Lok Sabha Question No. 2284 (UNSTARRED), answered on 2023-08-02
Subject: Lack of Laws in Online Buying
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sudarshan Bhagat

## Government of India

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2284 (OIH)

TO BE ANSWERED ON 02.08.2023

## LACK OF LAWS IN ONLINE BUYING

2284.  SHRI SUDARSHAN BHAGAT: (OIH)

## 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 a large number of consumers are suffering due to lack of proper laws to cover online buying and selling;
- (b) if so, the details thereof, State-wise; and
- (c) if not, the reasons therefor?

## ANSWER

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

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

(a)  to  (c)  :  To  further  strengthen  the  provisions  for  consumer  protection  especially  in  the  new  era  of globalization, online platforms, e-Commerce markets etc., the Consumer Protection Act, 2019 was enacted to replace  the  Consumer  Protection  Act  1986.  It  inter-alia,  provides  for  improved  protection  for  consumers involved in online transactions. The Consumer Protection Act 2019 has widened the scope of the definition of "consumer" to include persons who buy or avail of goods or services online or through electronic means which was not present in the Consumer Protection Act 1986. The Consumer Protection Act 2019 has also included definition  of  advertisement  as  any  audio  or  visual  publicity,  representation,  endorsement  or  pronouncement made by means of, inter-alia, electronic media, internet or website.

Under the provisions of the Consumer Protection Act, 2019, a Central Consumer Protection Authority (CCPA) has been established w.e.f 24.07.2020 to regulate matters, inter alia, relating to false or misleading advertisements which are prejudicial to the interests of public and consumers as a class.

The CCPA has notified the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on 9 th June, 2022  with the objective to curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements. As per these guidelines, due diligence is required for endorsement of advertisements so that any such endorsement in an advertisement must  reflect  the  genuine,  reasonably  current  opinion  of  the  individual,  group  or  organisation  making  such representation  and  must  be  based  on  adequate  information  about,  or  experience  with,  the  identified  goods, product or service and must not otherwise be deceptive. Further, these guidelines state that where there exists a connection between the endorser and the trader, manufacturer or advertiser of the endorsed product that might materially affect the value or credibility of the endorsement and the connection is not reasonably expected by the audience, such connection shall be fully disclosed while making the endorsement.

The CCPA has issued advisories to, inter-alia, e-commerce companies to desist from manufacturing, selling or listing of products or services which are dangerous to life of the consumers which included selling and listing of car seat belt alarm stopper clips, illegal sale and facilitation of wireless jammers and also advised all  marketplace  e-commerce  platforms  to  display  information  provided  by  sellers  as  per  the  E-Commerce Rules, 2020. CCPA has also issued two safety notices cautioning consumers against buying goods that do not hold valid ISI Mark and violate compulsory BIS standards, such as Helmets, Pressure Cookers and Cooking gas  cylinders  and  other  household  goods  including  electric  immersion  water  heaters,  sewing  machines, microwave ovens, domestic gas stoves with LPG etc.

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.  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  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 Advertising Standards Council of India (ASCI), e-commerce companies, industry associations etc. The Department of Consumer Affairs 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.

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