Arryan Mohanty
Published on: October 6, 2023 at 00:46 IST
“Instead of gutting consumer protection,” Hillary Clinton said, “we should be expanding it.” The emergence of electronic commerce has generated a heightened demand for augmented consumer protection. Technological advancements have significantly transformed the landscape of business and customers in India. Consumers play a pivotal role in the commercial realm as they stimulate the demand for goods upon which the entire supply chain depends.
Consumers have adopted a propensity for enjoying convenient and comfortable purchasing options at their fingertips rather than contending with crowded stores or encountering overly assertive salespeople with an air of arrogance. The accessibility of prices on the Internet is considerably more advantageous.
Safeguarding consumer rights has become an imperative in this era of information technology. The advent of electronic commerce has brought about an abundance of legal and consumer-related challenges. Implementing novel technologies and the liberalization policy in India have profoundly affected the financial sector.
Traditional local business hubs, shops, malls, and retailers are confined to serving the population’s needs within a limited geographic scope, whereas e-commerce websites cater to a limitless world. Our way of life has undergone a dramatic shift with the advancement of technology. The advent of e-portals has greatly diminished geographical barriers, allowing for acquiring vast goods and services with a click. This undoubtedly has repercussions for local businesses. The e-commerce industry has experienced exponential growth in the twenty-first century.
The rapid expansion of e-commerce has revolutionized consumer purchasing patterns. In 2022, e-commerce sales in India amounted to $78.5 billion, projected to surge to $130 billion by 2025. Various factors, including the widespread availability of broadband internet, the proliferation of mobile commerce, and the convenience of online shopping, have propelled this expansion.
Phrenic Analysis of Misleading Advertisements
Back to the progression of advertising, which encompasses a gradual development, we are presently witnessing a profound transformation in conformity to societal requisites, convictions, and principles. Identifying the precise juncture at which misleading advertising originated proves exceedingly arduous, as its evolution reflects social alteration.
An advertisement is a proclamation that should encompass a comprehensive product depiction from the manufacturer. The moral obligation of such communication necessitates fulfillment through the most precise facts. Nevertheless, the advertisements could be more accurate and accurate, leaving the consumer with misleading portrayals of the merchandise.
The lack of rigorous legislation governing online misleading advertisements results in ineffective monitoring of online ads, leading to an exponential surge in fraudulent and deceptive acts aimed at misguiding consumers. This has culminated in a worldwide predicament for consumers who must be aware of online shopping. Dishonest merchants use their lures, such as bait-and-switch techniques and apparent strategies, to entice customers.
Most internet shoppers need to be made aware of the various types of deceptive marketing and need more understanding. This global issue has caused significant suffering, resulting in customer psychological and financial losses. There are situations where internet fraud is one of the primary causes of identity theft, a severe crime.
Issues in E-Commerce
Some of the prevalent ethical and legal challenges encountered by online purchasers during the process of acquiring goods and services through online platforms are as follows:
- Safeguarding privacy
- Guarding against identity theft, data theft, and online fraudulent schemes
- Combating online piracy
- Addressing unsolicited and deceptive electronic advertisements and spamming
- Tackling fraudulent behavior exhibited by merchants
- Preventing phishing attempts aimed at extracting personal financial information
- Managing instances of shopping cart abandonment
- Addressing the issue of negligible customer loyalty
- Dealing with vendor reluctance in accepting returns for damaged goods
- Responding to demands for challenging pricing during shipment
- Competing against other retailers and manufacturers
- Overcoming challenges posed by poor internet quality
- Implementing drip pricing due to the unavailability of complete cost information until the conclusion of the transaction
- Addressing inadequate responses to monetary refunds for dissatisfied items
- Utilizing electronic identity and authentication tools
- Addressing concerns related to dispute resolution mechanisms
- Addressing the lack of fundamental digital skills and financial literacy
- Ensuring competent jurisdiction and legal application in cross-border e-commerce transactions
Consumer data integrity and security are at risk as online users disregard the opt-in and opt-out clauses. It is necessary to reevaluate the measures taken by online auction platforms to verify the identities of buyers and sellers. The creation of a counterfeit website for a non-existent business can be accomplished relatively quickly, often with minimal contact information available, such as a free or web-based email address. The absence of real-world accountability in online transactions has resulted in the widespread success of online deception and fraud.
