India: ecommerce law for online consumer protection imperative
09.09.2015 477 views
There is a strong need for a separate ecommerce law with a view to efficiently protect rights of web consumers in India, according to a study conducted by the Indian Institute of Management-Ahmedabad (IIM-A).
The recent study titled ‘Consumer Rights in the New Economy: Amending the Consumer Protection Act, 1986’ conducted by Professor Akhileshwar Pathak of IIM-A highlights the problems faced by consumers in ecommerce, according to indianexpress.com:
“In E-commerce, numerous problems arise due to the buyer and seller being at a distance. The buyer is not able to inspect or sample the goods or services. The buyer necessarily pays through a card. This brings in the problem of fraudulence in card payment.”
The study has reviewed the proposed amendments in the Consumer Protection Act, 1986, proposed by the union ministry of consumer affairs.
In July 2015, The Union Cabinet approved the new bill as ‘Consumer Protection Bill, 2015’. The new bill aims to replace the 29-year-old law and proposes to set up a Consumer Protection Authority which will also have the power to initiate class suit against defaulting companies.
The new bill came against the backdrop of emergence of complex products and services in the era of growing ecommerce business in India that has rendered consumers vulnerable to new forms of unfair trade and unethical business practices, the same source reports.
Source: The Paypers