Daily Passage Test for CLAT - Apr 5 MCQs & solutions Free

Direction: Read the following passage carefully and answer the questions given below:

The intent of the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022 to include online gaming seems to be twofold – it seeks to address the concerns around user safety and to help the growth of the sunrise sector. The draft amendment proposes additional due diligence for online gaming intermediaries such as registration of an intermediary with a self-regulatory organisation (SRO) and setting up of a two-tiered grievance redressal mechanism. The draft rules define ‘online games’ as games "offered on the Internet and are accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings." Three criteria needs to be fulfilled to be qualified as an online game:

• It should be offered on the internet.
• There has to be a deposit.
• The deposit should be made with the expectation of earning winnings.

The plain reading of the definition interprets it as regulating only real-money games. However, there needs to be more clarity on what the regulation means by 'in kind' as mentioned in the definitions of 'winnings' and 'deposits'.

‘In kind’ can be interpreted as coins that a user collects while unlocking various levels and deposits them to win upgraded weapons. Similarly, there are games that award tokens, which can then be used to unlock new levels or materials. Such tokens could also come under the definition of ‘in kind’ even though it may not be the intention. There are certain additional compliances to be undertaken by an online gaming intermediary while offering online games when operating from India. The additional compliances inter alia include:

• Display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body;
• Inform the user of the computer resource the rules and regulations, privacy policy, terms of service and user agreements;
• Prominently publish on its website, mobile based application or both, a random number generation certificate and a no bot certificate from a reputed certifying body for each online game offered by it;
• Identify the user and verify his identity at the time of commencement of a user account-based relationship. For KYC of the user, the online gaming intermediary will have to follow norms laid down for entities regulated by the Reserve Bank of India;
• Assign an employee of the online gaming company as the Grievance Officer. The employee must be resident in India;
• Appoint a Chief Compliance Officer, who shall be a key managerial personnel or such other senior employee of the online gaming intermediary who is resident in India, and who shall be responsible for compliances;
• Appoint a nodal contact person for 24x7 coordination with law enforcement agencies
• Enable users who register for their services from India, or use their services in India, to voluntarily verify their accounts by using any appropriate mechanism;
• Have a physical contact address in India published on its website or mobile based application, or both, for the purposes of receiving any communication addressed to it; and
• Inform its users of the change to its rules and regulations, privacy policy or user agreement immediately after such change is effected, in English or any language specified in the Eighth Schedule to the Constitution, in the language of his choice.

Q. What additional compliance measures must online gaming intermediaries undertake according to the draft amendments when offering online games from India?

Direction: Read the following passage carefully and answer the questions given below:

The intent of the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022 to include online gaming seems to be twofold – it seeks to address the concerns around user safety and to help the growth of the sunrise sector. The draft amendment proposes additional due diligence for online gaming intermediaries such as registration of an intermediary with a self-regulatory organisation (SRO) and setting up of a two-tiered grievance redressal mechanism. The draft rules define ‘online games’ as games "offered on the Internet and are accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings." Three criteria needs to be fulfilled to be qualified as an online game:

• It should be offered on the internet.
• There has to be a deposit.
• The deposit should be made with the expectation of earning winnings.

The plain reading of the definition interprets it as regulating only real-money games. However, there needs to be more clarity on what the regulation means by 'in kind' as mentioned in the definitions of 'winnings' and 'deposits'.

‘In kind’ can be interpreted as coins that a user collects while unlocking various levels and deposits them to win upgraded weapons. Similarly, there are games that award tokens, which can then be used to unlock new levels or materials. Such tokens could also come under the definition of ‘in kind’ even though it may not be the intention. There are certain additional compliances to be undertaken by an online gaming intermediary while offering online games when operating from India. The additional compliances inter alia include:

• Display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body;
• Inform the user of the computer resource the rules and regulations, privacy policy, terms of service and user agreements;
• Prominently publish on its website, mobile based application or both, a random number generation certificate and a no bot certificate from a reputed certifying body for each online game offered by it;
• Identify the user and verify his identity at the time of commencement of a user account-based relationship. For KYC of the user, the online gaming intermediary will have to follow norms laid down for entities regulated by the Reserve Bank of India;
• Assign an employee of the online gaming company as the Grievance Officer. The employee must be resident in India;
• Appoint a Chief Compliance Officer, who shall be a key managerial personnel or such other senior employee of the online gaming intermediary who is resident in India, and who shall be responsible for compliances;
• Appoint a nodal contact person for 24x7 coordination with law enforcement agencies
• Enable users who register for their services from India, or use their services in India, to voluntarily verify their accounts by using any appropriate mechanism;
• Have a physical contact address in India published on its website or mobile based application, or both, for the purposes of receiving any communication addressed to it; and
• Inform its users of the change to its rules and regulations, privacy policy or user agreement immediately after such change is effected, in English or any language specified in the Eighth Schedule to the Constitution, in the language of his choice.