In certain situations, even relatively insecure websites can source primary personal information, such as bank account numbers, which can be obtained through minor hacking. Once a hacker has acquired enough knowledge to imitate someone’s online persona, they can commit various forms of online fraud.
E-commerce also faces a significant shopping cart abandonment problem, which can occur even with experienced online retailers. When a customer, whether established or potential, initiates purchasing a product online but fails to complete the transaction, it is considered an abandonment, leading to substantial monetary loss.
E-commerce and the Consumer Protection
Electronic commerce, or e-commerce, refers to exchanging goods and services utilizing computer networks, specifically the Internet. Consequently, it primarily involves business transactions conducted online. The e-commerce platform enables consumers to buy and sell without time or location constraints.
E-commerce encompasses more than simply utilizing networked technologies for conducting business. To fully transition organizations into an electronic environment, it becomes imperative to modify work techniques, reengineer business processes, and establish communication channels with business partners that transcend traditional boundaries.
E-commerce has brought about a significant transformation in how businesses operate. A notable shift is occurring from traditional paper-based transactions to fully automated enterprises.
Networking and communication across networks are crucial in the current paradigm of globalizing enterprises and markets. The field of manufacturing has entered a new era thanks to advancements in Information and Communication Technology (ICT).
The Internet has dramatically facilitated the internationalization of markets. Over the past five years, there has been a remarkable surge in electronic commerce, and this upward trend is expected to persist, if not accelerate. As more organizations incorporate online components into their operations, the line between “traditional” and “electronic” trading will become increasingly blurred in the foreseeable future.
As e-commerce expands, consumers become more vulnerable to new sorts of unethical economic practices. Because the transactions are online, the consumer can inspect the goods and their quality. In some circumstances, customers have received things different from what they had requested.
Some obstacles in e-commerce, particularly in online shopping, are the delivery of goods and the return of products if they do not match the one provided, as well as misleading advertisements. As a result, it is past time to protect the interests of consumers from technological risks. Under the new definition, a customer buys items or receives services in any way, including electronic mode, teleshopping, direct marketing, or multilevel marketing. Therefore, anyone who buys a product or utilises or hires services online is considered a consumer.
At this juncture, it is essential to highlight the differentiation between cyber-consumer redress and cyber-consumer protection. Redress, provided by any of the legal models being considered here, enables a cyber-consumer who has been wronged in a cyber-consumer transaction to seek compensation from a merchant for non-delivery, incorrect delivery of goods, or fraudulent behavior.
The central focus is on redress rather than the broader but interconnected issue of cyber-consumer protection. Cyber-consumer protection encompasses a more general concept that includes concerns such as regulation during the bargaining phase, regulation of contract terms, and facilitating access to justice.
Consequently, redress serves as an alternative for consumers to address their grievances, while protection is a proactive measure that shares a delicate balance with redress. For example, there is better protection through uniform and implicit conditions. In that case, there may be fewer disputes and less expensive because there will be no need for counsel on private international law principles based on existing law.
Legal Framework on Consumer Protection Laws in a Global Perspective
Several nations possess their legal framework for electronic commerce, and some implement regulatory legislation, albeit these differ across countries. For instance, El Salvador, Mexico, and Peru rely on a comprehensive civil law system to guarantee the seamless functioning of electronic commerce. Conversely, countries including Chile, Colombia, France, the Russian Federation, and the United States have established specific provisions within their Consumer Protection laws to govern electronic commerce exclusively.
The Organisation for Economic Cooperation and Development (OECD)’s proposal delineates the fundamental characteristics necessary for the effective operation of electronic commerce and the protection of online consumers. Moreover, it encompasses two novel provisions on privacy and security threats, payment protection, and product safety.
The modified recommendation from the OECD Council regarding the regulations overseeing the safeguarding of privacy and the transfer of personal data across borders encompasses foundational principles including but not limited to the gathering, restriction, quality assurance, specification of purpose, security measures, protective measures, involvement of individuals, liability, execution, and compatibility.
