As a matter of practice, e-commerce entities used to enter into a standard contract with a seller (before onboarding such seller on its platform) and such a contract was usually in a form of a click wrap agreement which set out the terms and conditions governing the sale of goods and services by such seller on the e-commerce entitys marketplace. Sri Krishna College of Arts and Science; Download full-text PDF Read full-text. E-commerce is forecast to grow to US$7.29 billion by the end of 2022. In order to weed out unscrupulous sellers, the E-commerce Rules have made it mandatory for the sellers to disclose certain prescribed information to the marketplace which information is required to be displayed on the marketplace platform. As businesses across Canada and around the world struggle to manage the fallout from COVID-19, e-commerce looks to be one area of commercial activity that is set to remain in strong demand. An overview of these obligations is as follows: The E-commerce Rules prescribe that it is now mandatory for a seller to enter into a written contract with an e-commerce entity in order to undertake any sale of goods and services on the platform of such e-commerce entity. The obligation of appointing a grievance redressal officer has also been extended to the sellers. Having to display a very popular trust seal (like those offered by. Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. January 2011; Authors: Julian Gnana Dhas Chandran. Price of the goods or services offered cannot be manipulated by the e-commerce entities to gain unreasonable profits. goldsmith et al. That share varies from 78% in Europe to 52% in Africa and 71% in the Americas. First, our country's e-commerce sector has witnessed exponential growth in . Consumer Protection: Rules made under Consumer Protection Act, 2019. 6. The Consumer Protection (E-Commerce) Rules, 2020 is the latest addition to the consumer protection regime in India. Among these Data Privacy Act No. E-commerce brings forth a tougher business competition, leads to creation of new marketplaces, faster transactions, and rapid growth in technologies. Authors are invited to submit their research paper in the journal. Related consumer protection laws . Simultaneously, the Department for Promotion of Industry and Internal Trade (DPIIT) is to present another draft of the National E-Commerce Policy that shall be put to public debate. The Consumer Protection (Ecommerce) Rules 2020 attempts combine the teeth of the Consumer Protection Act 2019, Indian exchange control laws (IEC Regulations), and the Information Technology Act 2000, to ensure fair play in technology and data-driven e-commerce environment. The internet makes it easy for us to access data and news. Therefore, the discretion in respect of classifying consumers into different classes or sellers into different categories seems to be with the e-commerce entities and (in practice) may be driven by parameters such as volume of sales/purchase, period of association and type of products/services), subject to the rider that same treatment has to be ensured to all consumers or sellers (as the case may be) forming part of a particular class. The Central Government has notified the Consumer Protection (E-Commerce) Rules, 2020 ('rules'), in exercise of its powers conferred by sub-clause (zg) of sub-section (1) of section 101 of the Consumer Protection Act, 2019 ('Act'). Your browser is currently blocking notification. Today's digital consumers have access to an unprecedented choice of goods and services. The policy shall cover more concepts, rights . Always use a secure browser. The Ministry of Consumer Affairs, Food and Public Distribution has, on July 23, 2020, notified the Consumer Protection (E-Commerce) Rules, 2020 (" Rules ") under the Consumer Protection Act, 2019 (" Act "), with an intent to prevent unfair trade practices in e-commerce and protect interests and rights of consumers. (1) In these rules unless the context otherwise requires, (a) "Act" means the Consumer Protection Act, 2019 (35 of 2019); The Federal Trade Commission (FTC) has established consumer protection regulations . A responsive customer service available 24/7 is my number one feature that a good consumer protection service company should provide. 4. In the past, there have been instances where certain e-commerce entities have witnessed alleged claims of price manipulation involving deep discounts being offered on certain products that were originally listed at prices which were more than the MRP of such products. 462(E).In exercise of the powers conferred by sub-clause (zg) of sub-section (1) of section 101 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby makes the following rules, namely: - Rule 1. These Rules primarily envisages the duties & liabilities of ecommerce entities involved in marketing and . 