NEW DELHI: E-commerce portals will have to set up a robust consumer redressal mechanism as new rules under the Consumer Protection Act, 2019, came to force on Monday. According to Union Consumer Affairs Minister Ram Vilas Paswan, the new Act has introduced consumer protection councils, a central consumer protection authority, and a simplified dispute resolution process.
Rules for prevention of unfair trade practices by e-commerce platforms will also be covered under this Act and provisions relating to both e-commerce and direct selling would be notified as early as this week. “Every e-commerce entity is required to provide information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, payment methods, security of payment methods, charge-back options, etc. including country of origin which are necessary for enabling the consumer to make an informed decision at the pre-purchase stage on its platform,” Paswan said.
The Consumer Protection (E-commerce) Rules, 2020, will be notified within next few days, the minister added. The Act seeks to provide enhanced protection of consumers’ interests and timely settlement of their grievances. Paswan said that the e-commerce platforms have to acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within one month from the date of receipt under this Act. The rules also prohibit the e-commerce companies from “manipulating the price” of the goods or services to gain unreasonable profit via unjustified prices.
Under the new Act, a consumer can initiate a complaint from where he resides. Under the earlier system, complaints could be initiated only in the place where the transaction took place. The rules also lay down guidelines for inventory-based e-commerce firms, which are largely similar to what applies to sellers on marketplaces. Inventory e-commerce entities vouching for the authenticity of goods or services shall bear liability for such goods or services.