That share varies from 78% in Europe to 52% in Africa and 71% in the Americas. E-Commerce merchants are required to adopt fair and reasonable business practices. This book advances the international debate on the development of e-commerce with focus on emerging ASEAN economies. E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. 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. Most reputable e-merchants post their privacy policies on their websites. 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. 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. 2. Language English . Rule 3. As e-commerce gained enormous popularity, governments found it pertinent to revamp the consumer protection law to safeguard the interest of consumers. Separately, now it is also mandatory for e-commerce entities to disclose the terms and conditions governing their relationship with sellers on their platforms including a description of any differential treatment that a marketplace is providing to any particular seller(s) or in respect of any goods or services in the same category. E-commerce elevates a multitude of problems, notably data security threats, untrustworthy advertisements, and so forth. 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 . 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. Definitions. January 2011; Authors: Julian Gnana Dhas Chandran. 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 need for such rules was mainly twofold. As a matter of practice, e-commerce entities used to enter into a standard contract with a seller (before onboarding such seller on its platform) and such a contract was usually in a form of a click wrap agreement which set out the terms and conditions governing the sale of goods and services by such seller on the e-commerce entitys marketplace. For instance, under the NDI Rules, an ecommerce entity with foreign investment is required to obtain a report from a statutory auditor by 30 September every year confirming compliance of the ecommerce guidelines under the NDI Rules for the preceding financial year; but this requirement has not been prescribed under the Consumer Protection Act/E-Commerce Rules. The electronic era continues to raise a slew of impediments pertaining to customer protection. 3. E-Commerce-Consumer Protection Model. 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 Consumer Protection Act has bolstered the regulatory approach towards consumer protectionism and reinforced the legal framework for a timely and effective administration and settlement of consumer disputes at a time when rapid developments in the modern age retail trade and technology have led to a marketplace which is accessible by a click of a button and is no longer shackled by the rigours of distance, location, space constraints, opening hours, stock limitations or logistical challenges. 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 Definitions. 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 . Updated August 28, 2017. 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. To counter this menace, E-Commerce Rules go leaps and bounds in terms of transparency and pave a path towards a poised marketplace where the consumers are well-informed and there are strong checks and balances to curb deceptive and unfair trade practices. 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. 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. Applicability and Scope of the Rules- Log in, Consumer Protection (E-Commerce) Rules, 2020, Liabilities of marketplace e-commerce entities, Duties and liabilities of inventory e-commerce entities. The Philippines passed the E-commerce Act No. . 3. 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. 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. 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. In the wake of the pandemic, e-commerce has been a blessing for all consumers (when it comes to meeting not just the day to day needs/essentials but even other important requirements such as insurance, procuring essential furniture items and IT hardware to ensure unhampered work from home). 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. When the consumer takes a decision to purchase a good or a service, the most common challenges that occur during purchase include unfair contract terms, online payment security and data protection and privacy. E-Commerce. The rules prompt EdTech Companies to adhere to the various requirements that are applicable to e-commerce entities. Unleashing E Commerce For South Asian Integration. Candidate, 2019 On February 6th, 2019, Windsor Law LTEC Lab, led by Professor Pascale Chapdelaine, hosted a panel discussion: "E-commerce, Algorithms, Big Data, Consumer Deception and Protection."The panel brought together scholars, public agency analysts and officers, and experts in privacy, e-commerce, consumer protection, technology . 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 . The Consumer Protection (E-Commerce) Rules, 2020, notified on July 23, regulate all commercial transactions sold over a digital or electronic network. E-commerce brings forth a tougher business competition, leads to creation of new marketplaces, faster transactions, and rapid growth in technologies. E-commerce can be generally understood as a system or a method of conducting business through electronic media rather than through conventional physical means. The Government of India has recently unveiled the draft of the E-Commerce Guidelines for Consumer Protection, 2019, seeking inputs from stakeholders. 