5. Make sure that your browser complies with the industry security standards, such as Secure Sockets Layer (SSL) or Secure Electronic Transaction (SET). Duties of e-commerce . ECCPG Guidelines determine . 59/16, 4th Floor, Jujhar Tower RD Marg, Kalkaji, New Delhi, Delhi 110019, National Consumer Disputes Redressal Commission, District Consumer Disputes Redressal Commission. No cancellation charges can be levied on a consumer, even where a consumer wants to cancel a confirmed order, unless similar charges are also borne by the e-commerce entity if it unilaterally cancels an order placed by a consumer for any reason whatsoever. Instead of prescribing an outer time limit for processing refund payments, the E-commerce Rules have provided flexibility to within the overall contour of a reasonability test. Therefore, all types of e-commerce entities whether operating on the inventory model or the marketplace model including e-commerce platforms that are engaged in providing services or renting/leasing goods will fall within the meaning of e-commerce entity as defined under the E-Commerce Rules and consequently will be subject to the legal regime prescribed under the Consumer Protection Act and the E-Commerce Rules. E-Commerce-Consumer Protection Model. Given the population and number of consumers, such officer is going to have a herculean task in acknowledging the complaints in the given time frame, and even if the former is complied with, redressal of complaints in one month would certainly be a challenging task. For any further queries or follow up, please contact Sarthak Sarin at [emailprotected]. This book advances the international debate on the development of e-commerce with focus on emerging ASEAN economies. E-commerce, Consumer Protection Agency, Consumer Protection Act Abstract As the world no longer has boundaries with everyone being connected to the internet, we can access information from other parts of the world in an instant, without having to go anywhere. Some mature people memorize the time they were young and wished for a more comfortable and easy shopping alternative to buy what they needed much faster and in a manner to avoid the crowded stores and the irritating saleswoman with their ace attitude. Unleashing E Commerce For South Asian Integration. This paper, therefore, carries out a comparative study of the legal framework for e-commerce and consumer protection in Malaysia and Nigeria respectively. The E-Commerce Rules prescribe an elaborate framework for ecommerce entities to oversee and prevent any unfair trade practices or misleading advertisements on part of the sellers on their platform and obligate them to ensure that they do not engage in any price manipulation and have in place adequate internal mechanism for the redressal of complaints by consumers. While these measures would certainly act as a deterrent for the sellers, from an implementation perspective, since the onus is also on the ecommerce platforms to ensure compliance under the E-commerce Rules, it will certainly become a challenging and costly task for the marketplaces, which in turn would result in an increased reliance on contractual indemnity arrangements by the marketplaces. The digital revolution has propelled consumers to the forefront of international trade. Nevertheless, with the requirement to identify and designate a senior official for overseeing and ensuring compliance under the consumer protection law, issues regarding the personal liability of such designated officials and protection from monetary exposures/risk of litigation will now assume more importance whilst such employees are negotiating their employment contract/engagement with the e-commerce marketplaces. Disposition 270/2020 issued by the Secretariat of Interior Commerce of the Productive Development Ministry published in the Official Gazette on September 8 th incorporates Disposition 37 dated as of July 15 th, 2019 issued by the Common Market Group of the Southern Common Market (MERCOSUR), regarding . To protect the growing number of consumers who are active online, federal lawmakers have developed laws and policies designed to help ensure the safety of consumer transactions in e-commerce. In the wake of the pandemic, e-commerce has been a blessing for all consumers (when it comes to meeting not just the day to day needs/essentials but even other important requirements such as insurance, procuring essential furniture items and IT hardware to ensure unhampered work from home). Once the purchase is done, consumers may also have difficulties reaching providers or communicating with businesses. Besides, a vibrant and effective regulatory mechanism was crucial for the success of e-commerce in India. Thats another great question to ask when checking out these type of companies. We are seeing that e-commerce entities are already taking adequate representations from the sellers (at the time of onboarding) ensuing compliance with the obligations under the E-commerce Rules. Consumer