The efficiency of E-Commerce holds great significance in maintaining economic growth, enhancing public welfare, and fostering social cohesion. It assumes a crucial role within the current framework of the multilateral trading system. The exponential and extensive expansion of E-Commerce will facilitate the achievement of essential economic development objectives, such as poverty alleviation and education, particularly for developing nations.
To establish a high standard in this digital era, which benefits from the rapidly growing influence of E-Commerce, World Trade Organization (WTO) members are expected to collaborate to create a global policy framework that fortifies the economic sphere from an international standpoint.
WTO members prioritize the subsequent conditions to accomplish their goals:
Trade liberalisation of E-Commerce related sectors
The liberalization of sectors that enable E-Commerce facilitates the establishment of an authentic global atmosphere that enhances the convenience and benefits of consumers. Furthermore, the vital aspect of promoting international coordination among industries is essential for advancing trade liberalisation.
Principles for domestic regulations
The principles set forth by GATT, GATS, TRIPS, and OECD determine the establishment of the nature and qualities. To ensure the smooth functioning of domestic and commercial activities, it is essential to adhere to certain general principles such as transparency in the dissemination of all measures, non-discriminatory treatment, avoidance of unnecessary trade restrictions, application of globally harmonised rules of regulations and standards, as well as recognition of the equivalence of foreign regulatory measures.
Creating a pro-competitive environment in the E-Commerce market
An arena where local and global business agencies can access a worldwide market should be created, with equal opportunities for entrepreneurs in established and developing countries to prosper in E-Commerce. The ultimate goal is to achieve material competition laws and cyber consumer protection, which is ensured by indirect cyber consumer protection where the market is assumed by competition law, specifically unfair competition dispositions and other rules aimed at achieving a liberalised and genuine competition market. The free availability of basic facilities, regard for patent issues, exclusive practices in cyberspace, and a global framework for collaboration, among other things, are vital aspects that can enable a pro-competitive environment in the e-commerce-linked industry.
Cooperation with relevant International Organisations
International organisations such as WIPO, UNCITRAL, ISO, Hague Conference on Private International Law, OECD, and other entities are persistently observing the implementation of global regulations with a specific focus on matters about Intellectual Property Rights (IPR), Contract laws, digital signature authentication, and other E-Commerce related concerns. The World Trade Organization (WTO) is also allocating increasing attention and exerting significant endeavors to tackle challenges encountered in E-Commerce. The WTO endeavors to synchronize the applicable current rules for international entities while ensuring that national legislation and regulations are adequately represented.
Capacity building of developing countries
The affluent nations are anticipated to actively seek the involvement of the World Trade Organisation (WTO) in attaining global equality while being mindful of emerging economies’ diverse circumstances and requirements. The developed constituents are obliged to partake in technological cooperation to augment the utilization of electronic commerce (E-Commerce) in developing nations and distribute the advantages of worldwide E-Commerce among these developing nations.
Promotion of private sector initiatives
To establish an accurate and trustworthy policy in the realm of global commerce, each private sector entity must take responsibility for its regulation. This self-regulation should be fortified through the support and guidance of public policies. Governments must actively engage in this endeavor by collaborating with private-sector-led forums, such as GBDs (Global Business Dialogue on E-Commerce), GIIC (Global Information Infrastructure Commission), and various consumer organizations. These forums should carefully evaluate a system that effectively represents the perspectives of developing-country industries and consumers.
The legal framework governing e-commerce websites in India
The enactment of the Information Technology Act, 2000 (IT Act) in India was intended to implement the Model Law on E-Commerce (MLE) adopted by the United Nations Commission on International Trade and Law (UNCITRAL). India has ratified the MLE. The IT Act establishes a regulatory framework for Internet enterprises and prescribes penalties for violations.
It also outlines the procedure for digital record authentication, digital signatures, and the obligations of certifying authorities. Additionally, it delineates the process for adjudication and the authority for appeals in cases of data theft. The Act provides further definitions for cybercrime and specifies the corresponding punishments. However, it fails to incorporate any safeguards to protect the interests of consumers who may have grievances regarding their online purchases.