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. Therefore, the Ministry of Consumer Affairs, Food and Public Distribution on July 23, 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. Consumer Protection in Electronic Commerce. If we look at the statistics it is projected that nearly 220 million . This requirement is clearly an extension of the aforementioned overarching restrictions, namely, the restriction on influencing the sale price of the products or services that are listed on the marketplace (whether directly or indirectly) and the obligation to maintain a level playing field for all sellers in a same category. A number of obligations have also been cast on a seller who lists its goods or services on an e-commerce platform. A click of your mouse can bring you anything you . 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. Besides, a vibrant and effective regulatory mechanism was crucial for the success of e-commerce in India. This paper attempts to analyse whether the Indian Consumer Protection Act has adequate provisions to protect the consumers from numerous challenges arising out of E-commerce. It is now mandatory for e-commerce entities to appoint a grievance redressal officer for consumer grievance redressal and the details of such grievance officer, such as name, contact details and the designation are required to be displayed on the online platforms. Guidelines have been established for a reason and a proper Terms of Service agreements must be reached. Overview E-transaction Laws Data Protection Privacy Laws Cybercrime Laws 59% COUNTRIES WITH Legislation 5% COUNTRIES WITH Draft Legislation 9% The term ecommerce entity has been very broadly defined under the E-Commerce Rules to mean/include any person, who owns, operates or manages digital or electronic facility or platform for electronic commerce, but does not include a seller offering his goods or services for sale on a marketplace e-commerce entity and the E-Commerce Rules apply to: The legislative intent to include all forms of e-commerce/retail models/entities B2C, B2B and B2B2C, whether incorporated in or outside India (but offering goods and services to consumers in India), within the grip of the E-commerce Rules is abundantly clear. Please click the Submit Button below to proceed. August 2, 2020. Having someone to run to in time of need is a very critical part of any online establishment. goldsmith et al. This increase, facilitated the need for consumer protection laws in the Online sphere; in the form of the Electronic Transactions Act 2011, the computer misuse Act & the Electronic Signatures Act, 2011. Consumer Protection 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. 5. Today's digital consumers have access to an unprecedented choice of goods and services. Uganda in the recent years has been experiencing an exponential boom in e- commerce. Pani Sarkis Student Writer, Windsor Law LTEC Lab J.D. Thats another great question to ask when checking out these type of companies. Attachment: E commerce rules.pdf. ECCPG Guidelines determine . All refund requests are required to be completed within a reasonable period of time. It provides that the Government may make regulations for the security procedures and practices to regulate electronic contracts. This definition of the 'Consumer' has been broadened and various duties and liabilities have been . 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. U.S. Customs and Border Protection wants to help you and your family stay healthy and safe. Your browser is currently blocking notification. Introduction. Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. This paper, therefore, carries out a comparative study of the legal framework for e-commerce and consumer protection in Malaysia and Nigeria respectively. 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. 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. 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. Always use a secure browser. In this regards, the paper briefly. The policy shall cover more concepts, rights . The E-commerce Rules have primarily been formulated with the objective to regulate the E-commerce sector in . Without these legal protections, consumers would be subject to scams, fraud and other illicit activities that put their personal finances and privacy at risk. Rule 2. To minimize the need for governmental legislation or regulation. See the E-Commerce Consumer Awareness for COVID-19 Safety and be aware before you buy. As businesses across Canada and around the world struggle to manage the fallout from COVID-19, e-commerce looks to be one area of commercial activity that is set to remain in strong demand. To protect the growing number of consumers who are active online, federal lawmakers have developed laws and policies designed to help ensure the safety of consumer transactions in e-commerce. Consumer protection laws protect the e-commerce consumer from unfair trade practices. The internet makes it easy for us to access data and news. 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. Law, at times, requires modifications in order for individuals to withstand contemporary complications. These policies should describe: 1. 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. Given that this is a very recent law . 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. However, this would provide for a minimum standard to be followed. There are some businesses that conduct their selling on their own websites. 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. Companies like 4x Buyer Protection services offer registered users a maximum of $500 compensation. 