Impact of Consumer Protection Act, 2019 On E-Commerce

Impact of Consumer Protection Act,
2019 On E-commerce
The fundamentals of the Consumer Protection Act, 2019 ('Act') that came into force on 20 July 2020 are
transparency and 'accountability.'
Under the Act for the Growth of the E-Commerce Sector and the Protection of Consumer Rights, the
Ministry of Consumer Affairs, Food and Public Distribution have notified a set of Consumer Protection
(E-Commerce) Laws, 2020 ('Rules').
This concept of the 'consumer' has been broadened and numerous duties and obligations have
been placed on e-commerce organizations to put the e-commerce industry within its limits.
The words "buy any goods" and "hires or avails any services" now include offline or online purchases by
electronic means or by electronic means teleshopping or direct selling or multi-level marketing.
The Rules cast various duties and liabilities upon e-commerce

entities and sellers, and the same are as follows:
1.Duties of Seller on Marketplace
 Merchants should keep up reasonable exchange practice and not engage in any sort of
unreasonable exchange practice which incorporates distorting themselves as a shopper
and posting counterfeit surveys about an item.
 They can't deny their obligation to take merchandise back while offering products
through commercial center substance and can't pull out or end administrations bought or
consented to be bought.
 The obligation to repay the thought paid by the buyers is likewise given occasion to feel
qualms about the dealer, if the products or administrations are lacking or imperfect or of
various quality when contrasted with what was appeared in pictures or are conveyed late
from the booked time. Notwithstanding, the merchant isn't dependable if the late
conveyance is because of unavoidable causes.
 The dealer should make a composed agreement with the concerned commercial center
internet business element to embrace or request such a deal or offer.
 It is compulsory for a vender to name a complaint official for purchaser complaint
redressal and to ensure that the said official recognizes the receipt of any shopper
protest inside 48 hours and reviews the objection inside one month from the date of
receipt of the grievance
 Vender is needed to guarantee that the notice about qualities, access, and utilization
states of the merchandise and ventures are right and predictable with the genuine item.
 Dealer is likewise under a commitment to keep up straightforwardness with the individual

internet business substance by giving it its lawful name, head geographic location of its
central command and all branches, the name and subtleties of its site, its email address,
client care contact subtleties, for example, fax, landline, and versatile numbers and
where relevant alongside its GSTIN and PAN subtleties.
 Vender is denied at controlling costs as he is presently subject to give the online

business substance on its foundation or site: (a) all legally binding data needed to be
unveiled by law; (b) complete cost in a solitary figure of any great or administration,
alongside the separation cost for the great or administration, demonstrating all the
necessary and intentional charges, for example, conveyance charges, shipping charges,
movement charges and the pertinent assessment, as relevant.
 Merchant is needed to reveal all the applicable data which is needed by the purchaser to
settle on buying an item like the nation of birthplace, the name and contact numbers,
and assignment of the complaint official for buyer complaint redressal or for announcing
some other issue, name and subtleties of the shipper, and ensures identified with the
validness or validity of the imported items.
2. Duties of E-commerce
 Every e-commerce entity must be incorporated under the Companies Act, 1956 of the
Companies Act, 2013 or a foreign company covered under clause (42) of section 2 of the
Companies Act, 2013 or an office, branch, or agency outside India owned or controlled
by a person resident in India as provided in sub-clause (iii) of clause (v) of section 2 of
the Foreign Exchange Management Act, 1999 and the entities are required to appoint a
nodal person of contact or an alternate senior designated functionary who is resident in
India, to ensure compliance with the provisions of the Act or the rules made thereunder.
e-commerce entity shall not engage itself in any unfair trade or malicious practice,
whether in the course of business on its platform or otherwise.
 They must establish adequate grievance redressal mechanisms and a grievance officer
shall be appointed who shall ensure acknowledgment of the consumer complaint within
48 hours and the company shall redress the complaint within one month from the date of
receipt of the complaint.
 It shall provide the following information in a clear manner on its platform, which can be
easily visible by the consumers: legal name of the e-commerce entity; principal
geographic address of its headquarters and all branches; name and details of its website;
and contact details like e-mail address, fax, landline and mobile numbers of customer
care as well as of grievance officer.
 It cannot ask for cancellation charges on consumers canceling after confirming purchase
unless similar charges are also borne by the e-commerce entity and it has also been
prohibited from manipulating the price on its platform and from discriminating the
consumers of the same class.
 If any e-commerce entity offers imported goods or services for sale, it has to mention the
name and details of any importer from whom it has purchased such goods or services, or
who may be a seller on its platform.
 Every e-commerce entity must endeavor to become a partner in the convergence process
of the National Consumer Helpline of the Central Government.
 Every e-commerce entity has to make their payment process effective towards accepting
refund requests of the consumers as prescribed by the Reserve Bank of India or any other
competent authority under any law for the time being in force, within a reasonable period,
or as prescribed under applicable laws.
 All e-commerce entities have to record the consent of a consumer for the purchase of any
good or service offered on its platform where such consent is expressed through an
explicit and affirmative action, and not otherwise.
3. Additions in the Act applicable on E-commerce Entities and Sellers

 Filing Complaints Jurisdiction: The territorial and monetarjurisdiction for filing compl
aints has been extended. Now, unlike before, a complainant can present a compl
aint from anywhere in the country. The process of litigation has been simplified to
make it beneficial for customers.
 Product Liability : The manufacturers and sellers of products and services have been
made liable for any harm caused by the product to the consumers, subject to different
conditions and exceptions provided with respect to the liability of manufacturers and
sellers respectively. One of the exceptions provided is that a product manufacturer shall
not be liable for failure to instruct or warn about a danger which is obvious or commonly
known to the user or consumer of such product or which, such user or consumer, ought
to have known, taking into account the characteristics of such product.4 Now, what will
be considered as 'obvious' and 'common' can differ from consumer to consumer.

Impact of Consumer Protection Act, 2019 On E-Commerce

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Impact of Consumer Protection Act,

electronic means or by electronic means teleshopping or direct selling or multi-level marketing.

The Rules cast various duties and liabilities upon e-commerce

 Dealer is likewise under a commitment to keep up straightforwardness with the individual

 Vender is denied at controlling costs as he is presently subject to give the online

3. Additions in the Act applicable on E-commerce Entities and Sellers

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