Lok Sabha Question No. 1659 (UNSTARRED), answered on 2025-07-30
Subject: Unfair Trade Practices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Dr. Sambit Patra

1659.  DR. SAMBIT PATRA: (OIH)

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

- (a) whether the Government has received complaints from individuals using Android phones and iPhones regarding the charging of differential rates for the same service and if so, the details thereof;
- (b) whether similar complaints have also been received against food delivery apps, online travel booking apps, movie booking apps, etc. and if so, the details thereof;
- (c) whether the present Consumer Protection Act comprises adequate provisions to prevent such unfair trade practices;
- (d) whether the Government is likely to consider any amendment in the Consumer Protection Act to deal with such unfair trade practices; and
- (e) if so, the details thereof?

## Government of India

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

## LOK SABHA

## UNSTARRED QUESTION NO.1659

TO BE ANSWERED ON 30.07.2025

## UNFAIR TRADE PRACTICES

## ANSWER

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

(a) to (e) : 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 Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted.

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.

In terms of the provisions of these rules, no e-commerce entity shall:

- a) Manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price having regard to the prevailing market conditions, the essential nature of the good or service, any extraordinary circumstances under which the good or service is offered, and any other relevant consideration in determining whether the price charged is justified.

## ORIGINAL IN HINDI

- b) Discriminate  between  the  consumers  of  the  same  class  or  make  any  arbitrary  classification  of consumers affecting their rights under the Act.

These rules also provide that no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

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. CCPA, under Section 19 of the Consumer Protection Act, is empowered to, upon receiving any information, complaint under Section 17 or directions from the Central  Government,  or  on  its  own  motion,  conduct  or  cause  to  be  conducted  a  preliminary  inquiry  to determine whether there exists a prima facie case of violation of consumer rights, unfair trade practices or false or misleading advertisements by any person, which is prejudicial to the public interest or the interests of consumers. If satisfied that such a prima facie case exists, the CCPA shall direct an investigation to be carried out by the Director-General or the District Collector.

In  order  to  strengthen  consumer  protection,  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.

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