On beginning to dwell into a discussion regarding
technological advancements in consumer rights, it is pertinent to understand
the basics of consumer rights. When we refer to the word “consumer”, in a
layman’s language, we simply understand it to be a person who is at the
receiving end of consumption of goods or services. Any person who buys a
certain thing for purposes of resale, is not a consumer because he is
furthering such a purchase with a commercial intent. When we look at consumers
from the perspective of businesses and service providers, the consumers seem to
be the primary purpose behind the establishment of any enterprise. One creates
a product or service majorly with a view to provide it further to a consuming
resource.
Now that we have understood the importance of
consumers from a layman’s perspective, it is essential to open the doors
towards legal understanding of the position of consumers. The Ides of March (15th
of March) every year is observed as National Consumers’ Day in India. This day
has a historic importance as it was on this day in 1962, that the Bill for
Consumer Rights was moved in the US Congress. In the year 1985, the United
Nations laid down and adopted certain guidelines which would make sure that the
consumers were protected and that the distribution of goods and services was
done in a regulated manner.
In India, the legal framework for consumer
protection was adopted in the form of Consumer Protection Act in 1956. This was
one law which was recognised as the ‘poor man’s legislation’. This brought out
a scenario when the concept of “Buyer Beware” became a mere idea of caution and
not principle. Prior to the enactment of the Consumer Protection Act, it was
the Sale of Goods Act which used to govern the rights of consumers and protect
them against exploitation. However, then the terms ‘buyer’ and ‘seller’ were taken
as reference.
In terms of E-Commerce, the Consumer Protection (E-
Commerce) Rules, 2020 ("Act") have been notified by The Ministry of
Consumer Affairs, Food and Public Distribution ("Ministry") on July
23, 2020, under the Consumer Protection Act, 2019 ("Act"), with an
intent to prevent unfair trade practices in e-commerce and to protect the
interest of the consumers and to ensure that there is transparency in the
e-commerce platforms and also to further strengthen the regulations that govern
the same. With the development of
e-commerce and technology, several electronic platforms are made available to
the consumers so as to help them in filing a complaint. A Nodal Officer is
appointed for each e-commerce platform in order to check that the platform
abides by the rules notified by the Government.
The objective of laws concerning consumer
protection is not merely to protect and preserve the rights; they also aim
towards providing a market with fair trade practices. This will also help
several honest businesses to grow and prevent fraudulent businesses from entering
or staying in the market. This is even more important today than ever because
of the advent of technologies and convenient means of establishing businesses. With
an extensive platform for establishing businesses, there are even more chances
of consumers getting exploited. The impact of the new technological
advancements and the massive convergence of e-commerce transactions, have
caught the attention of individual consumers, business enterprises, governments
and international organizations not as only facilitating the growth of business
endeavour but also posing a variety of challenges and confronts to various
segments of social and individual interests like data protection, consumer
protection, privacy violations etc.
The adequate and efficient regulatory mechanisms
and legal concepts to attend to the need of consumer protection in e-commerce
will give protection to globally recognized consumer protection mandates in
electronically equipped commercial transaction. According to the Consumer
Protection Act, every consumer is entitled to have the following rights:
1) Right to Safety
2) Right to Information
3) Right to Choose
4) Right to be Heard
5) Right to Seek Redressal and
6) Right to Consumer Education
Although Consumer Law is not an unknown area to us,
it was necessary to pick up this topic for an understanding because this is an
area where Consumerism meets Technology. When we focus on the threats towards
the rights of the consumers in the cyberspace, it is essential to have an
inclusion of the Information Technology Act as well. The Consumer Protection
Act takes care of the procedures to preserve the rights of the consumers, but
the massive control in order to prevent an abusive environment lies with the
Information Technology Act when it comes to E-Commerce.
We already have the Information Technology Act in
place so as to legally bind the cyberspace. However, the problem is that there
is no specific provision in the Act which specifically focuses upon the
protection of rights of the consumers. The IT Act is limited and focused on
encouraging the growth of e-commerce nevertheless, it fails to pursue and
protect the basic preconditions for such growth that is building trader and
consumer confidence. Consumers require security in
cyberspace in order to prevent being defrauded with duplicate products,
transactions and non-responding helplines. Major complaints are made on the
Government -assigned toll free number with regards to lack of response from the
seller after a payment has been made. Hence, it is necessary to find and
establish a link between Consumer Protection Act and the Information Technology
Act to give a legal framework to the already existing remedies regarding
protection of rights of the consumers.