Surge in Consumer Complaints Against e-commerce companies grew by 42% in 2018

Very recently the data submitted by the Ministry of Consumer Affairs, Food and Public Distribution in parliament of India suggests surge of complaints against e-commerce companies by 42% amounting to around 78000 complaints. Last year these number of complaints were around 55000.

According to the National Consumer Helpline (NCH), the total number of complaints submitted by consumers have shoot up by around 1400%. These complaints majorly consist of delivery of defective products, delay in delivery of products, non-delivery of consignments, missing product accessories, refund or replacement issues etc.

Although government of India has made provisions to resolve these issues wherein consumer can file complaint with appropriate authority or by submitting complaint with National Consumer Forum. Consumer can also submit their complaints on web portal. National Consumer Forum has ventured with around 400 companies including 66 e-commerce companies in order to transfer these complaints to the concerned companies however currently there is no data showcasing the number of issues that has been resolved.

During the current monsoon session of Lok Sabha, Government of India has passed special bill called Consumer Protect Bill 2018 which empowers Central Consumer Protection authority to prevent the unfair trade practices in e-commerce industry.

The Government of India is also attempting to frame national e-commerce policy that will lay down policy framework to address issues such as physical and digital infrastructure, regulator regime, taxation policy, data flows, server localization, technology flows, FDI, intellectual property rights protection etc. The policy will also lay down framework addressing the liability of market places.

Currently the vast majority of e-commerce players are protected under Section 79 of the Information Technology Act 2008, as these players are intermediaries (Commercial centers). There is a requirement for better comprehension of the obligation, responsibility and liability of platforms, marketplaces and aggregators. There are different instances of trademark infringement, fake products against other e-commerce players.

Special Thanks to : Medianama

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