Context of Electronic Commerce ("1999 Recommendation"). Updated August 28, 2017. Pertinently, the Indian e-commerce market has been witnessing unprecedented growth in recent years, and an adequate regulatory regime was the need of the hour to bring a robust redressal mechanism and streamline the extant framework. Therefore, the Ministry of Consumer Affairs, Food and Public Distribution on July 23, 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. News & Analysis on Indias Tech & Startup Economy, 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, Ecommerce entities are now required to obtain an express consent from its consumers for the purchase of any good or service offered on its platform, Price of the goods or services offered cannot be manipulated by the e-commerce entities to gain unreasonable profits. A responsive customer service available 24/7 is my number one feature that a good consumer protection service company should provide. Would this consent be required only at the time of the registration by a consumer with an online e-commerce platform or would a consent be required every time a consumer undertakes a purchase transaction? The Government of India has recently unveiled the draft of the E-Commerce Guidelines for Consumer Protection, 2019, seeking inputs from stakeholders. This paper, therefore, carries out a comparative study of the legal framework for e-commerce and consumer protection in Malaysia and Nigeria respectively. 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. Log in, Consumer Protection (E-Commerce) Rules, 2020, Liabilities of marketplace e-commerce entities, Duties and liabilities of inventory e-commerce entities. Download full-text PDF. 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. Having someone to run to in time of need is a very critical part of any online establishment. Rule 3. The internet makes it easy for us to access data and news. of Consumer Affairs, Food and Public Distribution on July 23, 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. Electronic commerce or internet commerce is commonly referred as E-commerce, which can be understood as, buying and selling of products and services through the medium of internet along with transfer of money and data for the execution of the deal. 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. The first thing to check is their customer service. 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. The digital revolution has propelled consumers to the forefront of international trade. Besides, a vibrant and effective regulatory mechanism was crucial for the success of e-commerce in India. 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. 6. Law, at times, requires modifications in order for individuals to withstand contemporary complications. This includes: 1. The Ministry of Consumer Affairs, Food, and Public Distribution notified a slew of Consumer Protection (E-commerce) Rules, 2020 ("Rules") under the Act for the growth of the e-commerce sector and protection of the right of the consumers. E-commerce includes both (a) the online ordering of tangible goods (such as electronics, books, etc.) 1. 7394, signed in 1992. 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. 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 2016-guidelines aim to address the growing challenges of e-consumers' protection by stimulating innovation and competition, including non-monetary transactions, digital content products, consumers-to-consumers (C2C) transactions, mobile devices, privacy and security risks, payment protection and product safety. There are various challenges that can be seen in e-commerce by the e-consumer's are as follows: 1. In today's time with such advancement in technology and fast-moving lifestyle the e-commerce sector has seen a rapid growth, it has evolved . . 10173 and the Cybercrime Prevention Act 10175. The Federal Trade Commission (FTC) has established consumer protection regulations . Today's digital consumers have access to an unprecedented choice of goods and services. 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. "A marketplace e-commerce entity which seeks to avail the exemption from liability under . The emergence of Information and Communication Technology seems to have an imprint on practically every aspect of human existence, along with the acquiring and sale of goods and services. 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. Rule 4 (1) (a) of the Consumer Protection (E-Commerce) Rules states that each e-commerce entity shall be a registered company under The Companies Act, 2013 or a foreign company under the Companies Act, 2013 or an . They are (Alboukrek, 2003): (1) Merchants must be fully open about their business and goods and services provided, as well as the requirements and conditions of transactions. 8792 in 2000, but its consumer protection provisions rely largely on the Consumer Act No. Do they offer compensation? Consumer protection laws protect the e-commerce consumer from unfair trade practices. Consumer Protection Rules, 2020 Unfair trade practice and misleading advertisements. Access full book title Consumer Protection In E Retailing In Asean by Huong Ha, the book also available in format PDF, EPUB, . January 2011; Authors: Julian Gnana Dhas Chandran. New e-commerce websites have sprung up almost over night and proliferated the market. 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 Un-understandable refund policies. Over half of Singaporeans are buying from e-commerce sites, like Shopee, Lazada, Qoo10, Carousell, and others. However, how effectively these E-commerce Rules would be enforced in practice so as to create a deterrence for unscrupulous sellers and service providers and thereby instil consumer confidence, is something that we would have to see with the passage of 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 protection Consumer trust is one of the main preconditions for the success of e-commerce. As e-commerce gained enormous popularity, governments found it pertinent to revamp the consumer protection law to safeguard the interest of consumers. The slew of rules is indubitably a calibrated step in the right direction of platform neutrality in the e-commerce market space, transparency, stringent penalties and a delicate balance between the obligations of the marketplace e-commerce entities and sellers on the platform. The E-commerce Rules have primarily been formulated with the objective to regulate the E-commerce sector in . It provides that the Government may make regulations for the security procedures and practices to regulate electronic contracts. This is so if issue of consumer protection not properly addressed with the adequate However, this would provide for a minimum standard to be followed. Consumer protection is a widely debated issue in the E-Commerce and this is because the practical issues consumer face in online transactions are different from offline transactions. The governmental approach to e-commerce in the United States is best described as 'light touch' regulation. This session will identify areas where national and regional consumer protection frameworks and institutional capacities need to be strengthened to better protect consumers and to ensure sustainable and inclusive digital markets. The Central Government has recently notified the long-pending e-commerce rules under the Consumer Protection Act, 2019 to better regulate the ever-growing e-commerce market, especially to monitor the dominance of foreign players such as Amazon and other market leaders namely Flipkart, Snapdeal, etc. These policies should describe: 1. 