Got defective product from e-retailers? Now, you will not be at their mercy

This development is a boon for those who majorly depend on online purchases, but have suffered setbacks after getting defective products and felt helpless when their grievances were not solved and they ended up losing their money. Now, such incidents will be checked as the Lok Sabha has passed the Consumer Protection Bill, 2018, replacing the earlier Act passed in 2016. The bill intends to regulate and hold e-commerce companies responsible for fraudulent sales and defective products sold on their platform.

The bill after being passed in Rajya Sabha will replace the Consumer Protection Act, 1986 and all ecommerce companies will fall under its ambit. Under the new rules, drafted by the consumer affairs department, etailers will have to disclose their business details and seller agreement, besides disclosing how they use consumer data.

The Bill enforces consumer rights and provides a mechanism for redressal of complaints regarding defect in goods and deficiency in services. Moving the Bill for its passage, Union Minister for Consumer Affairs Ramvilas Paswan on Thursday said in the Lok Sabha that the Bill was non-controversial and was in the interest of the consumers.

According to the Bill, Consumer Disputes Redressal Commissions will be set up at the district, state and national levels for adjudicating consumer complaints and appeals from the district and state commissions will be heard at the next level and from the national Commission by the Supreme Court.

The Bill stated that if a consumer suffers an injury from a defect in a good or a deficiency in service, s/he may file a claim of product liability against the manufacturer, the seller, or the service provider. It also defined contracts as "unfair" if they significantly affect the rights of consumers. 

Further, the bill also defines unfair and restrictive trade practices and establishes Consumer Protection Councils at the district, state and national levels to render advise on consumer protection. 

In a similar development to protect consumer interest, Commerce and Industry Minister Suresh Prabhu today informed the House about new draft e-commerce policy to focus on transparency in online business, saying it would focus on several areas including promotion of transparency in pricing and discounts, and protection of interests of both retailers as well as consumers.

Prabhu said the Department of Industrial Policy and Promotion (DIPP) is working on the new draft policy and it will be put in public domain in the next 2-3 weeks for stakeholders' views. "The key component of the policy is to increase the ease of doing business in e-commerce. It should benefit both retailers and consumers. There should be a complete transparency in the e-commerce businesses in terms of pricing and discounts," the minister told PTI.

Prabhu reportedly said it would also include provisions "for all wrongdoers" as there should be some sort of regulatory framework for consumer protection, adding "We are not saying whether it (discounts by online retailers) should be given or not but there should be transparency."

He said the new draft would be finalised taking into account the suggestions made by the earlier draft prepared by the Department of Commerce.

Notably, the Confederation of All India Traders (CAIT) has time and again raised concerns over heavy discounts being provided by certain online retailers.