ASSESSING THE CONSUMER PROTECTION ACT, 2019 IN MY COMMUNITY: PROTECTING E-COMMERCE SHOPPERS

AUTHOR: JIYA SARKAR, SISTER NIVEDITA UNIVERSITY 

The increasing popularity of online shopping has changed the way people do their shopping for the better. However, with the improving opportunities, the concern of protecting consumer rights has also emerged. This study assesses the extent of awareness of such consumer rights among online shoppers in my area, and with particular reference to the implementation of the Consumer Protection Act of 2019, which adopts some of the principles developed under the law to try and deal with challenges associated with the digital economy.

The study looks at some of the provisions of the Act including the formation of the Central Consumer Protection Authority (CCPA) that oversees unfair measures, obligations on e-commerce businesses to give accurate and precise descriptions of the services they offer, and enhanced measures of redressing consumer complaints. This study utilizes structured questionnaires to articulate how consumers know their rights, the history of engaging in e-trading, and the availability of possibilities to resolve complaints in a reasonable manner.

The initial research results already demonstrate how the majority of respondents ignore basic consumer rights. Most consumers do not know crucial matters such as the fine for promoting deceptive adverts, obligation of the seller's identification, and complaint procedures of internet service providers. Low levels of digital literacy, poor awareness campaigns on the Act and poor adherence by online vendors to ensure compliance with the Act increases these problems making consumers the net losers.

KEYWORDS: 

Consumer Protection Act,2019, Online Shopping, Consumer Rights, Consumer Protection Authority (CCPA), Unfair measures, Obligations on e-commerce businesses, Consumer complaints redressal, Structured questionnaires.

What do you mean by the Consumer Protection Act?

Consumer protection involves preventing unfair trade practices in goods and services relating to consumers. It deals with all regulatory systems meant to safeguard consumers against fraudulent and unethical behavior on the part of the sellers, manufacturers, service providers, etc. and grants redressal if their consumer rights were trampled upon.

In India, the rights of consumers are protected by the Consumer Protection Act of 2019. The Consumer Protection Act of 2019 was enacted with the intention to repeal the Consumer Protection Act of 1986. The new Act has a number of provisions to deal with the various problems of consumers in contemporary times, which are based on technology. Apart from having a number of provisions for safeguarding and advancing the consumers' rights. 

Definition of the term 'consumer'

A consumer is a natural individual or group of natural individuals who procure goods and services for their personal use and not for the manufacture or resale purpose. Consumer means a person who purchases any goods or uses any services for consideration, and utilizes the goods for personal purposes or in certain cases for resale or for any commercial use. This is as per Section 2(7) of the Consumer Protection Act, 2019. In defining this consumer, it has been explained that "buys any goods" and "hires or avails any service" also cover all transactions made electronically, be it online or direct selling or teleshopping or multi level marketing. 

The Consumer Protection Act, 2019 is crucial to protect the rights and well-being of consumers in the current modern marketplace. The following are the reasons why it is crucial:

1. Shields Consumer Rights: 

• Guarantees the right to safety, proper information, and the option to easily file complaints. 

• Empowers consumers to make informed choices and fight for justice.

2. Regulates Online Shopping:

• Establishes guidelines for e-commerce websites, such as transparent product information, fast refunds, and seller responsibility.

• Shields consumers against fraud and misleading online practices.

3. Central Consumer Protection Authority (CCPA):

• A government agency that processes complaints, punishes offenders, and promotes fair practices.

4. Faster Complaint Redressal:

• Enables complaints to be registered online and facilitates swift redressal through mediation and consumer courts.

5. Tougher Penalties:

• Makes companies liable for faulty products, spurious advertisements, and unfair trade with fines and penalties.

6. Consumer Education:

• Emphasizes informing individuals about their rights and how to safeguard themselves.

7. Fair and Transparent Markets:

• Promotes enterprises to be truthful, responsible, and ethical.

