A parliamentary panel is advocating for a review of the "safe harbor" protections granted to social media intermediaries under the IT Act, with the goal of combating the increasing proliferation of fake news and misinformation. This recommendation was highlighted in the 254th report of the parliamentary standing committee on home affairs, titled 'Cyber Crime - Ramifications, Protection and Prevention,' which was presented to Parliament.

The existing "safe harbor" protections, as defined in Section 79 of the IT Act, shield intermediaries from liability for the actions of their users, provided they adhere to government guidelines. However, the committee has observed instances where social media intermediaries fail to cooperate with law enforcement agencies and legal provisions by not promptly removing unlawful content, including manipulated videos, fake profiles, misinformation, and content promoting violence. This inaction potentially abets criminal activities and undermines public order.

To address these concerns, the parliamentary panel has urged the Ministry of Electronics and Information Technology (MeitY), along with the home and law ministries, to amend the IT Act to ensure social media platforms are legally accountable when they disregard takedown orders. The committee has suggested implementing graded penalties, including fines and even suspension, for repeat violations, while ensuring due process and appeal rights to protect free speech.

The panel has also recommended a sweeping framework that mandates watermarks on all social media content, particularly targeting deepfakes and AI-altered imagery, to help users distinguish legitimate content from manipulated media. The committee has called on MeitY to define technical standards and appoint a coordinator under CERT-In to oversee detection alerts and enforcement.

Furthermore, the committee is advocating for stricter rules for Over-The-Top (OTT) platforms like Netflix, Amazon Prime, and Hotstar. They propose setting up a panel of experts to review flagged content after release, frame cultural guidelines, and suggest penalties for violations. The panel believes that these platforms must be more accountable for obscene or harmful material.

The parliamentary standing committee has flagged serious concerns over the Safe Harbour provisions applicable to social media intermediaries in its draft report on fake news. The report provided a detailed analysis of how the existing regulatory framework has failed to keep pace with the growing menace of fake news, particularly on platforms like Facebook, X, Instagram, YouTube, and WhatsApp. The Committee called for a mandatory fact-checking mechanism and internal ombudsman in all print, digital and electronic media organisations.

These recommendations reflect growing concerns about manipulated media, fake news, and the lack of accountability across digital platforms. By requiring watermarking, stricter enforcement, and casting a more critical eye on intermediaries and OTT operators alike, lawmakers aim to protect public discourse and rein in technological exploitation. The committee emphasizes that no intermediary should hide behind legal immunity under Section 79 of the IT Act and has suggested periodic reviews of these safe harbor protections.