Protection (E-Commerce) Rules, 2020. To reach the full potential of e-Commerce, the EU has worked on: the revised Payment Services Directive and new rules on cross-border parcel delivery services that are already in force; new rules to stop unjustified geo-blocking; revised consumer protection rules; new VAT rules for the online sale of goods and services. All refund requests are required to be completed within a reasonable period of time. Unfair trade practice and misleading advertisements. Good protection companies adhere to strict standards and are made of the most robust materials available. Although it cannot be said the existing legal framework on e-commerce, consumer protection, and advertising practices is non-existent, social media pose new legal issues that needed to be addressed. Consumer Protection in the age of E-Commerce. The remote interaction between a buyer and seller is based on the trust, and a consumer dealing with cross-border seller is always prone to risk of fraud and/or . Rule 3. Logistics Unicorn Shiprocket Slips Into The Red; Reports Loss Of Govt Decides To Not Intervene Over UPIs 30% Market Cap Deadline, Google-CCI Penalty: Startup Community Files Caveat In NCLAT, 8i Ventures Marks The First Closure Of $50 Mn Fund, SaaS Unicorn Chargebee Lays Off 10% Workforce. . This increase, facilitated the need for consumer protection laws in the Online sphere; in the form of the Electronic Transactions Act 2011, the computer misuse Act & the Electronic Signatures Act, 2011. E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. The Central Government had notified the Consumer Protection (E-Commerce) Rules, 2020 for the purposes of preventing unfair trade practices in e-commerce; and companies that violate these rules shall face action under the Consumer Protection Act, 2019. 3. The e-com rules currently recognise two e-commerce business models, namely, marketplace model and inventory-based model. A number of obligations have also been cast on a seller who lists its goods or services on an e-commerce platform. August 2, 2020. We have in an earlier article discussed the key implications of the Consumer Protection Act on the ecommerce sector, and in this follow up piece, we assess and discuss the various obligations and rights stemming from the Ecommerce Rules from the perspective of each of the following key stakeholders in the e-commerce sector ecommerce entities (marketplace and inventory models), sellers and the consumers. Definitions. Despite the proliferation of e-commerce and the growing discussion of how to govern this sector, governance for e-consumer protection is an under-researched area. The Electronic Commerce and Consumer Protection Group (ECCPG) gives guidance to merchants involved in e-commerce transactions across countries. In countries that do provide legal protection for consumer privacy, it is never protected as an absolute right. The digital revolution has propelled consumers to the forefront of international trade. Moderator: Dr. Uwe Petry, Head of the Economic Affairs Division, Permanent Mission of Germany in Geneva, There is some issue in accessing document path, Please contact to Site Admin, 05:00 - 08:00 hrs. But just as great as the potential benefits of e-commerce to consumer welfare are the challenges faced by consumers using e-commerce: unsafe products, unfair business practices, inadequate online dispute resolution, breaches to consumer privacy, and lack of coordinated action among member States. Author: Sanjay Kathuria ISBN: 1464815194 Information technology has spawned a slew of new products. Each seller needs to ensure that (a) it does not impersonate itself as a consumer and post reviews about the goods or services sold by it or misrepresent the quality or any features of any goods or services; (b) it would not refuse to take back the goods or refuse to refund the sale consideration, where the goods or services in question are defective, deficient or spurious or if they do not conform to the advertised features or the promised delivery schedule; (c) it would not advertise the goods or services offered in such a manner that are inconsistent with the actual characteristics of such goods or services; and (d) the images/description used in advertisements of goods or services offered, are consistent with the actual characteristics of such goods or services. There are some businesses that conduct their selling on their own websites. New e-commerce websites have sprung up almost over night and proliferated the market. Now, with the introduction of the E-commerce Rules and the obligation to ensure a written contract between the seller and the e-commerce entity, both the parties are bound to relook at the terms of these standard onboarding contracts to ensure a strict contractual allocation of risks and responsibilities and a proper limitation of liability regime. Pertinently, there is no clarity, test or yardstick