Q. According to the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022, what is the primary intent behind including online gaming within the regulations?

Direction: Read the following passage carefully and answer the questions given below:

The intent of the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022 to include online gaming seems to be twofold – it seeks to address the concerns around user safety and to help the growth of the sunrise sector. The draft amendment proposes additional due diligence for online gaming intermediaries such as registration of an intermediary with a self-regulatory organisation (SRO) and setting up of a two-tiered grievance redressal mechanism. The draft rules define ‘online games’ as games "offered on the Internet and are accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings." Three criteria needs to be fulfilled to be qualified as an online game:

• It should be offered on the internet.
• There has to be a deposit.
• The deposit should be made with the expectation of earning winnings.

The plain reading of the definition interprets it as regulating only real-money games. However, there needs to be more clarity on what the regulation means by 'in kind' as mentioned in the definitions of 'winnings' and 'deposits'.

‘In kind’ can be interpreted as coins that a user collects while unlocking various levels and deposits them to win upgraded weapons. Similarly, there are games that award tokens, which can then be used to unlock new levels or materials. Such tokens could also come under the definition of ‘in kind’ even though it may not be the intention. There are certain additional compliances to be undertaken by an online gaming intermediary while offering online games when operating from India. The additional compliances inter alia include:

• Display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body;
• Inform the user of the computer resource the rules and regulations, privacy policy, terms of service and user agreements;
• Prominently publish on its website, mobile based application or both, a random number generation certificate and a no bot certificate from a reputed certifying body for each online game offered by it;
• Identify the user and verify his identity at the time of commencement of a user account-based relationship. For KYC of the user, the online gaming intermediary will have to follow norms laid down for entities regulated by the Reserve Bank of India;
• Assign an employee of the online gaming company as the Grievance Officer. The employee must be resident in India;
• Appoint a Chief Compliance Officer, who shall be a key managerial personnel or such other senior employee of the online gaming intermediary who is resident in India, and who shall be responsible for compliances;
• Appoint a nodal contact person for 24x7 coordination with law enforcement agencies
• Enable users who register for their services from India, or use their services in India, to voluntarily verify their accounts by using any appropriate mechanism;
• Have a physical contact address in India published on its website or mobile based application, or both, for the purposes of receiving any communication addressed to it; and
• Inform its users of the change to its rules and regulations, privacy policy or user agreement immediately after such change is effected, in English or any language specified in the Eighth Schedule to the Constitution, in the language of his choice.

Q. An online game that gives both real-money and in-kind incentives has just been released by a brand-new online gaming intermediary called GamingTech Pvt Ltd. The business has a grievance officer and a physical address in India, but it lacks a chief compliance officer and a nodal contact for coordinating with law enforcement. Additionally, the business does not immediately notify users of modifications to its terms and conditions, privacy policy, or user agreement. Which of the ensuing choices is accurate?

Direction: Read the following passage carefully and answer the questions given below:

The intent of the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022 to include online gaming seems to be twofold – it seeks to address the concerns around user safety and to help the growth of the sunrise sector. The draft amendment proposes additional due diligence for online gaming intermediaries such as registration of an intermediary with a self-regulatory organisation (SRO) and setting up of a two-tiered grievance redressal mechanism. The draft rules define ‘online games’ as games "offered on the Internet and are accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings." Three criteria needs to be fulfilled to be qualified as an online game:

• It should be offered on the internet.
• There has to be a deposit.
• The deposit should be made with the expectation of earning winnings.

The plain reading of the definition interprets it as regulating only real-money games. However, there needs to be more clarity on what the regulation means by 'in kind' as mentioned in the definitions of 'winnings' and 'deposits'.

