case study related to any consumer rights

Top 10 Case Study on Consumer Rights

We know consumer laws and courts exist, but only by reading through some case law can you understand how you as a consumer can exercise your rights!

On an everyday basis, we purchase products and services. From our basic necessities like food and clothing to services like banking and education, we are dependent on companies and organisations to live comfortably in the present day, and we give them our hard-earned money in return. But sometimes, companies might fail to provide quality services or products. Many know there exist consumer courts and laws that protect consumers from consumer exploitation . But have you ever wondered who goes to these courts and what types of cases are filed? You would be surprised to know how basic these cases can be. So, here are 10 interesting case study on consumer rights curated for you.

Table of Contents

Top 10 Case Studies on Consumer Rights

1. banks can’t always escape using ‘technical difficulties’.

We have come to rely on banks so much. A recent case study on consumer rights highlighted the need for stronger regulations. More than ever, most of our transactions are digital and heavily reliant on banks for these. Have you ever had your transaction fail due to the server being down or other errors?

Dipika Pallikal, a squash champion and Arjuna awardee found herself in an awkward situation when she used her Axis Bank Debit Card in a hotel at Netherlands’ Rotterdam failed. She had had 10 times the bill amount in her account at that time. Due to this, she faced a loss of reputation and humiliation. The bank said the incident was a case of ‘ Force Majeure’ (an act of god/ something beyond control)

Apart from that, the bank had also returned a cheque of ₹1 lakh issued to her by the government of India and blamed it on a technical error.

Dipika moved the consumer court in Chennai against Axis Bank

Court Decision

The court found that there was a deficiency of service on the part of Axis Bank and directed the bank to pay a compensation of ₹5 lakh and ₹5000 as expenses.

Key Takeaway

Banks are like any other service provider. We trust them with our money and they must perform the services we were promised. They cannot hide behind ‘technical difficulties’ or ‘ force majeure ’ and let customers suffer for it.

2. You Don’t Have to Be a Celebrity to Win a Consumer Case

A humble tea vendor, Rajesh Sakre, is an example of this. He had ₹20,000 in his State Bank of India account and had withdrawn ₹10,800. On his next visit to the ATM, however, he realized all his money was gone. When he asked the bank authorities they blamed it on him. 

So, he went to the District Consumer Disputes Redressal Forum with his grievance. He couldn’t afford a lawyer and he argued the case himself. This case study on consumer awareness presents insights into how consumers are becoming more vigilant.

The forum ruled in his favour and ordered the State Bank of India to return the ₹9,200 with 6% interest, pay ₹10,000 as compensation for mental anguish caused by the issue, and ₹2,000 for legal expenses.

It doesn’t matter who you are, as long as you have a valid case you can approach the Consumer cases Forum. And even big companies and government entities like the State Bank of India can be made to answer for their mistakes.

3. Not All Free Items Are Welcome

Imagine you bought a bottle of Pepsi and found a packet of gutka floating in it! It happened to Rajesh Rajan from Ahmedabad when he bought Pepsi from a local store. He sent a legal notice to the company immediately and approached a Consumer cases Dispute Redressal Forum. Every case study on consumer complaint tells a unique story of a consumer’s journey towards justice.

Moreover, he claimed that there was a deficiency in service that could have caused a health hazard to him. He demanded compensation of ₹5 lakh for the same.

The consumer forum passed an order in favour of Rajesh Rajan and directed the company to pay a total of ₹4008 (₹4000 for compensation and ₹8 for the Pepsi he purchased).

Rajesh moved the State Consumer Dispute Redressal Commission, asking for higher compensation as ₹4008 was too low and that he had spent ₹500 on sample testing itself. The State Commission passed an order asking the company to pay ₹20,000 as compensation and ₹2000 towards costs as it found Rajesh’s argument reasonable.

Free items are not all welcome! It is a deficiency in service on the part of the provider if you find anything in your food (packaged or otherwise) that isn’t supposed to be there. The Consumer Cases Forums are a good place to take them.

4. Paying More Than the MRP? You Shouldn’t.

It has become common to charge more than the maximum retail price (MRP) for packaged goods. Especially in places like theatres, food courts, railway stations, etc we see this happen a lot and mostly ignore it.Among the prominent consumer cases last year, the MRP case stood out for its complexity

Mr Kondaiah from Andhra Pradesh, on the other hand, didn’t ignore it when he noticed that Sarvi Food Court charged him ₹40 for a water bottle where the MRP was ₹20. He filed a case against them in the District Consumer cases Disputes Redressal Forum for ‘unfair trade practice’. He supported his claim by producing the bill. The MRP case study on consumer rights brought to light some gaps in the existing regulations.

The court decided in favour of Mr Kondaiah and said that a practice is not justified just because it is widely common. Mr Kondaiah was awarded a compensation of ₹20,000, ₹20 (the extra money charged) and ₹5,000 in costs. 