under the E-commerce Rules on what constitutes a same class of consumers or same category of sellers or how should an e-commerce entity segregate its consumers/sellers into different classes. Consumer policies should be reviewed to accommodate the special features of e-commerce and to ensure that both consumers and businesses are aware of their rights and obligations in the digital marketplace. Consumer protection Consumer trust is one of the main preconditions for the success of e-commerce. These policies should describe: 1. "A marketplace e-commerce entity which seeks to avail the exemption from liability under . Rule 2. Introduction. Its specific objectives with respect to consumer protection in the sphere of e-commerce can be checked out at a glance: Improve and instill the public confidence in advertising and marketing via the new system. 8792 in 2000, but its consumer protection provisions rely largely on the Consumer Act No. Do they offer compensation? The E-commerce Rules have primarily been formulated with the objective to regulate the E-commerce sector in . Despite its enormous growth, e-consumers also expects consumer protection standards and regulations to protect them from unfair trade practices and to address their concerns in e-commerce. It provides that the Government may make regulations for the security procedures and practices to regulate electronic contracts. Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. Scope and Applicability. Given this new legal requirement to procure an express consent of a consumer for the purchase of any good or service, in our view, all e-commerce entities that allow a consumer to checkout as a guest would now need to ensure that before a consumer checks out with the purchase, the consumer is presented with the terms and conditions of such purchase and is offered with an opportunity to read and provide his/her express consent for such purchase. To protect the consumers from unfair trade practices and to address their concerns, the Ministry of Consumer Affairs, Food and Public Distribution on July 23, 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. Language barriers. This information includes the legal name and address of the seller, contact details, customer care number, applicable GSTIN, PAN, MRP breakup, postage and handling charges, conveyance charges, applicable taxes, country of origin and expiry date of the goods, terms of exchange, returns and refunds, cost of return shipping and any relevant guarantees or warranties applicable on the goods or services. Home Theconsumerprotection Consumer Protection (E-Commerce) Rules, 2020. Language English . The rules prompt EdTech Companies to adhere to the various requirements that are applicable to e-commerce entities. Due to the significant shift in our economy towards e-commerce, this article will focus on the regulation and the consumer protection mechanisms associated with e-commerce and electronic transactions. However, this would provide for a minimum standard to be followed. Ecommerce entities have to now ensure that there is no discrimination between the consumers of same class or make any classification amongst the consumers, which (directly or indirectly) affects the rights of the consumers. Given the obligation to disclose the details of any preferential treatment to a seller, it would be interesting to see how deviations from the standard terms of the onboarding contract would play out from a disclosure perspective. If we look at the statistics it is projected that nearly 220 million . How popular are they? Over the years, special organizations have made it their responsibility to ensure that buyers are protected 100% of the time. The restriction on price manipulation and the allied requirements to ensure a level playing field for all sellers was first introduced by the Government under the FDI policy in respect of only those e-commerce entities which had foreign investments. Consumer privacy is not considered an absolute right for three reasons: What constitutes consumer privacy is culturally, contextually, individually defined Consumer privacy often conflicts with other market rights Also, such officer will need to acknowledge the consumer complaint within 48 hours of receipt of the complaint and redress the complaint within one month from the date of receipt of the complaint. Again, what would constitute a reasonable period of time would not only differ from one e-commerce entity to another, it would also differ from a consumer to consumer and be driven by factors such as what was the mode of payment, the processing bank and the time period underlying the returns. See the E-Commerce Consumer Awareness for COVID-19 Safety and be aware before you buy. (2) Notwithstanding anything contained in sub-rule (1), these rules shall apply to a e-commerce entity which is not established in India, but systematically offers goods or services to