The Consumer Protection
Act, 1986, which has been amended recently to make it more effective
and consumer friendly, is proposed to be amended further to deal
with the challenges posed by e-commerce transactions that are
predominantly consumer transactions.
The consumer courts
are presented with a unique opportunity to expand the scope of
consumer protection laws through expansive interpretation of the
definitions of restrictive trade practices and unfair trade practices
contained in the Act. It is in this context that the Act is proposed
to be amended to empower the consumer to deal with sellers who
may not reside in India but who have sold goods or provided services
to buyers in India. How their orders will be implemented is a
different question, but this is of paramount importance to consumers
in India. If this extra territorial power is not conferred, consumers
in India will be put to a great disadvantage.
Consumer spending
is one of the reasons for economic growth of the Western economies.
If India has to compete globally its economic policies must encourage
consumer spending to generate employment and circulation of money.
This will be possible only when consumer reposes confidence in
e-commerce.
To encourage consumer
spending for maximizing employment, the Consumer Protection Act
requires to be reviewed to address the problems posed by doing
business through internet.
Digital revolution,
which has given birth to electronic commerce, has opened up new
opportunities for trade and business to expand their reach. Internet
which has sounded the death knell to the distance and has made
instant communication a reality, promises immense scope for expansion
of business opportunities hitherto unknown in the history of mankind.
With the breakdown of the borders coupled with the ability of
the big corporations to move goods from far away ware houses to
distant consumers in many instances across the borders with ease
poses challenge to consumer protection laws. E-commerce, broadly
defined, is concerned with the electronic marketplace. It refers
to the emerging market economy where producers, intermediaries
and consumers interact electronically or digitally in some way.
The electronic marketplace presents a unique opportunity to improve
the way businesses disseminate product information through advertisements,
charge consumers and increase the sale of their products.
