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Vandana
Vandana

CONSUMER PROTECTION

Complaints against e-commerce companies scaling up

ECOMMERCE [File] Representative image

E-commerce complaints have more than doubled in 2017. In fact, the number of such complaints have been rapidly rising since 2014. It stood at 13,812 for May-March 2014, went up to 23,955 for 2015-16 and climbed further to 50,767 for 2016-17. These complaints have been received in the national consumer helpline.

Minister for Consumer Affairs, Food and Public Distribution C.R. Chaudhry admitted, in the Lok Sabha, that there has indeed been a rise in the number of e-commerce complaints. However, he said that there is no plan to have a regulator for grievances against e-commerce companies.

"The National Consumer Helpline has partnered with more than 340 companies including 55 commerce companies under its convergence programme. The complaints received are transferred through the system software to these companies for redressal," he said.

It is expected that the new consumer protection bill will come up with regulations for the e-commerce sector. The bill will replace a 29-year-old law and proposes to set up a regulatory authority which will have powers to recall products and initiate class suit against defaulting companies, including e-tailers.

The key features of the new bill include establishment of an executive agency 'Central Consumer Protection Authority' (CCPA) which will protect and enforce the rights of consumers. The authority will intervene when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products.

That apart, the bill has provisions for "product liability," if product/services causes personal injury, death or property damage, in that case action will be taken against defaulting manufacturers or service providers.

The bill is expected to be passed in the current session.

As of now, consumers can file complaints against e-commerce entities in respective consumer forums according to the provisions of the Consumer Protection Act, or approach the National Consumer Helpline or Online Consumer Mediation Centre at National Law School India University.

In the absence of a regulator, social media has become an important tool for people to express their grievances; some of them even get help after posting on Facebook and Twitter. E-commerce complaints especially shoot up during sale seasons, when people make a beeline for offers and quality takes a backseat.

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