Protection of Consumer Rights in E-Commerce in India

Abstract

The e-commerce and consumer Internet industries in India registered phenomenal growth rates with their shares in retail, grocery delivery and food technology palpable enough even in tier II and III cities. However, the space ceded from traditional businesses to online commerce has policy implications for consumer trust and confidence—one of the foundations in a market economy. A legal solution to this problem is found in the concept and device of consumer rights so that factors such as information asymmetry, collusion between manufacturers and retailers, fraud, cheating and unfair trade practices do not disadvantage consumers vis-a-vis sellers or become a hindrance in the expansion of businesses. First, a brief overview of the architecture for the protection of consumer rights in e-commerce in India is provided. This includes the Consumer Protection Act 1986 and 2019. The second part of the article looks thoroughly at various consumer cases filed in the e-commerce category at district, state and national consumer forums in India to answer certain pertinent questions in this field which may benefit much from the attention of policymakers and researchers alike. This includes, first, what are some of the biggest consumer issues of concern and frequency in e-commerce in India? Second is the current three-tier framework of consumer courts, at the national, state and district levels, sufficient to address the growing volume of consumer complaints in this area? Third, do consumer courts have adequate capacity to deal with questions involving consumer interests in a field that requires technological knowledge apart from legal know-how? Last, alternatives and policy suggestions are given to strengthen consumer protection to ensure twin goals of swiftness and fairness of decisions on consumer complaints and cases in e-commerce in the country.