The law panel said though the country has every reason to celebrate its news media, as society evolves, new challenges are constantly thrown up that require consideration.
"Technology has expanded our horizons, but also brought with it new concerns. Recent events related to the news media, such as the proliferation and subsequent curbing of social media, the paid news phenomenon, fake sting operations, trial by media, breach of privacy pose a set of anxieties," it said.
Section 66A of the IT Act makes it a punishable offence to send messages that are offensive or false or created for the purpose of causing annoyance or inconvenience.
"Since no guideline has been laid down for identification of offensive information, the wide amplitude of the provision has often been used for politically motivated arrests," it said.
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On paid news, it pointed out that though guidelines are present both in print and broadcast media that call for clear demarcation of advertisement and news content, these are either subverted or ignored altogether.
"Though the freedom of speech and expression, as guaranteed in the Constitution of India, empower the press to disclose information vital to public interest, it often results in intrusion of privacy," it said.