Lok Sabha Question No. 4221 (UNSTARRED), answered on 2025-03-26
Subject: Sale of Low-quality Products on e-Commerce Platforms
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Sanatan Pandey

## Government of India

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4221

TO BE ANSWERED ON 26.03.2025

## SALE OF LOW-QUALITY PRODUCTS ON E-COMMERCE PLATFORMS

4221.  SHRI SANATAN PANDEY: (OIH)

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:

- (a) the  steps  taken  by  the  Government  to  check  the  sale  of  spurious  and  low-quality  products  on  ecommerce platforms along with the details thereof; and
- (b) the new initiatives taken by the Government to make consumers aware of their rights and simplify the process of filing complaints along with the details thereof?

## ANSWER

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L.VERMA)

(a)  &  (b)  :  Department  of  Consumer  Affairs  is  continuously  working  for  consumer  protection  and empowerment  of  consumers  by  enactment  of  progressive  legislations.  With  a  view  to  modernize  the framework  governing  the  consumer  protection  in  the  new  era  of  globalization,  technologies,  e-commerce markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted.

The Consumer Protection Act, 2019 provides for a three tier quasi-judicial machinery at District, State and Central levels commonly known as 'Consumer Commissions' for protection of the rights of consumers and to provide simple and speedy redressal of consumer disputes including those related with unfair trade practices.  The  Consumer  Commissions  are  empowered  to  give  relief  of  a  specific  nature  and  award compensation to consumers, wherever appropriate.

Salient features of the new Consumer Protection Act, 2019 are establishment of a Central Consumer Protection Authority(CCPA); simplification of the adjudication process in the Consumer Commissions such as  enhancing  pecuniary  jurisdiction  of  the  Consumer  Commissions,  online  filing  of  complaint  from  the Consumer Commission having jurisdiction over the place of work/residence of the consumer irrespective of the place of transaction, videoconferencing for hearing, deemed admissibility of complaints if admissibility is not decided within 21 days of filing; provision of product liability; penal provisions for manufacture/sale of adulterated products/spurious goods; provision for making rules for prevention of unfair trade practice in ecommerce and direct selling.

Section 90 and 91 of the Consumer Protection Act, 2019 provide for punishment for manufacturing for sale or for storing or selling or for distributing or importing any product containing an adulterant or spurious goods, which includes imprisonment or fine depending on the extent of injury to the consumer.

Under  the  provisions  of  the  Consumer  Protection  Act,  2019,  the  Central  Consumer  Protection Authority (CCPA), an executive agency, came into existence on 24.07.2020. It is designed to intervene, to prevent consumer detriment arising from unfair trade practices and to initiate class action(s), including the enforcement of recalls, refunds and return of products. Its core mandate is to prevent and regulate false or misleading advertisements which are prejudicial to the public interest.

To  safeguard  consumers  from  unfair  trade  practices  in  e-commerce,  the  Department  of  Consumer Affairs  has  also  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 consumer grievance redressal.

The  CCPA  has  also  notified  the  Guidelines  for  Prevention  of  Misleading  Advertisements  and Endorsements for Misleading Advertisements, 2022 on 9th June, 2022. These guidelines inter-alia provide for; (a) conditions for an advertisement to be non-misleading and valid; (b) certain stipulations in respect of bait  advertisements  and  free  claim  advertisements;  and,  (c)  duties  of  manufacturer,  service  provider, advertiser and advertising agency. These guidelines states that due diligence is required for endorsement of advertisements such that any 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.

The  CCPA issued  the  'Guidelines  for  Prevention  and  Regulation  of  Dark  Patterns,  2023'  on  30th November 2023. These guidelines address and regulate 13 specific dark patterns identified in the e-commerce sector, aiming to prevent deceptive practices that mislead consumers.

Bureau  of  Indian  Standards  (BIS)  introduced  the  framework  on  'Online  Consumer  Reviews  Principles and Requirements for their Collection, Moderation, and Publication' on 23rd November 2022. This framework safeguards consumer interests by addressing fake and deceptive reviews in e-commerce. While the standards are voluntary, they apply to all online platforms that publish consumer reviews and are guided by principles such as integrity, accuracy, privacy, security, transparency, accessibility, and responsiveness.

The  Department  of  Consumer  Affairs  has  been  generating  consumer  awareness  by  undertaking country-wide multimedia awareness campaigns under the aegis of "Jago Grahak Jago" to reach out to every consumer  across  the  country  by  utilizing  traditional  media  like  All  India  Radio,  Doordarshan,  fairs  & festivals, etc. as well as social media. Through simple messages and jingles, consumers are made aware about the  consumer  rights,  unfair  trade  practices,  consumer  issues  and  the  mechanism  to  seek  redressal.  The Department  has  also  been  releasing  grant-in-aid  to  States/UTs  for  generating  consumer  awareness  at  local level.  During  the  current  financial  year,  the  Department,  under  consumer  awareness  scheme,  undertook campaigns through All India Radio (AIR) during T20 World Cup, IVRS (Interactive Voice Response System) campaign,  Pan-India  interaction  session  with  panchayats,  for  generating  awareness  about  consumer  rights, standards, redressal mechanism, etc.

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