Lok Sabha Question No. 3406 (UNSTARRED), answered on 2023-08-09
Subject: Consumer Financial Behaviours
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Behanan Benny

## Government of India Ministry of Consumer Affairs, Food and Public Distribution

## Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 3406

TO BE ANSWERED ON 09.08.2023

## CONSUMER FINANCIAL BEHAVIOURS

3406. SHRI BENNY BEHANAN:

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

- (a) whether the Government has proposed any collaboration or coordination between the Finance Ministry  and  the  Ministry  of  Consumer  Affairs  to  build  consumer  awareness  on  consumer financial behaviour especially online, if so, the details thereof; and
- (b) whether the Government has a proposal to remove the duplication of unnecessary compliances and  reflect  the  reality  that  e-commerce  is  a  complex  mix  of  digital  and  physical  worlds  to protect consumers and promote innovation, if so, the details in this regard?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ( श्री अश्विनी कु मार चौबे )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI ASHWINI KUMAR CHOUBEY)

(a)  &  (b)  :  The  Department  of  Consumer  Affairs  holds  the  mandate  to  safeguard  and  promote consumer interests and rights. Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as  a  person  who buys  goods or hires or avails of services for  a consideration that has been paid or promised or partly paid and partly promised, or under any system of deferred payment. This includes any  user  of  such  goods  or  beneficiary  of  such  services  other  than  the  person  who  buys  or  hires  or avails of the goods or services, when such use or benefit is made with the approval of the person who buys or hires or avails of the goods or services. However, a consumer does not include a person who obtains  goods  for  resale  or  for  any  commercial  purpose  or  a  person  who  avails  of  services  for  any commercial purpose.

Section  2(21)  of  the  Consumer  Protection  Act,  2019  defines  goods  as  movable  property, including "food" as defined in the Food Safety and Standards Act, 2006. Meanwhile, Section 2(42) defines  services  as  offerings  to  potential  users,  in  various  sectors  such  as  banking,  financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information.

There are various regulators for the aforementioned sectors. Department of Consumer Affairs engages  in  consultations,  meetings,  and  deliberations  as  necessary  while  framing  sector  specific rules/regulations.

The  Consumer  Protection  Act,  2019  explicitly  includes  e-commerce  transactions  within  its scope, defining e-commerce as the buying or selling of goods or services including digital products over digital or electronic network.

To  safeguard  consumers  from  unfair  trade  practices  in  e-commerce,  the  Department  of Consumer Affairs has already notified the Consumer Protection (E-commerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019. These rules, inter-alia, outline the responsibilities of e-commerce  entities  and  specify  the  liabilities  of  marketplace  and  inventory  e-commerce  entities, including provisions for customer grievance redressal.

The  Department  of  Consumer  Affairs  takes  a  proactive  approach  in  tackling  the  challenges presented  by  the  ever-evolving  online  sector.  Recently,  the  Department  has  noticed  emergence  of unfair trade practices known as 'dark patterns' which involve using design and choice architecture to deceive, coerce, or influence consumers into making choices that are not in their best interest.

The  Department  of  Consumer  Affairs  (DoCA)  conducted  an  interactive  consultation  in Mumbai  on  June  13,  2023  with  various  stakeholders  including  e-commerce  companies,  industry associations etc.

In line with these efforts, the Department of Consumer Affairs, Government of India, has urged the e-commerce companies, industry associations to refrain from indulging in any design or pattern in the online interfaces of their platform that may deceive or manipulate consumer choices and fall into the category of dark patterns.

*****