Without specific legislation governing transactions conducted on e-commerce websites, the Consumer Protection Act of 1986 served as the sole recourse for buyers and consumers in addressing any grievances related to online transactions.
However, this Act, which needed to be updated and updated, no longer aligned with the advent of e-commerce websites and the increasing number of consumers engaging in online transactions. Recognizing the limitations of the 1986 Act in addressing the requirements of the digital era, the Central Government amended it with the Consumer Protection Act 2019, which received presidential approval in August 2019.
Key features of the Consumer Protection Act, 2019
Expanded the definition of “Consumer”
- The concept of consumer has been extensively interpreted to encompass individuals who engage in online transactions.
- The 2019 Act defines a consumer as an individual who acquires products or services in exchange for a consideration that is either entirely, partially, or promised to be paid.1
- However, it is essential to note that this definition excludes goods and services purchased for resale or any other business-related intent.
- The explanation within the 2019 Act explicitly asserts that the terms “purchase any goods” or “acquire any services” encompass online transactions conducted through electronic means and telemarketing and teleshopping activities.
- Consequently, a consumer who orders based on a teleshopping offer and experiences dissatisfaction with the received product can complain within the consumer forum.
Also Read: Consumer Protection Amendment, 2019
A broad scope of the term “deficiency”
- The definition of “deficiency” under the 2019 Act has been expanded to encompass acts of negligence, omission, or conduct that result in consumer loss or injury.2
- Additionally, it explicitly denotes that withholding vital information from customers would be considered a deficiency.
- This broadening of the term is especially pertinent in light of the widespread online shopping practices among consumers.
- If manufacturers, sellers, or e-commerce platforms conceal crucial information, such as the country of origin, it could significantly impact consumer decision-making.
- To illustrate, let us consider a scenario where a consumer purchases an electronic device online, only to discover that the e-commerce platform neglected to disclose the origin of the goods.
- Knowledge of the country of origin is of utmost importance to the consumer, and if this information is purposefully suppressed or concealed by the e-portal, the consumer would have valid grounds to raise concerns about the deficiency resulting from the withholding of critical information about the country of origin.
Includes e-commerce
- The concept of “e-commerce” is further elucidated in the 2019 Act as purchasing or vending commodities or services, encompassing digital entities, through a digital or electronic network.3
- The expression “electronic service provider” is employed in the 2019 Act to specify an individual who furnishes technologies or procedures to enable a merchant to partake in advertising or vending commodities or services to a consumer, and this encompasses any online marketplace or online auction website.4
- With the embrace of online clientele, it constitutes a remarkable convenience for those who engage in digital transactions to possess a platform to voice their concerns in the event of a deficiency in service or product.
Defines endorsement
- Section 2(18)5 of the Consumer Protection Act 2019 defines endorsement, wherein it is described as the communication, verbal expression, exhibition, or portrayal of the identity, autograph, resemblance, or other identifiable attributes of an individual.
- In addition, it encompasses the portrayal of the name or seal of an organization or institution that conveys to the consumer that the endorsement reflects the endorsing individual’s perspective, belief, or experience.
- This provision can address the issue of websites engaging in deceitful and misleading advertising practices concerning the sale of products or services.
- Companies that make implausible assertions, such as achieving significant weight loss within a short time frame, transforming garments to a pristine white color akin to snow, or altering skin complexion from dark to fair, should be actively avoided.
- Numerous advertisements encountered across television, newspapers, and social media platforms feature renowned personalities endorsing these products or services; however, these personalities will now exercise an added level of caution before making any recommendations.
- E-commerce platforms must exercise diligence when listing and endorsing their offerings, as they may be implicated in legal proceedings.
Introduces product liability
- By introducing the “Product Liability” principle, individuals can register grievances with the product manufacturer, the entity responsible for providing the product or service, and the product vendor, which may encompass websites facilitating electronic commerce.6
- The notion of goods liability permits individuals to pursue legal action against defective merchandise.
- This concept of product liability holds particular significance for consumers who engage in online transactions, as they are limited to only observing the goods virtually, which may result in disparities between the actual product and its online representation.7
- These disparities could manifest in variations in texture, color, size, or other product characteristics.
