Imagine coming across an online video featuring a well-known leader from the financial world—the Managing Director and CEO of the National Stock Exchange of India (NSE). Their face is familiar, their voice resonates with authority, and they appear to endorse a new investment scheme. Given the reputation of NSE, you might be inclined to believe what you're seeing. But here's where the story takes a twist: the video isn't real at all. In fact, it's an elaborate deepfake—a clever digital manipulation using AI to mimic the CEO's facial expressions, voice, and gestures. The perpetrators behind this content had an audacious goal: to deceive viewers into believing that these endorsements were legitimate, backed by the NSE itself.
Not only did these fraudsters use AI to impersonate a trusted leader, but they also went a step further, misusing the NSE trademark in false advertisements. By displaying the NSE logo alongside these fabricated endorsements, they crafted a convincing illusion of credibility. The goal? To mislead unsuspecting viewers into putting their trust—and potentially their money1—into schemes entirely disconnected from the real NSE.
This scenario illustrates a sophisticated evolution in digital deception, where technology like deepfakes is wielded not just for mischief, but to erode trust and manipulate audiences. It serves as a cautionary tale, reminding us to scrutinize even the most convincing endorsements. After all, in a world of deepfakes and AI trickery, things are rarely as they seem.
This is not the plot of a Bollywood movie. It is the gist of National Stock Exchange of India Ltd. vs. Meta Platforms, Inc. & .
In an effort to ensure a safe cyber environment, the Information Technology Act, 2000 ("IT Act") and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 ("IT Rules 2021") mandate the intermediaries to take prompt action in some cases by removing the prohibited content from their platforms, which could lead to irreparable loss and/or harm to the individuals in instances like cyber financial frauds and scams. The Ministry of Electronics and Information Technology issued an advisory on September 03, 2024 highlighting the inability of the intermediaries to enforce their statutory responsibilities by taking a note of the judgement of the Hon'ble High Court of Bombay matter of National Stock Exchange of India Ltd. vs. Meta Platforms, Inc. & Ors.
Legal Issues Considered
- The social media intermediaries failed to prevent the continued circulation of the infringing thus, neglecting their statutory obligations under the IT Act and the IT Rules 2021.
- The perpetrators committed infringement of trademark and passing off by using the registered trademark "NSE" to post fake advertisements, making Facebook accounts, pages, and telegram channels.
Court Decisions Cited
The court referred to the following decisions:
|
Forum |
Case Name |
Citation |
Precedent |
|
Delhi High Court |
Aaradhya Bachchan and another. Vs. Bollywood Time and another |
2023 SCC OnLine Del 2268 |
It is the prime responsibility of the intermediary platforms to restrain the circulation and dissemination of vile and offending content |
|
Bombay High Court |
UTI Infrastructure Technology and Services Limited. vs. Extra Tech World and others |
IA (L) No.564 of 2024 in COMIP Suit (L) No.537 of 2024 dated 12th January, 2024 |
Intermediaries directed to delete unauthorised domains and/or website on which unknown persons/ entities engage in fraudulent activity of imitating the applicant and its marks |
Conclusion
The Hon'ble Bombay High Court has clarified how intermediaries should handle false and misleading information under the IT Act, especially Rule 3(1) of the IT Rules. Intermediaries must make reasonable efforts to remove or disable access to any content that is knowingly false or misleading. They are required to act as quickly as possible, and no later than 36 hours after receiving a court order or notice from the Government or its agency. Additionally, for cases involving the National Stock Exchange (NSE), the Court instructed intermediaries to remove or disable suspicious pages, profiles, accounts, videos, and groups within 10 hours of notification by NSE representatives. This guidance reinforces the importance of a quick response by intermediaries to prevent the spread of harmful content.
But still means that removing a deepfake video from the internet shall require a court order. This mechanism is not feasible for the speed of the generative AI world and the damage that it can cause. Better mechanisms are awaited.
Footnotes
1 National Stock Exchange of India Ltd. vs. Meta Platforms, Inc. & Ors., Interim Application (L) No. 21456 OF 2024 in COM IPR SUIT (L) No. 21111 OF 2024
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