Consumer Protection Act was updated to tackle new challenges, particularly in e-commerce
World Consumer Rights Day, celebrated every year on March 15, highlights the significance of consumer rights globally. The day was first observed in 1983, motivated by the United States President John F Kennedy’s iconic speech to US Congress on March 15, 1962, in which he defined four essential consumer rights, namely safety, information, choice, and the right to be heard. The day emphasises worldwide initiatives to safeguard consumers against unfair practices and promote awareness of their rights.
In India, the origins of consumer protection can be traced back to ancient writings like Manu Smriti and Kautilya’s Arthashastra, which highlighted the importance of ethical trading and set forth penalties for fraud and adulteration. These principles established the basis for equity in trade.
But since then, a lot has changed, both in terms of the consumer awareness as well as the market conditions. The contemporary phase of consumer protection commenced with the 1986 Consumer Protection Act (COPRA), which represented a major advancement by formalising consumer rights and establishing processes for addressing complaints.
In 2019, the Consumer Protection Act was updated to tackle new challenges, particularly in e-commerce. The new legislation established tougher rules against deceptive advertising, required online platforms to make mandatory disclosures, and included clauses for product liability. These changes have enabled consumers to pursue justice more efficiently.
“The government has launched multiple campaigns and platforms to educate consumers about their rights. The Jaago Grahak Jaago campaign remains a pivotal awareness drive, informing consumers about their rights and legal remedies. Additionally, national consumer helplines (1915) provide easy access to information and complaint resolution. The introduction of E-Daakhil, an online platform for filing consumer complaints, has further simplified the redressal process, making it accessible and efficient,” Kapil M Kant, Associate Advocate, Awasthi and Associates, a law firm based in New Delhi, tells Media India Group.
The growth of e-commerce has changed consumer habits while also bringing about new risks. Problems like data breaches, fake products, and insufficient transparency affect the online marketplace. Although regulations such as the Consumer Protection (E-commerce) Rules, 2020 seek to protect online shoppers, implementation continues to be difficult.
“With the rise of online shopping, e-commerce regulations have been strengthened to safeguard consumer interests. The Consumer Protection (E-Commerce) Rules, 2020 ensure fair trade by mandating disclosure of seller details, return policies, and grievance redressal mechanisms,” says Kant.
However, to enable Indian consumers, enhanced awareness initiatives are required at local levels. “I once bought a faulty pair of headphones online and wasn’t sure how to file a complaint. It is clear that raising awareness about consumer rights at the community level is crucial. There needs to be better mechanisms for handling complaints and stronger enforcement of laws to protect buyers. As online shopping continues to grow, the systems that protect consumers must evolve alongside technological advancements in the marketplace,” Sejal Khanna, Marketing Executive, Bharti Real Estate, a realtor in New Delhi, tells Media India Group.
“While digital platforms have simplified consumer complaint filing, many individuals still lack access to online resources. To address this gap, physical consumer forums and legal aid clinics provide assistance for filing complaints. Offline submissions at District Consumer Commissions also ensure that non-digital consumers can seek justice. However, increasing awareness at the grassroots level and establishing more local helpline centers can further strengthen consumer protection,” Kant adds.
According to Mahatma Gandhi, ‘A customer is the most vital guest on our premises.’ Maintaining this principle is essential for fostering a just and fair marketplace for everyone. As India progresses, it is crucial to guarantee that consumer rights develop in tandem with technological innovations, fostering a safer and more transparent space for consumers to prosper.