consumers in India. Most reputable e-merchants post their privacy policies on their websites. Pertinently, prior to the notification of the Consumer Protection Act and the E-Commerce Rules, these obligations to restrain from influencing the sale price of goods or services and to maintain a level playing field for all sellers without any discrimination were applicable only in respect of e-commerce entities that had received foreign investment. To counter this menace, E-Commerce Rules go leaps and bounds in terms of transparency and pave a path towards a poised marketplace where the consumers are well-informed and there are strong checks and balances to curb deceptive and unfair trade practices. Internal commerce and consumer protection launches its e-services center in its trial version 2022-11-02T16:53:48.400Z. It is compulsory for the e-commerce entities to allocate and provide a ticket number for each consumer complaint for tracking the status of his/her complaint. and threat to the violation of consumers' variety of rights in e-commerce. Everyone loves to go with the trend, dont you think? Google India Earns INR 24,926.5 Cr As Ad Revenue; Profits Up By 5 all goods and services bought or sold over digital or electronic network including digital products; all models of e-commerce, including marketplace and inventory models of e-commerce; all e-commerce retail, including multi-channel single-brand retailers and single-brand retailers in single or multiple formats; and/or. Uganda in the recent years has been experiencing an exponential boom in e- commerce. To minimize the need for governmental legislation or regulation. The Government of India has recently unveiled the draft of the E-Commerce Guidelines for Consumer Protection, 2019, seeking inputs from stakeholders. On July 23, 2020, the Ministry of Consumer Affairs, Food, and Public Distribution has notified the Consumer Protection (E-Commerce) Rules, 2020 under the Consumer Protection Act, 2019 ("Act"), with an aim to prevent unfair trade practices in e-commerce and protect interests and rights of consumers. Consumer protection laws protect the e-commerce consumer from unfair trade practices. E-commerce includes both (a) the online ordering of tangible goods (such as electronics, books, etc.) 10173 and the Cybercrime Prevention Act 10175. In our view, this requirement appears to be more relevant in cases/in respect of marketplaces which allow the consumers to shop and check out from the website as a guest without any registration. . The rationale behind the policy change is to protect the unorganized/small sellers of the country who cannot economically compete with major e-commerce entities, yet at the same time, it stunts the growth of such e-commerce entities that receive funding from offshore investors, thereby limiting potential market in sectors such as employment. Law, at times, requires modifications in order for individuals to withstand contemporary complications. 2015 - 2022, All Rights Reserved by Journal of Legal Studies & Research. all forms of unfair trade practices across all models of e-commerce. In intervening, the EU regulator's main purpose is to impose more transparency with respect to the identity of the various actors the services . 7394, signed in 1992. Laws and Regulations on Smart Contract in Vietnam: Facts and Solutions, An Empirical Study on the Legal Issues Surrounding Embryonic Stem Cell Research in India, Alternative Dispute Resolution (ADR) with Human Rights through European Legislation, Implementation of International Laws on Marine Pollution: Challenges and Prospects, Professional Responsibility and Ethical Obligation of Lawyers in a Global Pandemic: Case Study of Covid-19 Pandemic Issues and Challenges. Room XXVI, Palais des Nations, UNCTAD - Palais des Nations, 8-14, Av. Increasing use of compulsory mediation, a growing number of legal obligations in terms of consumer information, reinforced protection of personal data and so on: as e-commerce expands, the consumer protection regulations are becoming tighter, creating an increasingly complex legal framework. This requirement is clearly an extension of the aforementioned overarching restrictions, namely, the restriction on influencing the sale price of the products or services that are listed on the marketplace (whether directly or indirectly) and the obligation to maintain a level playing field for all sellers in a same category. Journal Title: Journal of Legal Studies & ResearchAuthor(s): Dhanya BalasubramanianPublished On: 25/06/2022Volume: 8Issue: 3First Page: 120Last Page: 124ISSN: 2455-2437Publisher: The Law Brigade Publisher, Dhanya Balasubramanian, E-commerce and Consumer Protection, Volume 8 Issue 3, Journal of Legal Studies & Research, 120-124, Published on 25/06/2022, Available at https://jlsr.thelawbrigade.com/article/e-commerce-and-consumer-protection/. 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