Consumer rights in E-Commerce Transaction


In a business environment, consumers are the most crucial components. A business isn’t checked on in separation yet is constantly considered in a mix with the consumers of its great and administrations. Given such a significant level of significance that a purchaser has in a business organisation, it involves incredible disgrace that their buyer rights are not secured because of non-accessibility of powerful and tough laws and the incapable redress instruments, uniquely in web-based business or online exchanges. Although online business has empowered the Indian customer to cross limits of states and nations to get results of their decision, this expanded degree for buy and deal exchanges achieved by web-based business isn’t very much ensured by the different Indian buyer laws. The laws concerning the equivalent have to end up being stale, leaving a significant number of such client’s remediless. Non-assurance of information made accessible on the web, insufficient conveyance framework, deceiving notices, vulnerability as forward if there should arise an occurrence of debates, are a portion of the developing worries in internet business. In the above’s light mentioned, this article would in a word, glance through the focal point on rights which a purchaser has in the event of online exchanges, keeping in foundation the different Indian buyer laws accessible to be specific the Consumer Protection Act, 1986, the Information Technology Act, 2000, the Competition Act, 2000, the Indian Contract Act and so forth. I have likewise secured suggestions and measures for the expulsion of such lacunae as present in the Indian buyer laws.

Times have changed. People don’t even need to go out anymore to buy things they require. It’s all available at the tip of a finger in their smartphones or computers, such is the magic of e-commerce. It has completely revolutionized the Indian market. E-commerce refers to the practice of buying or selling of goods and services, transfer of funds etc. online, i.e. through an Internet connection. We have given the convenience of the customers the highest priority. It saves time and effort, gives us a plethora of options which would otherwise be impossible in physical markets or stores, brings everything into one platform making the process easy along with the bonus of exceptionally affordable prices and delivery to our very doorstep.

But there are concealed cons in this rosy picture which only seems to have pros. The Consumer Protection Act, which enlists the laws for protecting the rights of the consumers and to ensure that they get what they are promised and deserve, came into existence in 1986. This was way before the emergence of e-commerce in India. Hence, there are no specific laws for protecting customers who conduct transactions online as the concept has emerged only in the recent years. Not that the consumers in online purchases and transactions are unprotected by the law.

Common Problems in E-Commerce

The normal protests got identified with online business are as per the following:

  • Imperfect or wrong item conveyance;
  • Refusal to supplant wrong item conveyed;
  • Refusal or postponement in discounting of cash moved for online buy;
  • Irrational postponement in conveyance of items bought on the web;
  • Issues with respect to ensure and guarantee of items bought on the web;
  • Hazardous introduction of delicate individual data shared for online exchanges;

Such issues get hard to handle without any solid lawful cure in case of debates.

International Guidelines

Global Organizations like the Economic Cooperation and Development (OECD) has spread out worldwide rules to be followed regarding web-based business.

A portion of the significant rules are as per the following:

  • Purchasers who take an interest in online business ought to be managed straightforward and powerful customer insurance that isn’t not exactly the degree of assurance managed in different types of trade.
  • Organizations occupied with online business should pay due respect to the premiums of purchasers and act as per reasonable business, publicizing and advertising rehearses just as the overall standard of sincere trust.
  • Organizations ought not endeavor to confine a shopper’s capacity to make negative audits, contest charges, or counsel or document objections with government offices and other protest bodies.
  • Organizations ought not make any portrayal, or oversight, or take part in any training that is probably going to be beguiling, deceiving, deceitful or uncalled for. Organizations ought not distort or shroud terms and conditions that are probably going to influence a shopper’s choice with respect to an exchange.
  • Online exposures ought to be clear, precise, effectively open and prominent so purchasers have data adequate to settle on an educated choice with respect to an exchange.
  • Organizations occupied with internet business with customers should make promptly accessible data about themselves that is adequate to permit, at any rate.
  • ID of the business;
  • fast, simple and viable shopper correspondence with the business;
  • the proper and viable goal of any questions that may emerge;
  • administration of legitimate cycle in homegrown and cross outskirt debates; and
  • area of the business.
  • Organizations occupied with web-based business with customers ought to give data portraying the products or administrations offered that is adequate to empower purchasers to settle on educated choices regarding exchange.
  • Organizations occupied with online business ought to give data about the terms, conditions and expenses related to an exchange that is adequate to empower purchasers to settle on an educated choice with respect to exchange. Shoppers ought to have the option to effectively get to this data at any phase of the exchange.
  • Organizations ought to give buyers a chance to audit outline data about the great or administration, just as any conveyance and estimating data before shoppers are approached to affirm an exchange. They should empower shoppers to recognize and address blunders or to change or stop the exchange, as suitable.
  • Organizations ought to give shoppers simple to-utilize installment instruments and execute safety efforts that are similar with installment related dangers, including those subsequent from unapproved access or utilization of individual information, misrepresentation and wholesale fraud.
  • Consumers ought to be given significant admittance to reasonable, simple to-utilize, straightforward and compelling instruments to determine homegrown and cross-fringe online business questions in an opportune way and acquire review, as fitting, without bringing about pointless expense or weight.
  • Organizations ought to give change to consumers to the mischief that they endure as an outcome of products or administrations which, for instance, are deficient, harm their gadgets, don’t meet publicized quality models or where there have been conveyance issues.
  • Organizations ought to secure consumer protection by guaranteeing that their works on identifying with the assortment and utilization of buyer information are legitimate, straightforward and reasonable, empower customer cooperation and decision, and give sensible security shields.

