Addictive Platform Design: US Verdicts Spark Liability Debate in India
From Safe Harbour to Product Liability: Algorithms Under Scrutiny
Consumer Protection Act May Redefine Digital Platforms as Defective Goods
By Legal Reporter
New Delhi: May 22, 2026:
Two landmark US verdicts in March 2026 have shifted the debate on platform liability by treating addictive design features as defective products rather than neutral conduits. For India, this raises critical questions under the Information Technology Act, the Digital Personal Data Protection Act (DPDP), and the Consumer Protection Act (CPA), especially regarding whether algorithms and platform design can be classified as “products” subject to strict liability.
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The US Verdicts
- KGM v. Meta & YouTube (March 25, 2026): A Los Angeles jury awarded USD 6 million damages, holding that addictive design harmed a young user. The claim was framed as product liability, bypassing Section 230 of the US Communications Decency Act, which usually shields platforms from liability for third-party content.
- New Mexico v. Meta (March 24, 2026): The Attorney General secured USD 375 million in civil penalties under the state’s Unfair Practices Act, again focusing on addictive design rather than user-generated content.
These verdicts signal a shift from treating platforms as neutral conduits to viewing them as engineered products capable of causing harm.
Global Regulatory Trends
- UK Online Safety Act: Requires platforms to assess risks of harm to children, including addictive feedback loops.
- EU Digital Services Act: Found TikTok’s infinite scroll and autoplay features in preliminary breach.
- India: Karnataka banned social media access for children under 16 in March 2026. The National Human Rights Commission flagged violations of the DPDP Act, 2023, particularly Section 9, which prohibits processing children’s data in ways detrimental to well-being.
Indian Legal Framework
- Information Technology Act, 2000 – Section 79
- Provides safe harbour to intermediaries for third-party content.
- Does not explicitly cover liability for platform design.
- Digital Personal Data Protection Act, 2023 (DPDP)
- Section 9 prohibits behavioural monitoring and targeted advertising of children.
- Breach of DPDP could support causation in tort claims against platforms.
- Consumer Protection Act, 2019 (CPA)
- Services Framework (Section 85): Liability for deficient or negligent services. Applicability to free platforms remains debated, as CPA excludes services rendered “free of charge.”
- Product Liability Framework (Sections 82–87):
- Section 84(1)(b) imposes strict liability for design defects.
- Section 84(2) applies even without negligence.
- If algorithms are classified as “products,” claimants need only prove defective design caused harm.
The CPA’s broad definition of “goods” as movable property, combined with e-commerce provisions referencing “digital products,” creates interpretive space for courts to include platform design under product liability.
Implications for India
- For Platforms: Risk of liability if courts classify addictive algorithms as defective products.
- For Regulators: Need to harmonize IT Act safe harbour with CPA’s product liability regime.
- For Users: Potential new avenues for redress if harmed by addictive design features.
Critical Analysis
India’s tort jurisprudence is less developed than the US, making consumer protection law the more likely route for claims. Courts will need to decide whether digital platforms qualify as “products” under CPA. If they do, strict liability could apply, fundamentally altering the compliance landscape for tech companies.
FAQs for Quick Understanding
Q1: What is Section 230 in the US and its Indian equivalent?
Section 230 of the US Communications Decency Act shields platforms from liability for user content. India’s equivalent is Section 79 of the IT Act, 2000.
Q2: Why were the US verdicts significant?
They bypassed safe harbour by framing claims as product liability, focusing on addictive design rather than content moderation.
Q3: Can Indian law treat algorithms as “products”?
Possibly. The CPA’s broad definition of goods and references to digital products create scope for courts to classify algorithms as products.
Q4: How does the DPDP Act apply?
Section 9 prohibits harmful processing of children’s data. Breach could support claims of harm from addictive design.
Q5: What liability frameworks exist under CPA?
- Services liability: Requires proof of negligence or deficiency.
- Product liability: Imposes strict liability for design defects, even without negligence.
In summary: The US shift towards treating platform design as a product liability issue could reshape Indian jurisprudence. With CPA’s product liability provisions and DPDP’s child protection mandates, Indian courts may soon face the question of whether addictive algorithms are defective products capable of causing actionable harm.