Lok Sabha Question No. 205 (STARRED), answered on 2022-12-21
Subject: Protection of Consumer Rights for Online Purchase
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: N.K. Premachandran

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK  SABHA

## STARRED QUESTION NO. *205

TO BE ANSWERED ON 21.12.2022

## PROTECTION OF CONSUMER RIGHTS FOR ONLINE PURCHASE

## *205.  SHRI N.K. PREMACHANDRAN:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government proposes to protect the rights of consumers purchasing goods through online and if so, the details of action taken thereon;
- (b) whether the Government proposes to amend the Consumer Protection Law for ensuring protection of rights of consumers in e-commerce and if so, the details thereof;
- (c) whether the Government proposes to initiate action for ensuring warranty offered by the companies to the consumers and if so, the action taken thereon;
- (d) whether it has come to the notice of the Government that online service centers and manufacturers of the goods are not providing receipts to the complaints lodged by the consumers and failed to provide the service as agreed and if so, the action taken by the Government to protect the rights of consumers; and
- (e) whether the Government proposes to make dealers and retailers also liable for ensuring warranty and if so, the action taken thereon?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h ¼Jh ih;w"k xks;y½

THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI PIYUSH GOYAL)

(a) to (e)  :   A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA  STARRED  QUESTION  NO.*205  FOR  21.12.2022  REGARDING PROTECTION OF CONSUMER RIGHTS FOR ONLINE PURCHASE.

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(a),  (b)  &  (d):  To  protect  the  rights  of  consumers  purchasing  goods  through  e-commerce,  the Central Government has notified the Consumer Protection (E-commerce) Rules, 2020. The rules were notified and came into force on 23 rd July, 2020.

The rules have been notified under Section 101(zg) read with Section 94 of the Consumer Protection  Act,  2019  wherein  the  Central  Government  has  been  empowered  to  take  such measures  as  may  be  prescribed  for  the  purposes  of  preventing  unfair  trade  practices  in  ecommerce and to protect the interest and rights of consumers.

The rules prescribe the duties of e-commerce entities, liabilities of marketplace e-commerce entities,  duties  of  sellers  on  marketplace  and  duties  and  liabilities  of  inventory  e-commerce entities, which inter-alia include:

- i. Prominent  display  to  users,  in  a  clear  and  accessible  manner  on  its  platform  -  legal name, geographic address of its headquarters and all branches, contact details like email  address,  landline  and  mobile  numbers  of  customer  care  as  well  as  of  grievance officer
- ii. Establish  adequate  grievance  redressal  mechanism  having  regard  to  the  number  of grievances  and  appoint  a  grievance  officer  for  consumer  grievance  redressal.  The grievance  officer  is  required  to  acknowledge  the  receipt  of  any  consumer  complaint within 48 hours and redress the complaint within 1 month.
- iii. In  case  of  offering  imported  goods  for  sale,  mention  the  name  and  details  of  any importer from whom it has purchased such goods or services, or who may be a seller on its platform.
- iv. To effect all payments of accepted refund requests of the consumers as prescribed by the  RBI  or  any  other  competent  authority  under  any  law  for  the  time  being  in  force, within a reasonable period of time, or as prescribed under applicable laws.
- v. Not to adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

Further,  the  Department  of  Consumer  Affairs  operates  a  National  Consumer  Helpline (NCH)  wherein  the  consumer  can  lodge  their  grievances.  The  NCH  acts  as  a  pre-litigation mechanism which receives grievances of consumers through telephone (short code 1915), web portal,  letters,  SMS,  emails  etc.  and  Mobile App. These grievances are  then taken up with the concerned entities for resolution.

All the complaints lodged with NCH are acknowledged through a docket number.

(c) & (e) :  Giving to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof constitutes  an  'unfair  trade  practice'  under  the  Consumer  Protection  Act,  2019.  The  Act  also provides for a product liability action against product manufacturers, product sellers and product service providers.

A product manufacturer shall be held liable if the product does not conform to the express warranty  even  if  he  proves  that  he  was  not  negligent  or  fraudulent  in  making  the  express warranty of a product.

A  product  seller  shall  be  liable  where  he  has  made  an  express  warranty  of  a  product independent of any express warranty made by a manufacturer and such product fails to conform to the express warranty made by the product seller.

A product service provider shall be liable for a product liability action, if the service did not conform to the express warranty or the terms and conditions of the contract.

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