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    Law of E-Commerce Unit 5

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    Dhruvo Das
    The document discusses consumer protection issues in e-commerce, including defining consumers and their rights. It covers regulatory frameworks like the OECD Guidelines on Consumer Protection and EU Distance Selling Directives. Two real-life cases are presented involving complaints against online retailers. Applicable laws in India like the Consumer Protection Act, Contract Act, and Sale of Goods Act are outlined. Key issues around data privacy, redressal mechanisms, and liability of e-commerce platforms are also summarized.

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    Law of E-Commerce Unit 5

    Uploaded by

    Dhruvo Das
    143 views24 pages
    The document discusses consumer protection issues in e-commerce, including defining consumers and their rights. It covers regulatory frameworks like the OECD Guidelines on Consumer Protection and EU Distance Selling Directives. Two real-life cases are presented involving complaints against online retailers. Applicable laws in India like the Consumer Protection Act, Contract Act, and Sale of Goods Act are outlined. Key issues around data privacy, redressal mechanisms, and liability of e-commerce platforms are also summarized.

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    The document discusses consumer protection issues in e-commerce, including defining consumers and their rights. It covers regulatory frameworks like the OECD Guidelines on Consumer Protection and EU Distance Selling Directives. Two real-life cases are presented involving complaints against online retailers. Applicable laws in India like the Consumer Protection Act, Contract Act, and Sale of Goods Act are outlined. Key issues around data privacy, redressal mechanisms, and liability of e-commerce platforms are also summarized.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    143 views24 pages

    Law of E-Commerce Unit 5

    Uploaded by

    Dhruvo Das
    The document discusses consumer protection issues in e-commerce, including defining consumers and their rights. It covers regulatory frameworks like the OECD Guidelines on Consumer Protection and EU Distance Selling Directives. Two real-life cases are presented involving complaints against online retailers. Applicable laws in India like the Consumer Protection Act, Contract Act, and Sale of Goods Act are outlined. Key issues around data privacy, redressal mechanisms, and liability of e-commerce platforms are also summarized.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 24

    Consumer Protection

    in E-Commerce
    Unit 5
    Consumer Protection Issues
    Definition of a consumer
    Rights of the Consumer
    Legal Framework providing for these rights and protecting these rights
    Issues in protecting these rights:
    1. Redressal Mechanism and dispute resolution- COPA, 2019, Consumer
    Protection Rules, 2021
    2. Regulatory Mechanism for ensuring safety and protection of consumers
    3. Data Protection and Privacy
    4. Jurisdictional Issues
    International Regulatory Frameworks

    OECD Guidelines on Consumer Protection, 1999

    Distance Selling Directives 1997- EU


    Application in Real Life Situations
    A goes to netmeds and orders medicines for treating cough and cold. He used an
    old prescription for placing the order. The orders were placed but the medicines
    were about to expire in two days. He raises a complaint with netmeds but did not
    receive any response. However, he consumes the medicines and later on faced
    complications due to the interaction of the medicines with his medicine for blood
    pressure.
    He wants to file a case against netmeds.
    Is he a consumer?
    Which are the consumer rights violated ?
    Can netmeds claim exemption from liability?
    Application in Real Life Situations
    B, a pure vegetarian, ordered food through Zomato. He ordered a veg sandwich
    and spring rolls. When started eating, he realized that it had egg in it and the
    drinks ordered were not sealed cans. When he raised a complaint, the website
    claimed that as per Clause XIII 1. F of the terms of use, they are not liable and ask
    B to contact the Restaurants.

    How would B get redressal?

    Is any of B’s rights violated?

    Is there any remedy available?


    Applicable Laws
    Consumer Protection Act, 2019- who is a consumer, rights of the consumer

    Indian Contract Act, 1872- contractual liability, privity of contract

    Sale of Goods Act, 1930- Standards to be met while selling goods


    Definition of E-Consumer- Sec 2 (7) Consumer Protection Act, 2019

    Purchaser and users of goods

    Hire and avail services

    Does the definition include

    1. OLA cabs
    2. Amazon Free deliveries
    Dispute Redressal Mechanism
    Should the contract decide the mechanism

    Cause of Actions

    ● Defect in product and deficiency in services


    ● Unfair trade Practices
    ● Product Liability
    ● False Advertisements
    ● Incomplete information
    Consumer Protection (E-Commerce) Rules 2020
    Definition includes E-commerce Marketplaces within the scope of application
    Rule 5 E-commerce entities are :
    Required to provide information to consumers, 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 and country of origin.

    Acknowledge the receipt of any consumer complaint within 48 hours and redress the complaint within one month
    from the date of receipt. They will also have to appoint a grievance officer for consumer grievance redressal.

    Sellers cannot refuse to take back goods or withdraw services or refuse refunds,if such goods or services are
    defective, deficient, delivered late, or if they do not meet the description on the platform.