- For instance, if a consumer were to order a chandelier under the assumption that it would be identical in size to its online portrayal, but upon receiving the product, discovers that it is more minor than depicted on the website and finds that the provided measurements were erroneous, the concept of product liability becomes applicable.
- In this scenario, the consumer can pursue legal claims against the manufacturer and the electronic commerce website, as they are accountable for delivering a defective product.
Addresses misleading advertisement
- Recognising the issue of advertisements that make dishonest and imaginary assertions and deceive unsuspecting consumers, the 2019 Act defines a “misleading advertisement” as an advertisement of a product or service that provides an inaccurate depiction, false assurance regarding the nature, essence, quality, or quantity, and implies or explicitly expresses a representation that, if uttered by the manufacturer, seller, or service provider, would constitute an unjust trade practice.8
- False and deceitful advertisements are subject to penalties as stipulated by the Act.
- Due to the measures taken against such advertisements, product manufacturers and producers might need to exercise greater caution regarding the content and commitments conveyed in their advertisements.
Central Consumer Protection Authority (CCPA)
- Including the Central Consumer Protection Authority (CCPA) within the 2019 Act brings forth a regulatory body responsible for safeguarding consumer rights as a collective entity.
- The Central Government will establish the CCPA and possess the authority to oversee matters related to violations that harm the general public’s and consumers’ interests.
- Moreover, it will actively promote, safeguard, and enforce the rights of consumers as a unified group.
- In the event of disagreement with a ruling issued by the CCPA, individuals may file an appeal with the National Commission within 30 days of receiving the verdict.
- To facilitate its operations, the CCPA will contain an investigative division headed by a Director-General tasked with conducting inquiries and investigations as directed by the CCPA under the provisions of this Act.
- Additionally, the CCPA could exercise its jurisdiction to mandate that all e-commerce platforms indicate the country of origin for every product showcased on their websites.
- In cases where websites fail to adhere to this requirement, the CCPA possesses the prerogative to request that all e-commerce portals make publicly accessible the mechanism for addressing consumer grievances through their websites, inclusive of the name, designation, and contact details of the designated officer responsible for handling such grievances.
Alternate Dispute Mechanism
- The 2019 Act introduces the concept of “Mediation” as an alternative method for resolving disputes to reduce the length of conflicts and enable parties to engage in discussions and negotiations without resorting to formal channels.9
- Furthermore, the Act outlines certain situations in which mediation may not be appropriate, specifically cases where the issues at hand have the potential to affect a significant number of individuals, such as instances of medical negligence leading to death or severe harm.10
- The growing number of online consumers could contribute to increasing complaints.
- By utilising the mediation platform, consumers could save valuable time, money, and energy, making it a convenient and efficient means of resolving their grievances across all consumer segments.
Jurisdiction
- Compared to the 1986 Act, the 2019 Act explicitly asserts that the grievance can presently be initiated in a district commission within the jurisdiction’s local boundaries where the complainant resides or personally engages in remunerative labour.
- This is in addition to filing in the jurisdiction where the opposing party actually or voluntarily resides, conducts business operations, maintains a branch office, or personally engages in remunerative labor.
- This functionality is advantageous for online consumers as it allows them to submit grievances in a location proximate to their domicile, place of employment, or business activities.
- Undoubtedly, this notion constitutes a consumer-oriented attribute that confers benefits upon all categories of clientele.
- The monetary jurisdictions of the District, State, and National Commissions have been expanded.
- The District Commission possesses the prerogative to examine complaints on deficiencies in products or services for which the consumer has disbursed an amount of up to one crore rupees.
- The State Commission is empowered to address grievances with a value surpassing one crore but falling short of ten crores.
- Controversies involving services or products valued at more than 10 crores may be presented before the National Commission.
Other changes in the Consumer Protection Act 2019
- If an individual expresses dissatisfaction with the decision made by the District Commission and seeks to contest it by appealing to the State Consumer Commission, an extension is granted to submit an appeal, increasing the time limit from 30 to 45 days.
