IT Rules 2021: Impact assessment; legal, ethical and implementation concerns #
Social Media networks and platforms, chat and messaging applications, photo and video sharing services have radically transformed the internet landscape in India and elsewhere in the last decade. User generated content has allowed diverse voices to create and share views, political opinions, dance videos, movie and music commentaries.
While the platforms and networks have encouraged these voices, there is also a growing concern1 over the sharing of potentially offensive material such as pornographic content, child sexual abuse material (CSAM), hate speech and violent content often not suitable for the wide audience such platforms caters to.
The INFORMATION TECHNOLOGY (GUIDELINES FOR INTERMEDIARIES AND DIGITAL MEDIA ETHICS CODE) RULES, 2021 notified by the Ministry of Electronics and Information Technology (MEITY), together with the Ministry of Information and Broadcasting (MIB), Government of India – under the IT Act 2000, seeks to monitor and control user generated content and provide firm guidelines for social media Intermediaries, digital news publications and other organizations who host or transfer content on the internet.
The Rules were notified in February 2021, and went into effect in May 2021. Organizations and individuals have challenged the Rules on various counts2 – including their applicability under the parent law. Large platforms and social media networks have expressed concern about implementation and compliance.
Privacy Mode, a hub for conversations around privacy, data security and compliance, conducted a two-part research project seeking to understand the impact of the Rules on organizations and employees in the tech ecosystem who might be responsible for implementing the Rules and achieving compliance in tech and media products.
A qualitative study of Social Media Platforms, Digital News Publications, and Cloud Computing services providers, was undertaken to look at the possible impact on encryption, traceability, compliance, applicability of law among others, was conducted in May-June 2021; and a quantitative survey of tech workers across India, looking at awareness, professional and personal impact, work flows and requirements, was conducted in June-July 2021.
This report is a comprehensive analysis of both surveys and presents a rounded picture of the impact of the IT Rules 2021 on organizations and its employees. This research report also looks at larger questions and concerns about privacy, freedom of expression and speech given the discursive debates around responsible tech, digital platforms and ethics, and impact on society and individuals.
Executive Summary and Core Concerns #
Scope of the law #
By definition, the ‘Rules’ framed for any law in India are ‘Subordinate Legislation’ or ‘Delegated Legislation’. While laws are made by the Parliament/Legislature, Rules are made by the Executive i.e., the Government of India, to fulfill the requirements of the parent law. In Indian democracy, it is only the Legislative that can make laws. The Executive can only implement them. If the law says ‘XYZ has to be accomplished’, rules can frame the methods in which ‘XYZ’ can be accomplished. However, in the case of IT Rules 2021, the Rules are seen as overarching and exceeding the parent law.
Notified under the Information Technology Act, 20003 , which provides ‘Safe Harbour’ status to digital intermediaries, the Rules are ultra vires of the parent Act and seek to regulate activities that have no mention in it. Further, bringing digital news publishers under the ambit of the Rules, is unconstitutional and ultra vires of the IT act, as news websites do not fit the definition of ‘Intermediaries’ given under the Act4.
Further, the activities of news publishers and media are regulated by the Ministry of Information and Broadcasting (MIB)5, and thus excluded from the ambit of the IT Act. Concerns emerged that the Rules – which did not pass through the legislative body – sought to curtail rights and laws that did emerge from due legislative process.
Further, with existing guidelines under the Press Council Act that govern news organizations, the Rules are seen as overarching and drafted to censor specific media channels and outlets.
The Rules require intermediaries to identify the first originator of messages deemed objectionable. This implies that messaging platforms and social networking sites will have to significantly alter their product (and the technology underlying products) to comply. This is again not governed by the parent act, and is therefore unconstitutional. The Rules also operate from a position of assumed guilt, where all conversations and communications are expected to be scanned for potentially offensive material, and traced back to the original sender. This is against the assumption of innocence enshrined in the legal system operating in the country.
Breaking encryption and implementing traceability, a fundamental requirement of the new Rules, have international legal implications, as messaging services and social media platforms will need to alter the underlying technical architecture of their products or services - or at least have a different product and user experience for Indian users. Since this cannot be implemented for users in India alone and will affect every user of the services across the world, these social media intermediaries will be in violation of international laws governing user privacy and security, thus inviting legal costs.