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. On July 23, 2020, the Ministry of Consumer Affairs, Food and Public Distribution notified the Consumer Protection (E-Commerce) Rules, 2020 ("Rules") under the Consumer Protection Act, 2019 ("Act"), with the intent of preventing unfair trade practices in e-commerce and protecting consumers' interests and rights. Uganda in the recent years has been experiencing an exponential boom in e- commerce. Once the purchase is done, consumers may also have difficulties reaching providers or communicating with businesses. Under the Consumer Protection Act, 1986, there were either no provisions or ambiguous ones relating to e-commerce in India." "Consumers facing grievances while purchasing goods from. With these restrictions being introduced under the Consumer Protection Act and the E-Commerce Rules as well, the Government has now created a uniform governing code for all e-commerce entities in India (with or without foreign investment) and resolved the abovementioned disparity. In such cases, the exercise of such option by a consumer (by means of clicking at the payment button at the time of checkout) automatically makes a consumer agree to the terms and conditions of such purchase, without actually giving an opportunity to the consumer to read and accept such terms and conditions. In countries that do provide legal protection for consumer privacy, it is never protected as an absolute right. 4. Most reputable e-merchants post their privacy policies on their websites. 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 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'). They have been guaranteed certain rights against the manufacturers and the middlemen involved in the production and distribution of the final products and services for consumption. Price of the goods or services offered cannot be manipulated by the e-commerce entities to gain unreasonable profits. This article was co-authored by Sarthak Sarin (Partner) and Govinda Toshniwal (Senior Associate), Khaitan & Co, The contents of this article do not necessarily reflect the views/position of Khaitan & Co but remain solely those of the author(s). 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. A click of your mouse can bring you anything you . E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. Internal commerce and consumer protection launches its e-services center in its trial version 2022-11-02T16:53:48.400Z. Further, the Consumer Protection Act and the E-Commerce Rules also stipulate that an e-commerce entity shall not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field for all sellers without any discrimination. E-commerce offers made by anonymous traders. The electronic era continues to raise a slew of impediments pertaining to customer protection. This practice was already prevalent as a good practice by several e-commerce entities, but now has been made mandatory for all e-commerce entities. Ask yourself, if something goes wrong and youre unable to sort it out and losses are made, what happens next? . Please click the Submit Button below to proceed. 10 While there are various challenges in the conduct of e-commerce transactions, the consumer protection in e-commerce transactions is of utmost substance. 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 digital revolution has propelled consumers to the forefront of international trade. Paying a lump sum to protection your own business as well as the purchases your e-commerce customers make is key to running a successful online business. On 24 March 2016, the OECD Council revised this instrument and the Recommendation of the Council on Consumer Protection in E-commerce ("the revised Recommendation") now addresses new and emerging trends and challenges faced by consumers in today's dynamic e-commerce marketplace. 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. Uncertainty of merchantability goods. Out of 142 countries for which data are available, 115 have adopted legislation on consumer protection related to e-commerce. Sri Krishna College of Arts and Science; Download full-text PDF Read full-text. 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. This study is the first of its kind to employ both quantitative (e-survey) and qualitative (interviews) research to examine e-consumer protection from the view of all three e-governance sectors: e-consumers, e-retailers, and other . Introduction. All refund requests are required to be completed within a reasonable period of time. 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. The Electronic Communications and Transactions Act and Consumer Protection 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 Protection in Electronic Commerce. E-commerce is forecast to grow to US$7.29 billion by the end of 2022. Your browser is currently blocking notification. Today's digital consumers have access to an unprecedented choice of goods and services. In order to adapt consumer protection to the current environment and reinforce fair business practices, information disclosures, payment protections, dispute resolution, and education, the OECD has just revised its Recommendation on Consumer Protection in E-commerce. The Philippines passed the E-commerce Act No. 2. Last 2008, the Department of Trade and Industry, Department of Agriculture, and Department of Health issued a consumer protection joint circular providing consumer protection guidelines on the selling of products and services through e-commerce. E-commerce is still relatively new and consumers are not as confident with it as with real-world shopping. That share varies from 78% in Europe to 52% in Africa and 71% in the Americas. A number of obligations have also been cast on a seller who lists its goods or services on an e-commerce platform. Make sure that your browser complies with the industry security standards, such as Secure Sockets Layer (SSL) or Secure Electronic Transaction (SET). 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. 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. 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. Managing all of the legal challenges . 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/. Consumer Protection (E-Commerce) Rules, 2020. The policy shall cover more concepts, rights . Apart from a grievance redressal officer, an e-commerce entity is now required to also appoint a nodal person of contact or an alternate senior designated functionary (who is resident in India) to ensure compliance with the provisions of Consumer Protection Act and the E-Commerce Rules. Good protection companies adhere to strict standards and are made of the most robust materials available. How popular are they? 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. Language English . The E-commerce Rules have primarily been formulated with the objective to regulate the E-commerce sector in India and protect consumers from unfair trade practices on such platforms. Given that this is a very recent law . E-commerce can be generally understood as a system or a method of conducting business through electronic media rather than through conventional physical means. de la Paix, 1211 Geneva 10, Switzerland, Welcome to the United Nations Conference on Trade and Development, Indicators of consumer protection and empowerment in the digital world, Protecting Consumers in Peer Platform Markets, Background Report, Consumer Product Safety in an Era of Technology-Driven Products and Supply Chains: Project Proposal - 3D printing and the Internet of Things. 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. Scope and Applicability Redress is a method provided by any law models considered here by which a cyber-consumer who is an aggrieved party to a CCT would seek a remedy from a merchant for non- . all forms of unfair trade practices across all models of e-commerce. 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. 2015 - 2022, All Rights Reserved by Journal of Legal Studies & Research. 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