These all around acknowledged rules give a legitimate system to pass by without specific laws in regards to internet business customer insurance.

Indian laws

In India, the interests of the consumers and their rights are protected by the Consumer Protection Act, 1986. The purpose of this act is to ensure that all customers get what they deserve or are promised. It ensures that the consumers aren’t cheated by enterprises by checking unfair trade practices, defects in goods and deficiency in services in India. Its jurisdiction extends to all services, products or suppliers in the public or private sector including banks, education, life and general insurance, health services, retailers etc.

According to Section 2(1)(d) of the Consumer Protection Act, a ‘consumer’ is any person who buys or hires any goods or services for a price. According to Section 2(1)(b), a ‘complaint’ can be filed by:-

  • A consumer;
  • The legal heir or representative of a consumer in case of the consumer’s death;
  • A group of consumers having the same concern;
  • A voluntary consumer association;
  • The Central or State governments.

According to Section 2(1)(c) of the Act, a ‘complaint’ or allegation can be filed on the following grounds:-

  • Unfair or restrictive trade practice adopted by any trader;
  • The goods bought or agreed to be bought being defective;
  • The services hired or availed or agreed to be hired or availed being defective;
  • Charging prices exceeding a fixed price for goods or services;
  • Goods being hazardous to life and safety.

Hence, the consumers can file complaints on the above grounds under the Indian Consumer Protection law.

Consumer protection in E-commerce

The Indian Consumer Protection laws, backed by the International guidelines are able to protect consumers in e-commerce even in the absence of explicit laws concerning online transactions. In this respect, the person making the purchase or transaction online would qualify as the consumer and would be able to bring a suit against any online shopping portal as the dealer under any of the above-mentioned grounds.

The court to which a consumer is supposed to apply depends on the amount of claim and the geographical position as follows:

  • Amount of claim:
  • If the amount is less than Rs. 20 Lakh – District Consumers Forum,
  •  If the amount is more than Rs. 20 Lakh & upto Rs One crore –   Consumer Disputes Redressal Commission of the concerned State;
  • If the amount is more than Rs. One crore – National Consumer Disputes Redressal Commission New Delhi.
  • The area of jurisdiction: When applying to a District Forum, the court should have local jurisdiction over either :
  • The place of residence of one of the opposite parties;
  •  The area of business of one of the opposite parties;
  • The place where the cause of action arises.

Since most shopping portals have offices in all cities, the consumer, in this case, would have to apply to the court with jurisdiction where the cause of action arose. The new Consumer Protection Bill 2015 provides for new laws related to e-commerce and hence will be of great assistance to consumers, once adopted, as they would have explicit and concrete laws to rely on for their protection of rights as a consumer along with their safety and privacy.

Precautions to be taken by consumers

Notwithstanding the laws securing customers, shoppers themselves should be cautious and take some prudent steps while making exchanges and buys on the web. A couple of models are as per the following:

Ø  Be very much educated about the seller before making an online buy;

Ø  Find out about the security strategy of the online entryway or the seller;

Ø  Never make buys from obscure online retailers;

Ø  Peruse surveys before making a buy;

Ø  Screen your ledger from where you make the online exchanges consistently. Incline toward utilizing Visas for online buys rather than charge cards.


In the new period of digitalization, web based business has reformed the Indian market. It is an extraordinary open door for the two sellers and shoppers, yet just if the exchanges are managed and observed to ensure that there are no unjustifiable works on tormenting the market which would end up being impeding. Securing buyer rights is absolutely critical as they are the foundation of any economy and everybody is a purchaser in one manner or the other. With new progressions and innovation, the laws should be modern to guarantee smooth working of business and a steady economy.

Issues like worldwide internet business not falling under the ward of nearby purchaser gatherings, guaranteed free administrations not being secured under the current customer law, and no appropriate buyer law system guaranteeing and implementing protection of touchy individual data shared online for exchanges should be handled right away. Either the proposed Bill should be passed direly or separate law for the consumer assurance of e-purchasers, as present in the UK, should be brought into reality as quickly as time permits.




3. Consumer Protection Act, 1986 OECD (2016), Consumer Protection in E-commerce: OECD Recommendation, OECD  Publishing, Paris,

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