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. To reach the full potential of e-Commerce, the EU has worked on: the revised Payment Services Directive and new rules on cross-border parcel delivery services that are already in force; new rules to stop unjustified geo-blocking; revised consumer protection rules; new VAT rules for the online sale of goods and services. (1) In these rules unless the context otherwise requires, (a) "Act" means the Consumer Protection Act, 2019 (35 of 2019); Having to display a very popular trust seal (like those offered by. 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 underlying intent behind this obligation is to ensure that a level playing field is maintained for all sellers and no unfair method or deceptive practices are adopted by an e-commerce entity (such as deep discounts, freebies, cash back offers and/or EMI options) to influence transactional decisions of the consumers which favour a particular seller. 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. 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. "A marketplace e-commerce entity which seeks to avail the exemption from liability under . CONSUMER PROTECTION IN E-COMMERCE It is worthwhile at this juncture to recall the distinction drawn between cyber-consumer redress and cyber consumer protection. Home Theconsumerprotection Consumer Protection (E-Commerce) Rules, 2020. 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. Internal commerce and consumer protection launches its e-services center in its trial version  2022-11-02T16:53:48.400Z. Would a consent which is accorded through a click wrap agreement be sufficient to ensure compliance under the E-Commerce? Author: Sanjay Kathuria ISBN: 1464815194 Managing all of the legal challenges . 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. Once the purchase is done, consumers may also have difficulties reaching providers or communicating with businesses. 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. Consumer Protection (E-Commerce) Rules, 2020. Electronic commerce, more commonly known as e-commerce, is the buying and selling of goods or services on the internet. 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. 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. Sri Krishna College of Arts and Science; Download full-text PDF Read full-text. Laws and Regulations on Smart Contract in Vietnam: Facts and Solutions, An Empirical Study on the Legal Issues Surrounding Embryonic Stem Cell Research in India, Alternative Dispute Resolution (ADR) with Human Rights through European Legislation, Implementation of International Laws on Marine Pollution: Challenges and Prospects, Professional Responsibility and Ethical Obligation of Lawyers in a Global Pandemic: Case Study of Covid-19 Pandemic Issues and Challenges. The first thing to check is their customer service. Related consumer protection laws . of Consumer Affairs, Food and Public Distribution on July 23, 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. and threat to the violation of consumers' variety of rights in e-commerce. Price of the goods or services offered cannot be manipulated by the e-commerce entities to gain unreasonable profits. Rule 4. The digital revolution has propelled consumers to the forefront of international trade. Duties of e-commerce . 59/16, 4th Floor, Jujhar Tower RD Marg, Kalkaji, New Delhi, Delhi 110019, National Consumer Disputes Redressal Commission, District Consumer Disputes Redressal Commission. To safeguard optimal freedom of expression for advertisers and markers. Authors are invited to submit their research paper in the journal. Information technology has spawned a slew of new products. The Consumer Protection (E-Commerce) Rules, 2020 is the latest addition to the consumer protection regime in India. 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. 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. 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. Room XXVI, Palais des Nations, UNCTAD - Palais des Nations, 8-14, Av. 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. Among these Data Privacy Act No. Consumer Protection: Rules made under Consumer Protection Act, 2019. 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. 10 While there are various challenges in the conduct of e-commerce transactions, the consumer protection in e-commerce transactions is of utmost substance. 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). 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. Jurisdiction includes: Interstate and foreign commerce, including all trade matters within the jurisdiction of the full committee; regulation of commercial practices, including sports-related matters; consumer affairs and consumer protection; consumer privacy and data security; cybersecurity; consumer product safety; product liability; motor vehicle safety; regulation of travel, tourism, and . 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. all forms of unfair trade practices across all models of e-commerce. 1. 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. 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. These Rules primarily envisages the duties & liabilities of ecommerce entities involved in marketing and . The governmental approach to e-commerce in the United States is best described as 'light touch' regulation. 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. Uncertainty of merchantability goods. Consumer Protection in the age of E-Commerce. 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 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.