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 Government of India has recently unveiled the draft of the E-Commerce Guidelines for Consumer Protection, 2019, seeking inputs from stakeholders. Uncertainty of merchantability goods. Once the purchase is done, consumers may also have difficulties reaching providers or communicating with businesses. To minimize the need for governmental legislation or regulation. 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? In intervening, the EU regulator's main purpose is to impose more transparency with respect to the identity of the various actors the services . Consumer Protection in the age of E-Commerce. Home Theconsumerprotection Consumer Protection (E-Commerce) Rules, 2020. This book advances the international debate on the development of e-commerce with focus on emerging ASEAN economies. 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. Attachment: E commerce rules.pdf. E-commerce is still relatively new and consumers are not as confident with it as with real-world shopping. 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. (1) In these rules unless the context otherwise requires, (a) "Act" means the Consumer Protection Act, 2019 (35 of 2019); 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. Most reputable e-merchants post their privacy policies on their websites. (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. Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. Every e-commerce entity has a different policy in relation to refunds and there have been instances where consumers have had to wait for a considerable amount of time to receive the refund payments. 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 . Log in, Consumer Protection (E-Commerce) Rules, 2020, Liabilities of marketplace e-commerce entities, Duties and liabilities of inventory e-commerce entities. Thats another great question to ask when checking out these type of companies. Given the above, the key implications emanating from the E-Commerce Rules that an e-commerce entity should take note of: Interestingly, 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 and this consent can no longer be recorded automatically, not even in the form of pre-ticked checkboxes. The Philippines passed the E-commerce Act No. Over half of Singaporeans are buying from e-commerce sites, like Shopee, Lazada, Qoo10, Carousell, and others. 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. E-commerce includes both (a) the online ordering of tangible goods (such as electronics, books, etc.) 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. For consumers be active players in achieving the Sustainable Development Goals, we must empower them and enhance their confidence in digital markets. 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. E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. 10 While there are various challenges in the conduct of e-commerce transactions, the consumer protection in e-commerce transactions is of utmost substance. 5 have reported that the general category of e-commerce can be classified into two parts: (a) e-merchandise -selling goods and services electronically and moving items. A consumer typically accepts the terms and conditions of the marketplace (which are often structured as a click wrap agreement) only once at the time of making an account with such marketplace (and not at the time of every purchase) and these terms and conditions continue to apply every time the consumer makes a purchase on the marketplace. 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). The policy shall cover more concepts, rights . E-commerce is defined as, "the use . As e-commerce gained enormous popularity, governments found it pertinent to revamp the consumer protection law to safeguard the interest of consumers. Uganda in the recent years has been experiencing an exponential boom in e- commerce. all forms of unfair trade practices across all models of e-commerce. This is so if issue of consumer protection not properly addressed with the adequate The Ministry of Internal Trade and Consumer Protection launched the electronic services center in its trial version for two weeks, on the link (www.cts.sy), which provides services to citizens and economic activities . Related consumer protection laws . 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. E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. In fact, the National Consumer Disputes Redressal Commission and the District Consumer Disputes Redressal Commission have in the past also held that listing goods at a price higher than the MRP is an offence under the Consumer Protection Act. The digital revolution has propelled consumers to the forefront of international trade. 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 have primarily been formulated with the objective to regulate the E-commerce sector in . The internet makes it easy for us to access data and news. 1. How popular are they? Consumer Protection (E-Commerce) Rules, 2020. . 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. Language English . Internal commerce and consumer protection launches its e-services center in its trial version 2022-11-02T16:53:48.400Z. Today's digital consumers have access to an unprecedented choice of goods and services. Everyone loves to go with the trend, dont you think? "A marketplace e-commerce entity which seeks to avail the exemption from liability under . 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. 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 . 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. 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. Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. E-commerce offers made by anonymous traders. 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. Consumer Protection: Rules made under Consumer Protection Act, 2019. 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. 3. Definitions. Scope and Applicability A responsive customer service available 24/7 is my number one feature that a good consumer protection service company should provide. Companies like 4x Buyer Protection services offer registered users a maximum of $500 compensation. However, this blessing has not been unadulterated as everyday online scams and unfair trade practices have had the consumers reel under the fear of exposing themselves to unscrupulous sellers and service providers. However, the Philippine government had also released new laws covering online activities. 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. 