WhatsApp is ‘free’ – so why does UP panel say consumer protection act applies to it?

The Uttar Pradesh State Consumer Disputes Redressal Commission in April issued a ruling that could upend established principles about the scope of consumer protection law online.

The panel has held that a complaint filed by a WhatsApp user is maintainable under the Consumer Protection Act. Until now, the act has only been invoked by users of paid online services as opposed to “free” services like WhatsApp.

This is because of Section 2(7) of the Act, which specifies that only those who pay consideration for services will qualify as consumers entitled to protection. The Uttar Pradesh panel’s ruling is perhaps the first time that the user of a “free” or zero cost app has successfully relied upon the act.

Millions of Indians use “free” apps for various essential services. Now, they can qualify as consumers and benefit from the protection of this act. Though users do not pay WhatsApp “consideration” in the traditional sense, they do so with their data – the currency de rigueur of cyberspace.

This data is monetised by platforms. Over time, data has become an ever more lucrative source of revenue, enriching platforms’ bottom line in novel, previously unseen ways.

Deficiency in service

For about 18 months, Amitabh Thakur had been seeking compensation from WhatsApp for an alleged violation of the...

Read more