Online shopping forums are those websites or marketplaces in which consumers are able to buy services and goods online. They consist of dedicated online stores of different purposes and e-commerce websites (like Flipkart and Amazon). Online shopping has gained widespread popularity because of the development of technology and more use of the internet due to its:

• Convenience: doorstep delivery and round-the-clock available.

• Diverse Product Range: Existence of foreign markets and numerous types of products.

• Competitive pricing, including price comparison, discount, and incentive.

•  Personalization: Recommendations provided in accordance with the preference of the customers.

Despite these benefits, customers face various challenges that undermine their confidence and satisfaction in online markets.

1. Product Issues:

→ Defective Products: Customers are given broken or defective products.

→ Mismatch in Description: Products received do not match those shown online.

→ Counterfeit Products: Spurious or lower-quality products being sold by third-party sellers.

2. Delivery Problems:

→ Delayed Shipments: Orders fail to reach customers on time.

→ Non-Delivery of Products: Occasionally, customers don't get their products at all.

3. Return and Refund Problems:

→ Complex Return Policies: Returns can be confusing or difficult.

→Delayed Refunds: Taking too long to receive a refund after a return.

4. Security Risks:

→ Data Privacy Risks: Payment and personal data are abused.

→ Online Payment Frauds: Unauthorized purchases and deceptions can be experienced while making payments.

5. Customer Service Issues:

→Unresponsive Support: Customers can face slow or non-cooperating customer services.

→Lack of Accountability: Sellers and online shops tend to hold hands with each other, so consumers are left with no recourse.

6. Concealed Charges:

→ Surprise Charges: Delivery charges, taxes, or other charges not shown at the time of checkout.

7.Deceptive Reviews:

→Deceptive Feedback: Misleading reviews can create a false impression about products, leading to bad purchasing decisions.

8. Ignorance:

→Most consumers are not aware of their rights under the Consumer Protection Act, 2019, or how to complain against unfair trade practices.

1. Evaluate Consumer Awareness:

• Determine the extent of awareness among consumers about their responsibilities and rights as well as the grievance redressal measures provided under the Consumer Protection Act of 2019.

•  Determine their awareness in terms of online shopping portals and e-commerce websites.

2. Determine Challenges and Patterns:

• Investigate some of the common issues Online Transaction (OT) consumers face like scams, wastage of time, failure of products, violation of privacy and others.

•  Identify psychographics that could result in challenges such as ignorance, unfamiliarity with the law, accessing unscrupulous websites amongst others.

3. Propose Solutions and Raise Awareness:

• Propose measures that will enhance awareness of the consumers regarding their rights and the necessity of web shopping sensibly.

• Advocate for proper enforcement of consumer protection legislation, digital literacy, and the responsibility of e-tailers for safe web shopping.

4. Enhance Consumer Empowerment:

• Emphasize the importance of empowering consumers with proper resources, platforms, and mechanisms for filing complaints and making buying decisions when dealing with online marketplaces.

1. With reference to the Consumer Protection Act Donoghue v. Stevenson (1932) is a landmark Consumer Protection case that established a new legal standard for manufactures:

This case involves the Doctrine of Negligence. Mrs. Donoghue consumed a decomposed snail in ginger beer, causing health problems. She appealed to the House of Lords, citing negligence by the manufacturer, Mr. Stevenson.

The court ruled in favour of the plaintiff, establishing that the respondent's negligence in duty of care caused harm, enabling the plaintiff to seek compensation for the resulting damages.1

2. The case of Mr. Ashwani Chawla vs. Flipkart Internet Pvt. Ltd. was tried by State Consumer Disputes Redressal Commission, Chandigarh on February 20, 2024. It alleged that the OnePlus used phone, which is sold by the seller Bathla Teletech through Flipkart as a new product, was manufactured by OnePlus Technology India.

• Problem: Mr. Chawla purchased the OnePlus 11R 5G from Flipkart in July 2023. For the first time after using the device for some time, he discovered that it had been activated four months before the date he received it from Flipkart. It was a rude shock because a used device; all efforts to get redressed failed through Flipkart, the seller, and the manufacturer.