Freedom of expression and natural justice #
The Rules are seen as violating freedom of expression guaranteed in the Indian constitution by implementing traceability, which breaks encryption. Privacy, also a fundamental right as determined by the Supreme Court of India, is increasingly seen as a ‘make-or-break’ feature of all websites, apps, products, and services. Privacy operates from a position of assumption of innocence of the user. The Rules, by enforcing traceability, violate the fundamental rights of Indian citizens by reducing privacy to a conditional service, and not a constitutional guarantee
Cost of compliance #
When the IT Rules came into effect in May 2021, they were criticized for imposing high costs of compliance, including legal and personal liability attached to employees of social media organizations. In the case of the office of the Chief Compliance Officer (CCO), liability extended even after the CCO retired from office. Every social media and news organization surveyed during this research pointed to the personal liability attached to the role of the CCO, grievance and nodal officers as imposing financial and legal costs on their organizations.
Proactive content filtering requirements will impact human resources requirements, demand changes in product and business operations, thereby significantly increasing costs. Traceability clauses under the Rules require extensive overhaul of messaging services and social networking platforms’ core architecture, requiring significant monetary and human resource investment.
Further, respondents in the Focus Group Discussions (FGDs) believed that ease of doing business will diminish given the stringent compliance regime and employee impact.
The Rules are also framed vaguely and arbitrarily, leading to confusion over operating clauses. Additionally, they have stringent reporting requirements. This will affect all organizations, especially small and medium enterprises, financially, and otherwise.
Skill and competency of Industry #
In addition to the legal and ethical concerns emerging from implementation of the Rules, there are knowledge, awareness, and skill gaps across a representative sample of the IT industry, which may impact the ability of organizations to comply with the IT Rules.
Software developers in junior and mid-level roles in IT organizations believe their workload will increase with the IT Rules. Respondents hinted at their jobs now requiring them to do more documentation and reporting, and their role in achieving compliance in the company’s product as increasing their workload.
Industry representatives however felt that tech workers and product managers will fundamentally need knowledge in, or retraining in, privacy features, content filtering and user experience, in order to fully comply with the Rules. Experts in the industry believe that more than just technical skills or knowledge, what is missing is also perspective and understanding of how executing the Rules will impact users of media and tech products.
As noted above, encryption and traceability requirements of the Rules will mean major changes in products, especially user experience and inability to safeguard privacy of Indian users under the IT Rules. Implementing features such as voluntary verification will need product managers to acquire new skills and knowledge. Tech workers will need to learn how to work in coordination with legal teams. Given the implementation of the IT Rules, each content takedown request will have to be serviced on a case-by-case basis. This will impact scale and standard operating procedures in organizations, or will result in organizations relying more heavily on automation to censor content proactively (and to avoid being served takedown notices). In both cases, users of these products will bear the brunt, where their freedom of speech and expression will be reduced drastically.
Individual chapters and sections of the report are presented as submissions. Scroll down to read them.
About the principal researchers #
Nadika Nadja is a researcher at Hasgeek. She has worked across advertising, journalism, TV and film production as a writer, editor and researcher.
Bhavani S is a Research Associate at Hasgeek. She has previously worked for the Centre for Budget and Policy Studies (CBPS), Microsoft Research India, and the University of Michigan, Ann Arbor.
Support team #
Anish TP illustrated the report. Satyavrat KK provided research and editorial support. David Timethy and Zainab Bawa were project managers for producing this report. Kiran Jonnalagadda and Zainab Bawa advised on research design and execution.
We would like to thank the following individuals who provided feedback during different stages of the research. Their feedback helped the team fine-tune and bring rigour to the research process.
- Suman Kar, founder of security firm Banbreach, for reviewing early drafts of the quantitative research questionnaire, and providing detailed inputs on survey design.
- Prithwiraj Mukherjee, Assistant Professor of Marketing at IIM-Bangalore, for reviewing early drafts of the quantitative research questionnaire, and providing detailed inputs on survey design.
