E- Commerce Problems and Law 

Background

E-Commerce in India brought a leading change in the life style of Indian consumer with the entry of on line retailer Amazon and online auctioneer e Bay in late 1990’s.Thereafter innovative steps were initiated by the business groups to go further with their business promotion by making use of web for advertising their products .The scenario further changed with the use of social networking  which brought a remarkable flow of online purchases after the year 2006.The picture as on date is that number of modes are in operation for on line purchases through out the country.

 

The World Trade Organization on September 25th1998 had adopted a broad view of electronic commerce as ‘the production, distribution, marketing, sale or delivery of goods and services by electronic means –

By Mitchel Andrew.D

E-commerce is a practice of purchasing and selling products and services over the internet or other electronic system . It also pertains to any form of business transactions in which parties are not physically present and interact electronically. .Digital information technology is the mode of communication in such business.

By Anita Rosen from an American management association;

Changes in business style :Procedure Modes and methods

The new breakthrough in the traditional way of business has completely changed the traditional business of trading patterns. Broadband and growing use of mobile devices is another reason facilitating the general public at large to opt for net marketing.  The presence of e –retailer such as Amazon and Bricks and Mortar, is another important factor influencing e commerce activities. Consumers are equipped with a powerful tool for searching and buying goods and services.Increased competition leads to lower price,more choices of products and convenience of shopping from vendors located around the world.It is an ease and speed shopping.

Problems faced by the consumers-Big Issue

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

Available law for E-commerce

·           Indian Technology act 2000 recognizes 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 with new guidelines for E-Commerce entities

E-Commerce Entity defined under new Law

·        "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 Traditionally, marketplace e-commerce worked on zero inventory models. 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

Obligations set for e commerce entities under new act

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

·        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;

·        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

·        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

·        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

·        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

·        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.

·        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

·        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

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