Sansad TV Perspective: Protecting e-Comm Consumers

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: Protecting e-Comm Consumers

Anchor: Teena Jha

Participants:

1. Pawan Kumar Agarwal, Former Secretary, Department of Consumer Affairs, GoI
2. Pushpa Girimaji, Advocate, Consumer Safety
3. Suresh Misra, Centre for Consumer Studies, IIPA
4. Kanishka Arumugam, Executive Member, CII

Context:

Every 24th day of December is recognized as the National Consumer Day which focuses on the significance of consumer rights protection and intends to introduce consumer friendly policies along with speedy resolution of consumer complaints.

The progressive flow of time backed by digital revolution has shown its implications in the commerce sector that witnessed the landmark onset of E- Commerce. With the emergence of e-commerce, there are an influx of challenges that target consumer rights. This adds one essence to the discussion of protecting the consumers of e-commerce.

Background :

• Every 24th day of December is recognized as the National Consumer Day which is backed by the fact that on this day, 1986 the Consumer Protection Act got the Presidential assent.
• This was the first time the consumers were empowered to avail certain rights that serve as an integral part of governance.
• The act of 1986 was replaced by the Consumer Protection Act of 2019 and provided widened scopes of consumer safety and protection.

Aim of National Consumer Day:

• This day acknowledged the importance of strengthening consumer rights and aimed at leading India in the One Nation One Standard along with more awareness spread across the consumers.
• Emboldening the five pillars of Consumer Rights has been a major objective of the celebration.

Measures taken by the Government for protecting Consumer Rights:

• The Bureau of Indian Standards (BIS) is working towards improving the standards and quality of products for the consumers.

Also read about BIS Act, 2016 in the linked article

• Five Major initiatives of the government to assure timely redressal of complaints include :

1. Direct selling rules
2. Simplified Mediation Rules
3. Guidelines against misleading advertising
4. Introducing new E – Commerce Rules
5. Hallmarking offers consumers a long term right to quality, purity and transparency.

• The E- Dakhil portal has facilitated a speedy resolution of complaints filed by the consumers. This portal has been largely instrumental in addressing customer complaints during the pandemic. There are 544 consumer commissions that enable e- filing of a huge number of cases ensuring accountability towards consumer rights.
• E-books on Landmark Judgements on consumer law and practice and a handbook on Mediation under Consumer Protection Act 2019 were inaugurated.
• The National Consumer Helpline portal has been set up to protect the consumers from cybercrime.
• The BIS Care Mobile app assists consumers to verify the authenticity of the standard mark on products.
• Hallmarking has been made mandatory for 256 districts with proper guidelines for establishment of offsite hallmarking centers.
• The National Test House carried out testing of packaged drinking water for consumers and manufacturers. Water sample testing was done in rural areas with the help of a Mobile Drinking Water Testing Van.
• The National Test House also created a toy testing facility to ensure that toys are safe for children.

Highlights of the Discussion:

• The significance of e-commerce has gained attention especially at time of pandemic where the entire value chain and flow of goods and services were dependent on e-commerce.
• It was discussed that the emergence of the e-commerce market has created several avenues for online frauds, counterfeit products that affect consumer safety.
• In order to address certain issues faced by the consumers, the Department of Consumer Affairs has introduced comprehensive rules and regulations with special attention to criminal activities experienced by the consumers by directing them through the Ministry of Home Affairs.
• With the operation of the National Consumer Helpline the grievance redressal system improved but there exists a lack of clarity in the procedure of the grievance redressal mechanism.
• There is an extensive challenge born out of the digital divide for which it becomes difficult for many consumers to be aware of the initiatives such as the National Consumer Helpline.

  Ways Ahead:

• With the changing technology and trending trade policies it is recommended that there needs to be effective interventions by the government to implement the consumer outreach programmes.
• There is an essential role played by social media in spreading awareness among consumers which can be further promoted and added on to the exemplary campaign like “ Jago Grahak Jago”. Special and effective awareness campaigns must be brought into the rural areas.
• Adjournments in the consumer courts delay the dispute resolution process and obstruct the consumer justice system which is a violation of the 2019 law on Consumer Protection Act. Effective interventions by regulators are required for the faster delivery of justice. The complex procedure to deliver consumer justice needs to be simplified.
• It is suggested by an expert that the cases which are below the amount of Rs 2 lakhs must be resolved without any adjournments and lawyers. This would avert the major challenges of the quick redressal process.
• The compensatory mechanisms are in dire need of improvement as a victimized consumer has to sustain a long period to get justice. Better compensation would revive the faith of the consumer and establish a sustainable model of governance thereby broadening the purview of consumer rights.
• Data privacy and data security of the consumers must be ensured to prevent cybercrime threats.

Read more summaries of Perspective in the link.

Perspective: Protecting e-Comm Consumers:- Download PDF Here