- The 2019 Act, specifically Sections 49(2)11 and 59(2),12 confers upon the State Commission and the National Commission, respectively, the authority to designate any contractual conditions deemed unjust to consumers.
- It remains a viable option to file a subsequent appeal to the National Commission on Disability Rights and Rehabilitation (NCDRR).
- Section 7113 of the 2019 Act bestows powers of execution, as outlined in Order XXI of the Civil Procedure Code of 1908, subject to the restrictions outlined in the aforementioned section.
Impact of COVID-19
The onset of the COVID-19 pandemic, followed by an unparalleled nationwide lockdown, prompted consumers to turn towards electronic commerce platforms. Due to the social distancing measures implemented due to COVID-19, many individuals prefer to engage in online shopping. These e-commerce websites offer a wide array of products, allowing for quick verification of comparative costs with a simple click.
Customers can also assess the experiences of other users who have previously purchased the products, enabling them to search for superior alternatives before purchasing. However, it has come to light that web portals must provide sufficient information regarding the country of origin when products are purchased online. Whereas physical assets permit a thorough examination of product details, such crucial information is not readily available when relying on online transactions. As a result, online consumers expressed outrage towards e-portals for withholding vital information about the country of origin.
In light of the significance of displaying such information as mandated and to support the Central Government’s “Atma Nirbhar Bharat” (Self-reliant India) policy, which encourages consumers to prioritize products made in India, the Government Procurement Portal has made it mandatory for all e-commerce platforms to disclose the country of origin.
Writ Petitions have been filed in various High Courts and the Supreme Court, seeking orders that require web portals to display the country of origin. Several web portals, including Flipkart, have already started disclosing the nation of origin for all products, while Amazon India has requested that sellers provide information regarding the country of origin for their product listings.
If e-commerce websites persist in concealing the country of origin for products sold online, consumers can file complaints with the relevant consumer forums for concealment or suppression of essential information.
Consumer Protection (E-Commerce) Rules, 2020
The enactment of the Consumer Protection (E-Commerce) Rules, 2020 follows the safeguarding of consumer entitlements and thoughtfully integrates pertinent information about e-commerce intermediaries while considering the interests of the consumer and the product or service provider. It should be emphasized that these regulations are imperative rather than merely advisory. They can be enumerated as follows:
- Primarily, the e-commerce entity, regardless of its identity, must apprise the consumer/purchaser about the provisions for the return, refund, or exchange of the intended product or commodities. Additionally, they must furnish details regarding the product’s warranty and guarantee, the estimated delivery time, the accepted modes of payment, the security measures adopted for payment collection, the recourse mechanism in the event of default, and the product’s country of origin.
- If a consumer lodges a complaint regarding a product or service, these platforms must acknowledge the grievance within 48 hours and resolve the matter within one month from receipt. Furthermore, each e-commerce enterprise must establish a designated officer to address consumer grievances.
- If a consumer procures a product online and the delivered item is either damaged, defective, delayed, or fails to conform to the description provided on the website, the consumer possesses the right to initiate a return process. It is essential to note that no seller holds the prerogative to decline the acceptance of returned goods, withhold the provision of services, or impede the process of issuing refunds.
- E-commerce enterprises are strictly prohibited from manipulating the prices of their goods or services with the intention of profiteering. The rules explicitly forbid e-commerce companies from engaging in such practices.
A Conceptual Framework on Jurisdictional Aspects to Resolve Disputes Arising in E-commerce
E-commerce and the protection of cyber consumers face a unique and challenging situation when dealing with e-commerce disputes on an international level. The legal framework is established by applying standard rules to determine which jurisdiction should handle these disputes.
The Rome Agreement of 1980, which focuses on the relevant law in contractual matters, and the Brussels Convention, now known as the 44/2001 European Rules on International Jurisdiction, are applicable within the European system. These legal texts contain provisions on conflicts of laws that aim to protect customers by allowing them to choose the jurisdiction of their homes frequently. It is the responsibility of the courts to apply these texts to specific issues that arise in the context of electronic commerce.
Based on national reports, the main challenges lie in identifying the activities in violation and determining whether they pertain to a specific market. The difficulties in defining these scenarios are not limited to national borders, and the lack of consistency may lead to skepticism regarding the effectiveness of traditional methods in protecting cyber consumers.