    The rules also prohibit the e-commerce companies from manipulating the price of the goods or services to gain
    unreasonable profit through unjustified prices.
    Consumer Protection Dispute Redressal commission Rules, 2020

    It came into force on 20th July 2020, the amount of fee payable for filing the complaint in the
    District Commission up to Rs 5 lakhs has been made Nil according to Rule 7.

    The credit of the amount due to unidentifiable consumers will go to the Consumer Welfare
    Fund(CWF).
    Concerns of data protection and Privacy

    ❏ Opt-In and Opt out approach- User consent

    Personal Data Protection Bill, 2019 and Right to Privacy under Art
    21
    ❏ Ownership of data- data provider as the owner
    ❏ Classification of data- Sensitive, Critical and General
    ❏ Sensitive and Critical- Data Localization
    Indian Contract Act, 1870

    Performance of the Contract- When to perform? What amounts to performance?

    Dispute redressal clause- principles of standard form contract apply, law and
    mechanism
    Sale of Goods Act, 1930
    Essentials-

    ● Bilateral
    ● Goods
    ● Money Consideration
    ● Transfer of General Property
    ● Satisfy the essential elements of a valid contract

    Conditions and Warranty - Difference between the two


    Consumer protection Cases
    Deficiency in services availed online

    Anupama Purohit vs Makemy trip.com

    Spice Jet vs Ranju Aery, 2017

    False Advertisements

    People vs Lipsitz

    Minnesota vs Granite Gate Resorts


    Cases
    Horlicks Ltd. v. Zydus Wellness Products Ltd., 2020 SCC OnLine Del 873
    The High Court passed an interim order restraining Zydus from telecasting its advertisement comparing Complan to
    Horlicks on the grounds that the same was misleading and disparaging. The Court relied on various judgments on
    misleading advertisements, disparagement and law governing publication of advertisements on television

    Dabur (India) Ltd. v. Colortek (Meghalaya) (P) Ltd., 2010 SCC OnLine Del 391
    The Delhi High Court culled out the principles governing disparagement in the advertisements and held:
    On the basis of the law laid down by the Supreme Court, the guiding principles for us should be the following:
    (i) An advertisement is commercial speech and is protected by Article 19(1)(a) of the Constitution.
    (ii) An advertisement must not be false, misleading, unfair or deceptive.
    (iii) Of course, there would be some grey areas but these need not necessarily be taken as serious representations of fact
    but only as glorifying one’s product.
    To this extent, in our opinion, the protection of Article 19(1)(a) of the Constitution is available. However, if an advertisement
    extends beyond the grey areas and becomes a false, misleading, unfair or deceptive advertisement, it would certainly not
    have the benefit of any protection.
    OECD Guidelines, 1999

    ⚫ Set of recommendations to governments, businesses,


    consumers and their representatives

    ⚫ Applicable only to B2C E-Commerce


    OECD General Principles
    1. Transparent and effective protection
    2. Fair Business, Advertising and marketing practices
    3. Online Disclosures- business, goods and transactions
    4. Confirmation process- when will the contract be concluded?
    5. Payment Methods
    6. Dispute Resolution
    7. Privacy and data protection
    8. Education and consumer awareness
    E-Commerce Directive on Distance Selling 1997

    Distance selling

    Sale and purchase of goods/services where a consumer and


    a supplier running an organised distance-selling scheme
    do not meet face to face at any stage until after the
    contract has been concluded.
    Rights of a consumer in distance selling contracts

    ⚫ Provision of comprehensive information before the purchase-


    Art.4

    ⚫ Confirmation of most of that information in a durable


    medium (such as written confirmation) and some additional
    information which becomes relevant after the sale- Art. 5

    ⚫ Right of withdrawal- within 7 working days- Art.6


    Rights of a consumer in distance selling contracts
    ⚫ Where the consumer has cancelled the contract, the right to a refund within 30 days of
    cancellation;

    ⚫ Delivery of the goods or performance of the service within 30 days of the day after the
    consumer placed his/her order;

    ⚫ Art. 10 – Data Privacy

    ⚫ Non validity of any waiver of the rights and obligations provided for under the Directive,
    whether instigated by the consumer or the supplier.
    Exempted Contracts
    ⚫ Contracts for Financial Services

    ⚫ Contracts concluded through online auctions

    ⚫ Contracts for perishable goods/custom made goods- no right to


    withdrawal

    ⚫ Contract for performance on a specific date- no right to withdrawal


    Drawbacks

    ⚫ Non-uniform legal sanctions

    ⚫ Non-uniform cooling off period

    ⚫ Online auctions not covered


    Gentry vs E-Bay 2002

    ⚫ liability of eBay
    ⚫ court held

    ⚫ “eBay was not responsible for the goods that are listed in
    the website since they act only as the facilitator and not
    as the seller, and that the auction site did not guarantee
    that the goods listed were of genuine, which is the role of
    the actual seller.”
    E-Commerce Directives on Consumer Rights, 2011
    Art. 3- Scope and Application

    Art. 6 Information to be disclosed to the consumer

    Art. 9 Right to withdrawal

    Art 18- Delivery within 30 days

    Art 19- Consumer not to charged excessive fee

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