambling platforms. This move can be perceived as a disregard for legal advisories aimed at curbing the promotion of such activities.

The Ministry of Information and Broadcasting has issued an advisory warning all endorsers, including social media influencers and celebrities, to refrain from promoting or advertising offshore betting and gambling platforms. The advisory highlighted the significant financial and socioeconomic risks these platforms pose, particularly to the youth, who are highly vulnerable to the lure of quick financial gains.

The advisory also stated that violations could invite strict legal actions under the Consumer Protection Act, 2019. It warned that non-compliance might lead to the removal of social media posts, disabling of accounts, and penal proceedings. Moreover, the advisory referenced Section 79 of the IT Act, 2000, which mandates intermediaries to remove unlawful content upon receiving notice, failing which they risk losing their immunity from liability.

The Central Consumer Protection Authority (CCPA) had earlier issued a similar warning, emphasizing that surrogate advertisements for betting platforms would be subject to rigorous scrutiny. The CCPA also cautioned celebrities and influencers about the consequences of endorsing such platforms, reinforcing the government’s commitment to tackling the growing menace of online gambling. This is not the first time that illegal betting platforms have been promoted despite government warnings. Fairplay, another illegal betting platform, has notably used celebrity endorsements to gain traction, with big names like Badshah and Jacqueline Fernandez actively involved in its promotions.

Despite these clear guidelines, Swiggy came under fire for its association with Yolo247. The promotion appears to disregard the government’s advisory, raising questions about the platform’s commitment to ethical business practices. While Swiggy has yet to release an official statement, critics argue that this action demonstrates either a lack of due diligence or a deliberate disregard for legal and societal responsibilities.

By promoting an offshore betting website, Swiggy has inadvertently contributed to normalizing gambling activities, which are widely considered harmful due to their potential to cause financial distress and addiction. Given Swiggy’s massive user base, including a large number of impressionable young consumers, the implications of such promotions can be particularly troubling.

Swiggy’s promotion of Yolo247 can have  implications across legal, ethical, and societal dimensions. As a major digital platform, Swiggy is expected to align with national laws and refrain from supporting entities operating in legally ambiguous territories. The move could invite punitive actions under the Consumer Protection Act and IT Act, placing the company under the spotlight for failing to adhere to government guidelines.

The incident also raises concerns about the broader societal impact. Normalizing betting and gambling through such promotions can exacerbate issues like gambling addiction, financial instability, and mental health challenges, particularly among young and vulnerable users. This controversy follows the CCPA’s recent warnings to celebrities and influencers, urging them to avoid endorsing betting platforms due to their detrimental effects on society.

As the issue continues, it is unclear how Swiggy will address the criticism or if authorities will take action. This incident has started a bigger discussion about the responsibilities of companies in India’s fast-growing digital economy.

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