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16 March 2024

Corporate Amicus: December 2023

Article

Demystifying the Dark Patterns
By Manan Chhabra, Sameer Avasarala and Jyotshna Yashaswi

Dark Patterns are deceptive web or UI designs or patterns used in web-based or mobile-based platforms, intended to manipulate or trick the decision of a consumer by deceiving them to do something that is determinantal to his interest. The article in this issue of Corporate Amicus discusses how authorities in various jurisdictions including India have been trying to combat the issue pertaining to these deceptive practices by introducing new norms under the consumer protection laws, and data protection rules and regulations to maintain consumer’s autonomy and transparency in online transactions. It also in this regard deliberates on the Central Consumer Protection Authority’s recently notified Guidelines for Preventions and Regulations of Dark Patterns, 2023 which specify 13 dark patterns, and the Digital Personal Data Protection Act, 2023 which according to the authors is important since at the heart of many dark patterns lies the element of ‘consent’. Further, according to them, implementation of these guidelines will be a challenge due to ambiguous explanations for some of the dark patterns listed in the Guidelines.

Notifications and Circulars

  • Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 notified
  • Credit of units of Alternative Investment Funds (AIFs) in dematerialized form – SEBI notifies process
  • Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals, and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2023 notified
  • E-mandates for recurring transactions – Limits for execution of e-mandates without Additional Factor of Authentication (AFA) increased for particular categories
  • Liberalised Remittance Scheme (LRS) for Resident Individuals – Reporting of monthly return and daily transactions

Ratio decidendi

  • Arbitration clauses present in unstamped/inadequately stamped agreements are enforceable, but inadmissible in evidence – Supreme Court
  • Group of Companies Doctrine is valid in Indian Arbitration jurisprudence – Supreme Court
  • Insolvency – Sections 95 to 100 of Insolvency and Bankruptcy Code, 2016 are constitutionally valid – Supreme Court

News Nuggets

  • Arbitration – Court cannot examine admissibility or relevance of evidence when exercising powers under Section 27
  • Arbitration – Cancellation of a conveyance deed is an arbitrable matter, being an action in personam
  • Insolvency – NCLT to refrain from affixing ‘date of hearing’ on an order, if ‘date of pronouncement’ is different
  • Insolvency – Promoter is eligible to submit Resolution Plan even if MSME Registration is obtained post commencement of CIRP
  • Insolvency – Date of default or pleadings can be amended at any stage of the matter

December 2023/Issue-147 December 2023/Issue-147

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