The Department of Consumer Affairs has confirmed it currently lacks a regulatory framework for online astrology platforms. This admission followed an RTI hearing regarding allegations of financial harassment, unfair trade practices, and potential fraud by a digital astrology portal.
The Department of Consumer Affairs recently clarified to the Central Information Commission (CIC) that it does not have specific guidelines to govern online astrology platforms. This disclosure emerged during a hearing for a Right to Information (RTI) appeal, which highlighted growing concerns regarding how these digital consultation services operate in India.
Regulatory Gap in Digital Consultations
For investors and market observers, this acknowledgment points to a notable lack of oversight in the digital astrology sector. While many online platforms operate under broader e-commerce or service-provider classifications, the department explicitly noted that no dedicated regulations are currently in place to manage the unique business models of these apps. Because these platforms often function as intermediaries between consultants and the public, the absence of clear rules means there is no uniform standard for grievance redressal, internal rating systems, or contractual ethics between the company and the service providers.
Allegations of Unfair Practices
The RTI appeal brought forward several serious complaints against a specific, unnamed online astrology portal. The allegations include the imposition of high financial penalties on astrologers, potentially reaching up to 1 lakh rupees in some instances, and claims of inadequate work opportunities despite demands for long daily login hours. Furthermore, the complaint alleged that some platforms may be misusing their infrastructure for purposes outside of professional consultation, causing distress to participants. The applicant also raised concerns regarding the potential manipulation of internal performance metrics and ratings, which are often used to attract unsuspecting users.
Next Steps and Monitoring
Because the National Consumer Helpline primarily handles grievance resolution rather than conducting formal investigations, the CIC has ordered the Department of Consumer Affairs to provide a more detailed account of any prior probes. Additionally, the Commission has directed that concerns regarding potential fraud, business ethics, and corporate governance be transferred to the Ministry of Corporate Affairs and the Ministry of Electronics and Information Technology.
For those tracking the digital service sector, the key monitorable will be whether these ministries initiate formal studies or propose new guidelines to cover this segment. Any future move toward mandatory licensing or strict operational audits for such platforms could significantly alter their business costs and compliance requirements. Investors should watch for any upcoming official statements from the Ministry of Corporate Affairs regarding the oversight of these entities, as this could establish the first formal regulatory boundary for the industry.