• Judgement: • The court showed that the defendants were carrying out unfair trade practices, and no response was satisfactory for the customer. Along with this, the court rebuked Flipkart for not making sure of the authenticity of its marketed products via its site.

 •  The costs of the mobile phone worth ₹40,941 must be paid along with ₹49 for extra handling, which was excessively charged by the defendants.

• Ordered to pay ₹30,000 as compensation: ₹10,000 each as compensation for harassment of customers, cost of litigation, and contribution to Consumer Legal Aid Account.

• The Commission made it clear that such practices, which include issuance of double invoices, are violations under the Consumer Protection Act, 2019 and the Guidelines for Prevention of Dark Patterns, 2023.

This case demonstrates consumer awareness and the liability of a website through the respective provisions of consumer protection laws. It presents a very important example in dealing with the grievance of online shopping.2

1 https://search.app/yACFH2R8ck6h5QEZ9

2https://indiankanoon.org/doc/17939411/

The Awareness Survey on Consumer Protection for Online Shopping Forums in the Context of the Consumer Protection Act, 2019 indicates that 86.7% of the surveyed respondents, mostly between the ages of 18–25, have high awareness of their consumer rights. While 60% shop online on a regular basis and 40% on an occasional basis, 73.3% claim to be satisfied with e-commerce experiences, though just 26.7% utilized consumer forums to settle disputes even as 93.3% knew of their existence. Clothing and accessories are the top items bought (66.7%), with grocery and home furniture (13.3% each) following in second place. Transparency on internet shopping websites (60%), online social media marketing (26.7%), and workshops (13.3%) are the methods of choice to create awareness. Positively, 73.3% favor education drives, which demonstrate a strong call for localized information campaigns to equip consumers and drive the enforcement of the Act.

During this task, I read numerous articles, journals, and video blogs that projected some of the problems with the Consumer Protection Act, 2019, including consumer unawareness and redressal mechanism issues. To better comprehend these problems, I created formal questionnaires for online consumers in my area, including a focus on consumer awareness regarding rights and experiences with complaint processes. The feedback served to project key issues and evaluate the implementation efficiency of the Act.

Open and closed research methods have been utilized together with surveys and interviews, following a traditional research approach. The questionnaires assessed the perceptions of local online shoppers regarding their knowledge of consumer rights under the Consumer Protection Act, 2019, while interviews highlighted in-depth challenges faced by them. Through this combination, it was possible to evaluate how effective the Act is in protecting the consumers.

Based on the survey conducted regarding awareness of consumer protection for online shopping forums in the context of the Consumer Protection Act, 2019, it can be learnt a lot on how consumers, predominantly the young, understand and react to their rights. An astonishing 86.7 percent are within 18-25 years old which indicates the majority of the aware people are young. While most respondents are online shoppers by at 60% yet there is an apparent gap in the consumer's use of consumer protection forums as only 26.7% make use of them when conflicts arise, yet again, there is a very high awareness level at 93.3% of the forums, while many consumers are still hesitant or do not know how to best utilize such forums.

The effectiveness of the Consumer Protection Act is seen to be "somewhat effective" in protecting online shoppers since 73.3% of the respondents share this opinion. There is also a need for education and awareness-building, since a large percentage of them cannot recall any consumer protection campaign in their locality. Moreover, most consumers voice support for public education and awareness-building on consumer rights.

Therefore, though the Consumer Protection Act of 2019 has a sound foundation regarding awareness about consumer rights, much development is yet to be met. Increasing consumer interest in protection mechanisms through better information on e-commerce websites, campaigns, and localized awareness programs may develop consumer confidence and empower more people to fight for their rights in the electronic market.

1. https://blog.ipleaders.in/consumer-protection-act-2019-2/

2. https://byjus.com/free-ias-prep/consumer-protection-act-2019/

3. https://search.app/418mp54RWhy2ri6Z9

4. https://indiankanoon.org/doc/17939411/

5. https://search.app/yACFH2R8ck6h5QEZ9