Bombay HC Directs Meta, Other Platforms To Remove 'Deepfake' Videos Of NSE's CEO Urging Investors To Join Whatsapp Group For Stock Tips

Justice R.I. Chagla was considering the interim application filed by NSE (plaintiff) for directing the social media platforms (defendant nos. 1 to 6) to remove AI-generated videos of Mr. Ashishkumar Chauhan, NSE's MD and CEO. This application was filed in relation to an IPR suit, against infringing and passing off NSE's trademark in false and misleading advertisements on social media.

The first 'deepfake' video, posted by a Meta page 'Stock Analyst', showed the MD & CEO persuading common investors to join a WhatsApp Community for stock picking. It also claimed that the NSE would recommend stocks weekly to the investors for their monetary gains. Similarly, the second video posted by a page 'The Sky of the Stock Market', promoted a WhatsApp group for stock picking and promised the investors reimbursement by the NSE in case of losses. These videos along with other fake videos were circulated in WhatsApp groups and Telegram Channels.

NSE contended that the continued circulation of the fake videos would have disastrous consequences for investors, leading to financial losses. It stated that the fake videos would cause financial and reputational loss to NSE and damage its standing as a leading market regulator. NSE further contended that as Rule 3(1) of the IT Rules, the intermediary/social media platform must take reasonable steps to not host, display or transmit any information that infringes on intellectual property rights or spreads false or misleading information.

The High Court noted that the interim application was also filed against unknown person (defendant nos. 7 and 8) as the NSE was unable to identify the people who posted fake videos. It was of the view that the videos were prima facie false and misleading advertisements, which were circulated by people maintaining complete anonymity.

The Court referred to Rule 3(1) of the IT Rules and noted that an intermediary must promptly remove or disable access to information that is false or infringes IPR, no later than thirty-six hours from receiving a court order. It held that the social media platforms are under an obligation to take action on complaints received by the NSE to prevent any violations of their rights on social media.

“…the Defendant Nos. 1 to 6 who are the intermediaries are mandated by the IT Rules to take prompt action on the complaints received from entities such as the Plaintiff of their rights being violated by the unauthorized user of the Plaintiff's trade mark on dubious webpages and / or profiles, accounts and/or advertisement and/or videos and/or contents and/or social media groups…” the court said.

It stated that the NSE made a prima facie case for grant of ad-interim relief against the intermediaries as well as unknown perpetrators. It remarked “The balance of convenience also lies in favour of the Plaintiff and irreparable loss and / or harm will be caused to the Plaintiff, unless the ad-interim relief sought for is granted.”

The Court thus directed the social media intermediaries to take down the fake videos from their platforms. It also directed them go remove any remove fake and misleading content from their platforms within 10 to 14 hours of receiving a complaint from the NSE. It directed the intermediaries to provide details of perpetrators involved in publishing fake videos or using NSE's trademark.

It further ordered the unknown perpetrators to stop using NSE's trademark and to stop creating/publishing fake videos or similar deceptive content.

Case title: National Stock Exchange of India Ltd. vs. Meta Platforms, Inc. & Ors. (Interim Application (L) No.21456 of 2024 In Com IPR Suit (L) No.21111 Of 2024)

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