Intermediary Liability Under Section 79 IT Act

Digital platforms—whether social media, e-commerce, fintech, or online marketplaces—operate in a legally sensitive environment. Understanding intermediary liability under Section 79 of the Information Technology Act, 2000 is essential for anyone managing or building online platforms in Patna, Bihar. As digital transactions and online communications grow rapidly in the region, compliance with IT laws has become vital for avoiding penalties, takedown notices, and litigation.
This comprehensive guide explains the scope of intermediary liability, compliance steps, legal foundations, and how businesses in Patna can secure their operations with proper policies and legal support.

What Is Intermediary Liability Under Section 79 IT Act?

Section 79 of the IT Act provides a “safe harbour” to intermediaries—meaning they are not liable for user-generated content if they comply with statutory requirements.

Who Is an Intermediary?

The Act defines intermediaries as entities that receive, store, transmit, or provide services related to third-party information. This includes:

Social media platforms
E-commerce websites
Digital payment platforms
Search engines
Cloud services
Online marketplaces
Messaging platforms

The Safe Harbour Principle

The safe harbour protects intermediaries only if they:

Do not initiate the transmission
Do not select the receiver
Do not modify the information
Comply with government takedown orders
Maintain proper due-diligence policies

This protection is conditional, meaning non-compliance can result in full legal liability.

Legal Basis Under Indian Law

Section 79 of the IT Act is supported and interpreted through several legal instruments and judicial decisions.

Statutory Foundations

Section 79(1): Grants exemption from liability.
Section 79(2): Conditions for claiming the exemption.
Section 79(3): Exemption lost if intermediary fails to act on unlawful content upon receiving actual knowledge or government direction.

IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

These rules define:

Grievance redressal mechanisms
User due-diligence
Content takedown timelines
Appointment of compliance officers
Monthly compliance reports for significant platforms

Key Court Interpretations

Shreya Singhal v. Union of India (2015):
The Supreme Court held that intermediaries must act only upon government or court orders, not on private complaints.

Why Understanding Section 79 Matters in Patna

With Patna becoming a rising hub for e-commerce startups, news portals, and digital services, compliance with IT laws is increasingly crucial.

Business Expansion & Legal Risks

Companies in Patna often scale quickly, handling large volumes of user data. Without proper Section 79 compliance, they may face:

Criminal complaints
Civil damages
Platform takedown notices
Government investigations

Local Market Conditions

Patna’s digital economy is driven by:

Startups
Educational portals
News aggregators
Online grocery and logistics platforms

These entities must establish strong digital compliance frameworks to maintain operational continuity.

Compliance Steps for Intermediaries

To benefit from safe harbour protection under Section 79, intermediaries must follow a structured compliance process.

Step-by-Step Process

Identify Your Intermediary Category
Determine whether you are a basic intermediary or a significant social media intermediary (SSMI).
Draft and Publish User Agreements & Policies
Include terms of use, privacy policy, and content guidelines.
Appoint Key Personnel (for SSMIs)
- Chief Compliance Officer
- Nodal Contact Person
- Resident Grievance Officer
Set Up a Grievance Redressal System
A 24×7 contact system may be required.
Implement Active Monitoring Measures
Though not intrusive monitoring, platforms must deploy automated tools to identify harmful content as permitted by law.
Respond to Government Orders Promptly
Takedown within prescribed timeline.
File Compliance Reports (where applicable)
Monthly or quarterly, depending on platform type.

Documents and Policies Required

Privacy Policy
Terms of Service
Acceptable Use Policy
Grievance Redressal Policy
Content Moderation Policy
User Verification Procedures (if applicable)
Data Retention and Log Records
Standard Operating Procedure (SOP) for responding to government notices
Appointment letters for compliance officers

Essential Legal Drafting & Clauses

For effective compliance, intermediaries must incorporate robust clauses in their legal documents.

Key Clauses

Indemnity Clause: Protects the intermediary from user violations.
Content Removal Clause: Explains conditions for takedown.
Jurisdiction Clause: Courts of Patna may be chosen for dispute resolution.
Limitation of Liability Clause: Restricts intermediary liability within legal limits.
User Verification Clause (for SSMIs): Outlines voluntary verification systems.

Importance of Legal Review

Policies must reflect the latest Indian IT rules and should not create obligations beyond what the law mandates.

Post-Compliance Responsibilities

Continuous Monitoring

Although intermediaries are not required to monitor proactively, they must act on:

Court orders
Government notifications
Explicitly illegal content upon verified notice

Data & Log Retention

Logs must be maintained for a prescribed period, often 180 days or as directed.

Regular Policy Updates

Legal and regulatory changes must be incorporated periodically, preferably reviewed by an advocate.

Benefits of Proper Compliance

Legal Protection

Section 79 compliance shields platforms from liability for user-generated content.

Business Credibility

Startups and digital service providers in Patna gain trust from consumers and investors.

Reduced Litigation Risk

Timely compliance prevents criminal charges, FIRs, and injunctions that may otherwise disrupt business.

Why Choose Legal Bihar

Legal Bihar, under the guidance of Advocate Tabish Ahmad, provides specialised IT law services in Patna, helping businesses navigate:

Intermediary compliance
Digital policy drafting
IT Act advisory
Response to takedown notices
Assistance during government investigations

With an in-depth understanding of Indian cyber law and local regulatory practices in Bihar, the firm ensures accurate, practical, and business-friendly solutions.

About the Author – Advocate Tabish Ahmad

Advocate Tabish Ahmad (B.A. LL.B., LL.M., Diploma in Cyber Law – GLC Mumbai) is a Certified Cyber Law Practitioner and practising Advocate at the Patna High Court. He specializes in Cyber Crime, GST Litigation, and Tax Appeals, with extensive experience in representing clients before judicial and quasi-judicial forums.

He serves as President of the Cyber Lawyers Association and is a Member of the Advocates’ Association, Patna High Court. As a Mentor at the Indian Tax Academy and JurisCrack, he guides young lawyers and students in cyber and tax law practice.

Author of several books on Cyber Crimes, Taxation, and GST, Advocate Tabish Ahmad is recognized for his practical insights on digital law, data privacy, and cyber fraud defence.

Advocate Tabish Ahmed — Advocate Tabish Ahmad – Cyber Crime Lawyer

FAQs

1. What is intermediary liability under Section 79?

It refers to the conditional protection granted to digital platforms for content posted by users. Compliance with the IT Act and rules is essential.

2. Do all platforms need a compliance officer?

Only significant social media intermediaries must appoint specific officers. Others must still maintain basic grievance systems.

3. How quickly must intermediaries act on takedown notices?

Timelines vary, but usually platforms must respond within 24 hours and comply fully within 72 hours of receiving an official order.

4. Does Section 79 apply to small startups in Patna?

Yes. Any platform hosting user data or content is considered an intermediary under the Act.

5. Can intermediaries be held criminally liable?

Yes, if they fail to meet due-diligence requirements or ignore government directions.

6. Is it mandatory to monitor all user content?

No. Mandatory proactive monitoring was restricted by the Supreme Court in Shreya Singhal.

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Intermediary Liability Under Section 79 IT Act — A Complete Legal Guide