The rise of unfair commercial practices on the internet necessitates appropriate responses from governments, which should focus on implementing specific laws for internet commerce as per their respective legal systems.
To establish apparent authority over e-commerce issues, member nations should rely on international treaties or reciprocal enforcement agreements. In terms of authentication, these agreements often consider the connections that the foreign entity has within the interests of the sovereign state.
Conclusion
In the era of technology, it is imperative to safeguard the interests of consumers. The critical elements for ensuring adequate online consumer protection are an informed consumer and easy access to relevant laws that can address any issues arising from electronic transactions. Individuals must be self-reliant in protecting their interests.
Adequate product information is vital for e-consumers as it enables them to comprehend the advantages and risks associated with a specific transaction. By being aware of such information, consumers can avoid subsequent disappointments and prevent potential disputes. Moreover, consumers often encounter legally binding terms and conditions that they may need to comprehend fully.
This lack of understanding puts them at a disadvantage. Dishonest practices by merchants can further exacerbate the situation, particularly concerning disclosing information regarding cancellation and return policies, including the timeframe within which such actions can be taken. If there is no option for cancellation, return, or refund, this should be communicated before the completion of the transaction.
The legal framework should provide consumers with fair and affordable avenues for resolving disputes and seeking compensation. Given these circumstances, it is essential to enact legislation that safeguards the interests of online customers. Furthermore, member states should amend E-Commerce legislation to address the evolving challenges of the digitalised era.
Successful regulation and enforcement are crucial in enhancing the online consumer experience and protecting individuals from any harm caused by exploitative practices in E-Commerce.
The Consumer Protection Act 2019 has been formulated to accommodate a diverse range of consumers, encompassing those who engage in online transactions, teleshopping, or traditional offline purchases.
The Act has integrated appropriate measures to mitigate the prevalence of misleading advertising. Moreover, the legislation has duly acknowledged the demands of online consumers by instituting a more expeditious dispute resolution process, along with an inventive mechanism for resolving conflicts through mediation.
Celebrities, websites, and e-commerce industries are advised to exercise utmost caution before endorsing products or services. Additionally, the Act has delineated the boundaries of territorial and monetary jurisdiction. Henceforth, we must observe and assess the implementation and efficacy of the robust 2019 Act in practice.
References
- palarch.nl/index.php/jae/article/download/
- Consumer_protection_Act_2019_and_e_commerce_in_India
- https://link.springer.com/article/10.1007/s10551-021-04884-3
- https://www.atlantis-press.com/proceedings/iclhr-20/125956181
- consumer-rights-in-the-digital-era-8065.asp#google_vignette
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3489753
Endnotes
1. The Consumer Protection Act, 2019, s.2(7), No.35, Acts of Parliament, 2019 (India)
2. The Consumer Protection Act, 2019, s.2(11), No.35, Acts of Parliament, 2019 (India)
3. The Consumer Protection Act, 2019, s.2(16), No.35, Acts of Parliament, 2019 (India)
4. The Consumer Protection Act, 2019, s.2(17), No.35, Acts of Parliament, 2019 (India)
5. The Consumer Protection Act, 2019, s.2(18), No.35, Acts of Parliament, 2019 (India)
6. The Consumer Protection Act, 2019, s.2(34), No.35, Acts of Parliament, 2019 (India)
7. The Consumer Protection Act, 2019, s.83, No.35, Acts of Parliament, 2019 (India)
8. The Consumer Protection Act, 2019, s.2(28), No.35, Acts of Parliament, 2019 (India)
9. The Consumer Protection Act, 2019, s.2(25), No.35, Acts of Parliament, 2019 (India)
10. The Consumer Protection Act, 2019, s.75, No.35, Acts of Parliament, 2019 (India)
11. The Consumer Protection Act, 2019, s.49(2), No.35, Acts of Parliament, 2019 (India)
12. The Consumer Protection Act, 2019, s.59(2), No.35, Acts of Parliament, 2019 (India)
13. The Consumer Protection Act, 2019, s.71, No.35, Acts of Parliament, 2019 (India)