‘In kind’ can be interpreted as coins that a user collects while unlocking various levels and deposits them to win upgraded weapons. Similarly, there are games that award tokens, which can then be used to unlock new levels or materials. Such tokens could also come under the definition of ‘in kind’ even though it may not be the intention. There are certain additional compliances to be undertaken by an online gaming intermediary while offering online games when operating from India. The additional compliances inter alia include:

• Display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body;
• Inform the user of the computer resource the rules and regulations, privacy policy, terms of service and user agreements;
• Prominently publish on its website, mobile based application or both, a random number generation certificate and a no bot certificate from a reputed certifying body for each online game offered by it;
• Identify the user and verify his identity at the time of commencement of a user account-based relationship. For KYC of the user, the online gaming intermediary will have to follow norms laid down for entities regulated by the Reserve Bank of India;
• Assign an employee of the online gaming company as the Grievance Officer. The employee must be resident in India;
• Appoint a Chief Compliance Officer, who shall be a key managerial personnel or such other senior employee of the online gaming intermediary who is resident in India, and who shall be responsible for compliances;
• Appoint a nodal contact person for 24x7 coordination with law enforcement agencies
• Enable users who register for their services from India, or use their services in India, to voluntarily verify their accounts by using any appropriate mechanism;
• Have a physical contact address in India published on its website or mobile based application, or both, for the purposes of receiving any communication addressed to it; and
• Inform its users of the change to its rules and regulations, privacy policy or user agreement immediately after such change is effected, in English or any language specified in the Eighth Schedule to the Constitution, in the language of his choice.

Q. Which of the following is NOT one of the criteria that need to be fulfilled to qualify as an online game under the draft amendments?

Direction: Read the following passage carefully and answer the questions given below:

The intent of the latest draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2022 to include online gaming seems to be twofold – it seeks to address the concerns around user safety and to help the growth of the sunrise sector. The draft amendment proposes additional due diligence for online gaming intermediaries such as registration of an intermediary with a self-regulatory organisation (SRO) and setting up of a two-tiered grievance redressal mechanism. The draft rules define ‘online games’ as games "offered on the Internet and are accessible by a user through a computer resource if he makes a deposit with the expectation of earning winnings." Three criteria needs to be fulfilled to be qualified as an online game:

• It should be offered on the internet.
• There has to be a deposit.
• The deposit should be made with the expectation of earning winnings.

The plain reading of the definition interprets it as regulating only real-money games. However, there needs to be more clarity on what the regulation means by 'in kind' as mentioned in the definitions of 'winnings' and 'deposits'.

‘In kind’ can be interpreted as coins that a user collects while unlocking various levels and deposits them to win upgraded weapons. Similarly, there are games that award tokens, which can then be used to unlock new levels or materials. Such tokens could also come under the definition of ‘in kind’ even though it may not be the intention. There are certain additional compliances to be undertaken by an online gaming intermediary while offering online games when operating from India. The additional compliances inter alia include:

• Display a demonstrable and visible mark of registration on all online games registered by the self-regulatory body;
• Inform the user of the computer resource the rules and regulations, privacy policy, terms of service and user agreements;
• Prominently publish on its website, mobile based application or both, a random number generation certificate and a no bot certificate from a reputed certifying body for each online game offered by it;
• Identify the user and verify his identity at the time of commencement of a user account-based relationship. For KYC of the user, the online gaming intermediary will have to follow norms laid down for entities regulated by the Reserve Bank of India;
• Assign an employee of the online gaming company as the Grievance Officer. The employee must be resident in India;
• Appoint a Chief Compliance Officer, who shall be a key managerial personnel or such other senior employee of the online gaming intermediary who is resident in India, and who shall be responsible for compliances;
• Appoint a nodal contact person for 24x7 coordination with law enforcement agencies
• Enable users who register for their services from India, or use their services in India, to voluntarily verify their accounts by using any appropriate mechanism;
• Have a physical contact address in India published on its website or mobile based application, or both, for the purposes of receiving any communication addressed to it; and
• Inform its users of the change to its rules and regulations, privacy policy or user agreement immediately after such change is effected, in English or any language specified in the Eighth Schedule to the Constitution, in the language of his choice.

Q. Users of a well-liked online game can accumulate coins and use them to buy more lives or other in-game goodies. There are no real-money prizes available in the game. The information technology (intermediary guidelines and digital media ethics code) rules for 2022 have not been updated to reflect the new due diligence standards that were planned. This includes the intermediary for online gambling. Which of the subsequent claims is true?