- Chinmayi SK, Founder of The Bachchao Project, for reviewing and providing feedback on the final report and conclusions
While Hasgeek sought funding from organizations, the research itself was conducted – with full disclosure at all stages – independently and objectively. The findings do not reflect any individual organization’s needs.
*[MEITY]: Ministry of Electronics and Information Technology
*[MIB]: Ministry of Information and Broadcasting
*[MSME]: Ministry of Micro, Small, and Medium Enterprises
*[CSAM]: Child Sexual Abuse Material
Unicef: Growing concern for well-being of children and young people amid soaring screen time (2021) - https://www.unicef.org/press-releases/growing-concern-well-being-children-and-young-people-amid-soaring-screen-time ↩︎
LiveLaw: Supreme Court Lists Centre’s Transfer Petitions, Connected Cases After 6 Weeks
India Code: The Information Technology Act 2000 https://www.indiacode.nic.in/bitstream/123456789/1999/3/A2000-21.pdf ↩︎
India Code: IT Act Definitions https://www.indiacode.nic.in/show-data?actid=AC_CEN_45_76_00001_200021_1517807324077§ionId=13011§ionno=2&orderno=2 ↩︎
Detailed findings: Overall awareness
The IT Rules, Intermediary Guidelines 2021, have a far-ranging impact on social media apps, digital news and content, and cloud hosting providers in the country. The Rules could potentially affect a far wider section of the startup and SME sector in India given that many of these organizations produce content in one form or another which can be regulated. While the legality and ethicality of the Rules themselves are in question, respondents also raised concerns about the implementation hurdles, especially with respect to following international guidelines, costs of implementation, and skill gaps in the industry.
Findings in the report are from our Developer survey, and our discussions and roundtables with representatives of social media and public interest technologists.
Overall awareness #
The quantitative survey mapped how tech workers view IT Rules 2021 based on how they followed news about the Rules in the recent past. Respondents were asked whether they knew that the Rules had been enforced, and how much they had read about the topic. Responses to this question helped us situate the respondents with regards to their awareness about the law. Most respondents had seen headlines and followed the news cycle.
Tech workers were largely dependent on digital news media and social media channels for information regarding the Rules (and subsequently, opinion formation).
Of the 203 respondents, 36% said they only read the headlines. Nearly 60% of the respondents said they knew about the Rules by following news articles and discussions on social media channels including Twitter. Based on this finding, we can conclude that social media and digital news are fast becoming primary sources of information for many individuals. Given that the IT Rules will regulate (and even censor) digital news and online content, the circulation, consumption and censorship of information on these channels will need to be analyzed closely a year from now to reassess impact on consumers and producers.
With regard to awareness and understanding of the IT Rules, we found the following three trends from the survey results:
- A segment of rural respondents were more likely to have not read the Rules at all
- Equally, a segment of rural respondents were more likely to have read the IT Rules in detail
- Respondents from urban areas were more likely to have some awareness of the Rules, but reported that they are less conversant with details.
|What best represents your region||I think I remember seeing something.||N/A||No||Somewhat. I saw some headlines.||Yes. I followed the news closely.||Yes. I read the rules in detail.||Grand Total|
When taking into account the work experience of respondents, we noticed that those who had less than five years of experience were more likely to have read the Rules, with the largest percentage of respondents having at least read headlines. Respondents with over 10 years of work experience were more likely to have read the Rules in much more detail.
From qualitative interviews, we knew that decision-makers and leaders in organizations had a better understanding of the IT Rules and their impact. Most respondents in the interviews had read the Rules and were beginning to comply with them . Some respondents, mainly consultants and services and infrastructure providers, also had a client-facing responsibility and had to understand the Rules as they applied to both - their own organization and to their clients’ organizations. A senior security consultant at a large cloud services organization put it:
“So, the IT Rules typically come to us when there is a customer who needs to implement something, needs to create something, and they have to decipher the Rules. That’s where we come in. We also take proactive measures to understand other guidelines, such as personal data bill and others. So we do read proactively and help customers to understand how this will apply to them.”
Based on respondent profiles and level of responsibility in their organizations, we can conclude that awareness of the IT Rules is on a graded scale i.e., awareness is reduced lower down the organization hierarchy.
*[SME]: Small and Medium Enterprises