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. First, our country's e-commerce sector has witnessed exponential growth in . and threat to the violation of consumers' variety of rights in e-commerce. The E-Commerce Rules indeed appear to be in sync with the robust consumer protection regime under the Consumer Protection Act and the timing of the notification of the E-Commerce Rules (even though delayed) is helpful given the recent restraints on the freedom of movement of a consumer and the ensuing increased dependence on e-commerce courtesy the raging Covid-19 pandemic. 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. The Electronic Commerce and Consumer Protection Group (ECCPG) gives guidance to merchants involved in e-commerce transactions across countries. The Consumer Protection (E-Commerce) Rules, 2020 were introduced with the intent to ensure that consumers on e-commerce platforms are afforded the rights and protections that they are due. 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. 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 . CONSUMER PROTECTION IN E-COMMERCE It is worthwhile at this juncture to recall the distinction drawn between cyber-consumer redress and cyber consumer protection. Introduction. 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. 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. 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 . 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. Make sure that your browser complies with the industry security standards, such as Secure Sockets Layer (SSL) or Secure Electronic Transaction (SET). In this regards, the paper briefly. 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'). January 2011; Authors: Julian Gnana Dhas Chandran. A year after the enactment of the Consumer Protection Act 2019 (Consumer Protection Act), which legislation has repealed its more than three decades old predecessor, the Government has now notified the Consumer Protection (E-Commerce) Rules 2020 (E-Commerce Rules) with effect from 23 July 2020. The aim is to provide better transparency to consumers whereby the much talked about the . The rules prompt EdTech Companies to adhere to the various requirements that are applicable to e-commerce entities. 4. 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. Ask yourself, if something goes wrong and youre unable to sort it out and losses are made, what happens next? Given that this is a very recent law . 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. The electronic era continues to raise a slew of impediments pertaining to customer protection. Law, at times, requires modifications in order for individuals to withstand contemporary complications. 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. E-commerce brings forth a tougher business competition, leads to creation of new marketplaces, faster transactions, and rapid growth in technologies. Having a protection company offer you compensation is more than just a lifesaver. Rule 3. The consumers (falling under the definition given in Section 2 (7) of the Consumer Protection Act) could be both physical as well as e-commerce consumers. 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. In countries that do provide legal protection for consumer privacy, it is never protected as an absolute right. All Rights Reserved. 10173 and the Cybercrime Prevention Act 10175. 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. The e-com rules currently recognise two e-commerce business models, namely, marketplace model and inventory-based model. A click of your mouse can bring you anything you . 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. 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/. Published December 19, 2013. There are various challenges that can be seen in e-commerce by the e-consumer's are as follows: 1. Un-understandable refund policies. Always use a secure browser. 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. 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 . Guidelines have been established for a reason and a proper Terms of Service agreements must be reached. 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. On 23rd July 2020, the union government, under powers conferred by 101 (2) (zg) of the Consumer Protection Act, 2019 ('COPRA'), enacted the Consumer Protection (E-Commerce) Rules, 2020 ('2020 Rules') which aimed at regulating the e-commerce sector of our country. The governmental approach to e-commerce in the United States is best described as 'light touch' regulation. Consumer protection laws protect the e-commerce consumer from unfair trade practices. Author: Sanjay Kathuria ISBN: 1464815194 Language barriers. ECCPG Guidelines determine . 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. Some foreign online sellers may be taking advantage of American consumers by charging high prices for counterfeit or substandard sanitation products and safety equipment. 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. Having someone to run to in time of need is a very critical part of any online establishment. 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. 59/16, 4th Floor, Jujhar Tower RD Marg, Kalkaji, New Delhi, Delhi 110019, National Consumer Disputes Redressal Commission, District Consumer Disputes Redressal Commission. 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. It provides that the Government may make regulations for the security procedures and practices to regulate electronic contracts. 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. If we look at the statistics it is projected that nearly 220 million . However, there are still some gaps between the requirements under the Foreign Exchange Management (NonDebtInstrument)Rules 2019 (NDI Rules) that apply only in respect of e-commerce entities with foreign investment and the Consumer Protection Act/E-Commerce Rules. August 2, 2020. Electronic commerce, more commonly known as e-commerce, is the buying and selling of goods or services on the internet. 2. Do they offer compensation? Besides, a vibrant and effective regulatory mechanism was crucial for the success of e-commerce in India. 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. Your browser is currently blocking notification. 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. The first thing to check is their customer service. 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. 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. Out of 142 countries for which data are available, 115 have adopted legislation on consumer protection related to e-commerce. However, the exact tenor of this requirement is unclear what actions of the consumers would constitute explicit and affirmative consents have been not been elucidated in the E-Commerce Rules. New e-commerce websites have sprung up almost over night and proliferated the market. Applicability and Scope of the Rules- 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. 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.
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