Directions for Ecommerce entities under new Consumer Protection act 2019

उपभोक्ताओ के लिए ऑन लाइन खरीददारी का अब स्वर्णिम युग

A )  Problems faced by the consumers-

1.     Order cancelled without information

2.     Price hike after order

3.     Different item delivered

4.     Defective item deliverd

5.     Cancellation charges asked for

6.     Non-delivery /late delivery

7.     Non-refund of payment

8.     No after sale services

9.     Website disappears after money sent

B) Available law for E-commerce

·        Indian Technology act 2000 recognises online purchases. Section 10A of the Information Technology Act, 2000 ("IT Act") provides validity to e-contracts The Supreme Court in Trimex International FZE Ltd. Dubai v. Vedanta Aluminum Ltd. has held that e-mails exchanges between parties regarding mutual obligations constitute a contract

·        RESERVE BANK OF INDIA  by issuing various circulars  regarding online banking and money transfer activities have made consumers  capable of securing  the online space

·        CONSUMER PROTECTION ACT

C)   What is E-Commerce entity

                  

·        "e-commerce entity" means any person (whether natural or juridical) who owns, operates or manages a digital or electronic facility or platform for electronic commerce,

 

·        Inventory e-commerce entity -When the seller decides to list its product on an inventory e-commerce entity's platform, it authorizes the entity to assume ownership and control of the goods for the purposes of delivery to the consumer. An inventory e-commerce entity, thus, assumes control over the goods only after the seller so authorizes it for the purpose of effecting Examples of such e-commerce entities include eBay, OLX, Naaptol, etc

 

·        Marketplace e-commerce entity: an e-commerce entity which provides an electronic platform to facilitate transactions between buyers and sellers^[2]. Traditionally, marketplace e-commerce worked on zero inventory model. The e-commerce entity acts as a mere facilitator of transactions and exchange of information between buyer and seller. Examples of such entities include Amazon and Flipkart

 

D) Obligations set for e commerce entities under new act –

         

1.      Must display its legal name, address of its headquarters and all branches; website;Contact details

2.     The entity must provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, grievance redressal mechanism, ticket number for each complaint lodged to track its status and any other similar information;

3.     The entity must also provide available modes of payment and their security, procedure to cancel payments, applicable fees and charges, charge back option and contact information of the relevant payment service provider

4.     Details of grievance redressal system, grievance officer and formula of attending complaint- must acknowledge receipt of any consumer complaint within 48 hours and must redress it within 1 month from the date of receipt of such complaint

 

5.     No cancellation charges shall be levied by the e-commerce entity on its consumer unless such a charge is to be borne by the entity itself after cancellation of the purchase

 

6.     An e-commerce entity or seller cannot indulge in any "unfair trade practice" either in the course of its business or otherwise- false statements False representation misleading statement etc

 

7.     No e-commerce entity is allowed to manipulate the price of goods or services offered on its platform so as to gain unreasonable profit from the consumers where prices of goods are inflated over their Maximum Retail Price ('MRP') and then offered at "heavy discounts" to consumers to make the purchase seem more attractive.

 

8.     Product Liability -If an entity "in the course of business, imports, sells, distributes, leases, installs, prepares, packages, labels, markets, repairs, maintains, or otherwise is involved in placing such product for commercial purposes" and is not a provider of professional services where the sale of the product is incidental to such services, primary responsibility for any practice detrimental to the consumer interest

 

9.     The seller shall not refuse to take back goods or discontinue services or refuse to refund consideration paid, if such goods/services are defective, deficient, spurious or not of a character as represented by it

 

Still some questions on self-determined price

·        Self-motivated pricing model adopted by e-commerce entities Uber's pricing model, wherein the consumer has to accept a fixed price for the cab services offered by these e-commerce entities

·        When one opts to buy a product from Amazon/Flipkart or wishes to purchase flight tickets. The prices under this model are changed in different times

 

Note- Would not be indicative of foul practices since it operates on the economics of demand and supply

 

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