Lok Sabha Question No. 2948 (UNSTARRED), answered on 2023-12-20
Subject: Online Companies Violating Consumer Act
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Mitesh Rameshbhai (Bakabhai) Patel, Shardaben Anilbhai Patel

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

## Department of Consumer Affairs

LOK SABHA UNSTARRED QUESTION NO.2948 TO BE ANSWERED ON 20.12.2023

## ONLINE COMPANIES VIOLATING CONSUMER ACT

2948.  SHRI MITESH RAMESHBHAI PATEL (BAKABHAI):

SHRIMATI SHARDABEN ANILBHAI PATEL:

## 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 has enhanced the strictness on online companies violating the Consumer Act and using dark patterns; and
- (b) if so, the details thereof and the action taken or proposed to be taken against such online companies?

## 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) & (b)    : Dark patterns involve using design and choice architecture to deceive, coerce, or influence consumers into making choices that are not in their best interest. Dark patterns encompass a wide range of manipulative practices such as drip pricing, disguised advertisement, bait and switch, false urgency etc.

Such  practices  fall  under  the  category  of  "unfair  trade  practices"  as  defined  under  the  Consumer Protection Act, 2019. The Central Consumer Protection Authority, in exercise of the powers conferred by Section 18 of the Consumer Protection Act, 2019, has issued 'Guidelines for Prevention and Regulation of Dark Patterns,  2023'  on  30th  November,  2023  for  prevention  and  regulation  of  dark  patterns  listing  13 specified dark patterns.

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 customer grievance redressal.

The  CCPA  has  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.

The Bureau of Indian Standards (BIS) has notified framework on 'Online Consumer Reviews  Principles and  Requirements  for  their Collection, Moderation  and  Publication'  on 23.11.2022  for safeguarding  and  protecting  consumer  interest  from  fake  and  deceptive  reviews  in  e-commerce.  The standards are voluntary and are applicable to every online platform which publishes consumer reviews. The guiding principles of the standard are integrity, accuracy, privacy, security, transparency, accessibility and responsiveness.

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