E-Commerce companies now comes under Consumer Protection Act 2019.

The Government of India has announced that the Consumer Protection Act 2019 shall become mandatory to follow and abide by the E-commerce companies from 27th July 2020 onwards. The act was supposed to be mandated in the country since 20th July but was delayed and hence shall come into force now. The new laws ensure more sets of rights for the consumer while putting a stringent hold on the workings of the e-commerce companies. Under the new Act, if the consumer feels cheated while online shopping, the laws will ensure they get their justice. The new sets of laws ensure better protection of consumers especially since the traffic for online shoppers has increased manifolds in the previous years. According to the laws despite the company is local or international, the consumer rights of the buyer shall be ensured and the company has to take care of the interests of the consumer and that shall be policed by the law. The laws mandate penalty and punishment for the companies who break it and include a complete refund for the consumer if they cancel an order. Damaged goods after delivery shall be liable to penalty and information like a refund, exchange, and guarantee-warranty have to be made available on the portal of e-commerce companies. Details like origin and manufacture of the product have to be enlisted on the website and hidden or extra charges shall be restricted.

“Consumer Protection Act 2019 will be a significant tool in protecting consumer rights; provides for simplifying the consumer dispute adjudication process and introduces the concept of product liability” – stated Shri Ram Vilas Paswan (Minister of Consumer Affairs, Food and Public Distribution). Other Important factors of the new consumer act, specifically focusing on the E-commerce companies, include:

• E-commerce companies will have to pay for all kinds of charges along with the price of goods and services.
• The manufacturing date and expiry date of the product will have to be mentioned on the respected portal.
• Information about which country the product belongs to shall be mentioned.
• E-commerce companies cannot make profits unethically.
• The mess in the price of services and discrimination with customers will not be allowed.
• E-commerce companies have to guarantee payment methods and their security.
• Product information such as address & contact number has to be compulsorily mentioned.
• Transparency and sources regarding the rating of the product have to be stated for the consumers.
• If the customer wants to complain about the product, then the complaint number of the customer will also have to be made available on the website.

This new act has strengthened the rights of the consumers, making sure that they are not being exploited by the new age of online shopping. This act shall also prove to attract customers towards online shopping platforms as now they will be better informed about their rights and will feel safe to buy products online.

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