E-commerce
E-commerce
Online shopping preferences have altered as a result of e-commerce expansion and developing trends. Through cost reductions, competition, and improved manufacturing process organisation, e-commerce boosts productivity and expands the range of options. The OECD updated its 1999 recommendations for consumer protection in 2016 in light of the technology advancements, internet penetration, widespread smartphone use, and social media penetration that drove the e-commerce boom. In its notes-2017, the United Nations Conference on Trade and Development (UNCTAD) acknowledges comparable issues with consumer protection in e-commerce.
Consumer protection is a pressing concern in global e-commerce. With the growth of e-commerce, the demand for increased consumer protection is becoming more acute. Technology has brought about a significant transformation in India’s marketplace and consumer culture.
Grounds for Complaints
- Product delivered is damaged/ defective
- Product has been delivered later than the time mentioned without any justifiable reason.
- Product does not match with the description on website
- If the seller refuses to entertain any such grievances and retains refund
- Manipulation of prices of the goods or services
- If information to the consumer/buyer about return, refund, exchange, warranty and guarantee of the product, when they will deliver the product, how they will take payment of such product, by which security method they will take the payment, what will be the redressal mechanism in the case of default, and moreover country of origin of that product of product or goods is not provided.
- Any form of restrictive or unfair trade practice.
- Product Liability- if a consumer buys any goods or any kind of services and if he suffers any damage due to product itself or inefficiency of service.
- any kind of misrepresentation or misleading advertisement
When Complaints Would Not Be Accepted
There are various situations which might cause the complaint to be rejected. These include situations where the consumer is unable to file an appeal against an order within a period of three months, where the complaint is based on a frivolous cause of action, where the complaint falls outside the jurisdiction of the authority approached, and when the complaint has been filed under wrong sections of the act, and other such situations. This requires careful reading of all acts and regulations.
Complaint Redressal System
1) Chief Compliance Officer
As per the Consumer Protection (E-commerce) Rules, 2020 there must be an appointment of Chief Compliance Officer, a nodal contact person for 24×7 coordination with law enforcement agencies, officers to ensure compliance to their orders and Resident Grievance Officer for redressing of the grievances of the consumers on the e-commerce platform. If a consumer has made any complaint regarding the product or service then these platforms have to address such complaint within 48 hours and have to redress such complaint within one month from the receipt date of the complaint. And such e-commerce entities have to appoint a grievance officer for the purpose of consumer grievance redressal.
2) Approaching the National Consumer Helpline
Consumer Helpline
For Grievances Related to Cyber Financial Fraud Only- 1930 or visit www.cybercrime.gov.in
For Grievance Related to Bureau of Indian Standards (BIS) www.bis.gov.in .
3) Approaching any other appropriate judicial or quasi-judicial body
The complainant is free to take the service provider to a court or any other suitable venue (judicial or quasi-judicial). The proceedings in consumer commissions are not mired by the niceties of procedure, allowing the complainant to file a complaint for himself. As a consumer, the aggrieved party can take the service provider to the appropriate consumer commission, based on the pecuniary and territorial jurisdiction. The jurisdictions of the various consumer commissions are as follows-
a) District Commission: The aggrieved consumer can reach out to the District Commission under section 34 of the CPA, 2019, which provides that the district commission shall entertain matters where the value of the goods or services paid as consideration does not exceed more than one crore rupees.
b) State Commission: In cases where the value of the goods or services paid as consideration is more than one crore, but less than 10 crores, the consumer can approach the State Commission. Moreover, in cases of unfair contracts, the State Commission has original jurisdiction and the consumer can be directly approached. An appeal against the order of the District Commission can also be made under section 47 of the CPA, 2019.
c) National Commission: The National Commission can entertain matters where the value of goods or services paid as consideration exceeds 10 crores. Section 58 also provides that complaints against unfair contracts can be entertained by NCDRC when the amount of value paid exceeds 10 crores. The NCDRC also has appellate jurisdiction against the orders of any State Commission and Central Authority.
Moreover, it must also be kept in mind that section 100 of the CPA, 2019 provides that the remedy under CPA is in addition and not in derogation of other available remedies.
Another remedy available to consumers is mediation. Chapter 5 of the Consumer Protection Act provides for establishing mediation cells and resolving consumer complaints using mediation.
4) Central Consumer Protection Authority
If the commission finds violations of rights of consumers or in notice of trade practices which is unfair it can inquire or cause an inquiry, either on receipt of complaint or suo moto or as directed by Central Government. If the commission finds after preliminary inquiry of an existence of a prima facie case of consumer rights violation or it is in notice of any unfair trade practice or any wrong or inaccurate advertisement which is prejudicial to public interest or to the interests of the consumers,it can order an investigation by the District Collector or by Director General.
The consumer can complain to the District Collector of the respective district for investigation and subsequent proceedings by the CCPA. He/she/they can also submit a complaint via email, at com-ccpa@nic.in.
Regulatory Bodies
- Different e-commerce entities are currently being regulated by different entities, resulting in a piecemeal approach and creating confusion among various stakeholders. There is no specialised Department for Promotion of Industry and Internal Trade- every e-commerce entity operating in India be required to register itself with it.
- Competition Commission of India- the primary purpose of regulating competition in the market, plays a significant role in protecting the interests of consumers.
- Ministry of Electronics and Information Technology
- Ministry of Consumer Affairs, Food & Public Distribution
Legislations
1. Consumer Protection Act, 2019
2. Consumer Protection (E-commerce) Rules, 2020
3. Competition Act, 2002
4. Income Tax Act, 1961
5. Information Technology Act, 2000
6. FDI Policy on E-COMMERCE and FOREIGN EXCHANGE management Act, 1999
7. Payment and Settlement Systems Act 2007
8. Companies Act, 2013
9. Laws related to Goods and Services Tax
Landmark Judgements
1. HDFC Bank Limited and Ors. v. Hemant Narayan Devande
NCDRC observed that the denial of the transaction on a phone call by the Complainant shows that the petitioner bank must have come to know that the transaction was disputed. The Petitioner should have stopped the payment. NCDRC held deficiency in service on the part of the bank.
2. Renaissance Hotel Holdings, Inc. v. B.Vihaya Sai & Anr.
Regarding territorial jurisdiction- The place of business and place of work has to be understood not by looking at the booking through e-mails but where the actual physical business of hospitality is being done.
3. Spicejet Limited v. Ranju Aery
The Supreme Court ruled that consumers opting for online purchase of products through websites can file a consumer complaint before any consumer court for deficiency in services.
Sample Complaints