What is the legal liability of platforms for user comments, reviews, or ratings?

In today’s digital age, user-generated content like comments, reviews, and ratings plays a central role in shaping online reputations and influencing consumer choices. However, this also raises questions about the legal liability of platforms hosting such content, especially when it comes to false, defamatory, or offensive reviews.

For example, if a user posts a false review about a product or service that damages a business’s reputation, or if users post offensive comments about a person or company, should the platform that hosts these comments be held legally responsible?

Indian laws, including the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and the Indian Penal Code (IPC), establish guidelines for platforms' responsibilities regarding user-generated content. These laws define the legal liability of platforms, their role as intermediaries, and how they should act to avoid legal repercussions for harmful or illegal content posted by users.

1. Legal Framework for Platform Liability

a. Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

The Intermediary Guidelines issued under the Information Technology Act, 2000 govern the responsibilities of platforms hosting user-generated content. These rules apply to platforms like e-commerce websites, social media sites, and review portals.

Key provisions affecting platform liability:

• Intermediary Status: Platforms are typically considered intermediaries and are not directly liable for content posted by users. However, they can lose this immunity if they fail to adhere to due diligence requirements outlined in the rules.
• Due Diligence: Platforms must follow a due diligence process, which includes:
• Implementing a content moderation system to remove defamatory, false, or illegal content when flagged.
• Acknowledging complaints from users within a specific period (usually 24-36 hours).
• Taking swift action to remove or disable access to illegal content once it’s flagged by the appropriate authorities.
• Failure to implement these practices can result in platforms losing their safe harbor protection and being held liable for the content posted by users.
• Grievance Redressal Mechanism: Platforms must set up a complaint handling mechanism for users to report false reviews, defamation, or offensive content. This must be transparent, and platforms are obligated to take action in a timely manner.

b. Indian Penal Code (IPC)

The IPC also applies to platforms in cases where user-generated content violates Indian laws, such as defamation, hate speech, or obscenity. Specific sections of the IPC relevant to platform liability include:

• Section 499: Deals with defamation. If a user posts defamatory content about an individual or organization, both the user and the platform hosting the content could face liability if it is proven that the platform did not take appropriate action to remove it.
• Section 66A (repealed): Previously, this section dealt with sending offensive messages electronically, but it was struck down by the Supreme Court of India in 2015. However, similar provisions are covered under other sections, like Section 292 (dealing with obscene content) or Section 153A (for promoting enmity).
• Platforms may be held liable under the IPC if they are found to have allowed illegal content to remain accessible after being notified, especially if such content causes harm.

2. Platform Liability for Defamatory, False, or Offensive Content

a. Defamation

Defamation occurs when someone posts false information about a person or business that causes harm to their reputation. If a user posts a defamatory review or comment, the platform can be held liable if:

• The platform has failed to moderate the content, especially after receiving complaints.
• The platform does not follow the due diligence process under the Intermediary Guidelines, such as failing to remove defamatory content within a reasonable time after receiving a complaint.

For instance, if a user falsely claims that a product is defective, and the platform does not act on the complaint, the platform could be sued for defamation.

b. False Reviews and Ratings

False reviews and ratings can mislead consumers and cause damage to businesses. The platform may be held liable if:

• It allows fake reviews to remain on the platform.
• It does not take reasonable measures to prevent or remove fraudulent reviews, despite being made aware of the issue.

Under the Consumer Protection (E-Commerce) Rules, 2020, platforms are required to have a mechanism in place to prevent fraudulent or manipulated reviews. If a business can demonstrate that a platform allowed false reviews to damage its reputation, the platform could face legal consequences.

c. Offensive and Illegal Content

Platforms are also responsible for moderating content that is obscene, hateful, or discriminatory under Indian laws. Failure to remove such content can lead to:

• Criminal liability under the IPC, especially in cases of hate speech or pornography.
• Civil liability if the content causes harm or damages the reputation of an individual or business.

3. Safe Harbor Protection and Platform Responsibilities

Under the Intermediary Guidelines, platforms are granted safe harbor protection, meaning they are not liable for user-generated content unless they fail to act on flagged content in a timely and appropriate manner. This protection is conditioned on:

• Exercising due diligence to prevent the hosting of illegal content.
• Providing users with a complaints mechanism for reporting harmful content.
• Taking prompt action once content is flagged.

If platforms meet these obligations, they are shielded from liability for user-generated content. However, if they fail to comply with these rules, they lose this protection and may be held legally responsible for the content hosted on their sites.

4. Example of Legal Liability

Scenario: An e-commerce platform allows users to post reviews for products. A user posts a defamatory review claiming that a product caused them harm, which damages the reputation of the seller. The platform receives a complaint but fails to take action for several days.

Legal Implications:

• The platform may be held liable for failing to remove the defamatory content promptly, violating due diligence provisions under the Intermediary Guidelines.
• The seller may take legal action under defamation laws in the IPC and seek compensation from the platform for the harm caused by the false review.

Conclusion

E-commerce platforms and digital platforms that host user-generated content, such as comments, reviews, and ratings, can be held legally liable for defamatory, false, or offensive content posted by users. While platforms are typically shielded from liability under the safe harbor provisions of the Intermediary Guidelines, they must adhere to due diligence requirements, including having a complaints mechanism and taking prompt action to remove harmful content. Failure to follow these procedures can result in legal consequences, including defamation suits, criminal liability, and loss of safe harbor protection. Therefore, platforms must maintain active content moderation and ensure compliance with Indian laws to avoid liability.