Consumer Protection Law to include online retail too

Online retailers have a reason to be thrilled, considering the supersonic speed at which ecommerce in India is growing. And now they also have a reason to be careful in their dealings.

Last month, Union Food Minister Ram Vilas Paswan had said that there is a need to protect the rights of online shoppers and help them find legal recourse for their complaints. Ten days back, plans to amend the consumer act had been announced. Now, the consumer affairs department has proposed to bring ecommerce under the purview of the consumer protection law. This would include all modes of ecommerce including e-marketplaces, teleshopping and direct selling.

This amendment would also make it possible for consumers to take action against e-tailers and teleshops in case they refuse to return damaged products or don’t provide a refund within a month. However, the proposal goes on to say, “electronic intermediary shall not be said to have engaged in ‘unfair trade practice’ if it facilitates manufacturers, traders or other persons, who use such electronic intermediary for advertising, selling or providing goods or services.” This has been done to distinguish between actual sellers and intermediaries/facilitators, but cynics believe that this is open to exploitation by e-tailers.

To file a complaint, consumers must have a bill, and hence it is proposed to make it compulsory for sellers to issue bills or cash memos. The failure to do so on the part of the seller would count as an unfair trade practice. To enforce these e-consumer rights, the Cabinet note suggests setting up a Consumer Protection Authority which would be empowered to take action against unsafe products and unfair practices. Besides, this committee would have a whole lot of powers and responsibilities, including imposing fines on violators of the law. A new chapter with provisions for ‘product liability’ action for or on account of personal injury, death or property damage caused by any product has also been proposed.

Just last week, offline traders had protested against online trade, filed a complaint with the CCI, and urged the government to take steps to curb ecommerce. There has been no closure on that yet, but these consumer protection laws were much needed especially because instances of cheating in the ecommerce space are not unheard of. Here is a fun one with a happy ending, even though the happy ending didn’t come from the miscreants – Snapdeal!