No authority has the power to charge above the MRP for any packaged goods. It doesn’t matter where it is sold, you are not required to pay a rupee above the MRP.

5. No MRP at All on the Product?

Baglekar Akash Kumar, a 19-year-old got a book and ₹12,500 because of the book. How? He purchased the book online and when it was delivered, he noticed that there was no MRP mentioned in it. He browsed the internet and saw that the book was sold at different prices in different places.

So, he went to the consumer cases forum and filed a case against Penguin Books India Pvt. Ltd and the paper company.

The court held that not publishing MRP on the product without a valid reason is ‘unfair trade practice’. MRP exists to ensure that a consumer is not overcharged for the product. So, it is mandatory for companies to print MRP.

The publishers were asked to print the retail price on the book and Akash was awarded ₹10,000 as compensation and ₹2,500 as costs.

It is required under law for companies to put MRP on every product. If you see a product without MRP, then it is a violation of Consumer cases Protection Laws and you can take them to court. 

6. Medical Services Fall Within the Scope of the CPA

Do medical services fall under CPA? When there was a little confusion in this regard, the Indian Medical Association (IMA) decided to get this question resolved once and for all. The CPA case study on consumer rights brought to light some gaps in the existing regulations. The Medical Services case study on consumer complaint became a landmark case in consumer rights advocacy.

IMA approached the Supreme Court, asking them to declare that medical services are out of the scope of the CPA. They gave the following arguments to support their claim:

• Medical professionals are governed by their own code of ethics made by the Medical Council of India. 
• In the medical profession, it is hard to guarantee the end result of treatments. Many external factors which are out of the control of the professional can impact the outcome. So, allowing consumer claims will cause people to file a case whenever a treatment didn’t work out.
• There are no medical science experts in the consumer complaints online.
• Medical service provided by government hospitals will not fall under the Act especially when the service is provided for free. 

These were decent points. After consideration, the court settled the claims in the following manner.

Medical services provided by any professional (private or government) will be covered by CPA. This means  people can file a case in a Consumer Court if the service provided is not in confirmation with the Act.

• Doctors and hospitals who treat patients for free cannot be sued by a person who availed their services for free. 
• In a government hospital, where services are provided free of charge – the Consumer Protection Act India would not apply.

Apart from these two exceptions, the Act will apply when a person gets treated in government hospitals for free, when a poor person gets treated for free, and when insurance money is used for treatment.

7. Tired of the False Claims Made by Skin and Hair Care Products Yet?

Maybe you are not tired yet or you are too tired to question. However, a 67-year-old man from Kerala’s remotest areas was tired of these consistent lies and how companies got away with them.

In 2015, K Chaathu complained against Indulekha (beauty product manufacturers) and Mammootty (an actor who was the brand ambassador of the company) for putting up misleading ads. The tagline of the soap was ‘soundaryam ningale thedi varum’ which meant ‘beauty will come in search of you. The ads also claimed that people using the soap will become ‘fair’ and ‘beautiful’ but the 67-year-old didn’t become fair or beautiful.

Funny, right?

Compensation Paid

Indulekha paid him ₹30,000 in an out of the court settlement while the initial claim of Chaathu was ₹50,000. When he was asked about this, he said that this case was never about the money but about how these companies put up advertisements every day with false claims. And it is not okay to let these people get away with it.

Key Takeaways

Advertisements are made to sell the products, so exaggeration of results is too common. But this doesn’t make it okay to make false claims just for the sake of selling the products. Making false claims in violation of the CTA.

8. Homebuyers Are Consumers

Imagine you decide to buy a house (a dream come true for many). You do a lot of research, pool your hard-earned money, and pay a real estate developer to build the house for you. They promise to deliver within 42 months but 4 years later they haven’t even started construction. 

This is what happened to two people and they decided to move the National Consumer Disputes Redressal Commission (NCDRC) for it. The Homebuyers case study on consumer rights was instrumental in changing local regulations.

NCDRC decided in favour of the homebuyers and asked the real estate developer to refund the money with a simple interest of 9% per annum. They were also awarded a compensation of ₹50,000 each.

The real estate developer challenged this in the Supreme Court, saying that the issue is covered under another Act (Real Estate (Regulation and Development) Act) and therefore cannot be taken in a consumer court. But the Supreme Court denied their argument saying that as long as the other Act explicitly stops people from getting remedy under other laws, they will be allowed to do so.

Our laws are in such a way that even though there are other remedies available, in most cases where you are a buyer of a product or a service, you will have protection under the Consumer Protection Act. 

9. Insurance Claims Cannot be Rejected on Mere Technicalities

We pay the premium and get insurance to protect us from losses we can’t foresee. Sadly, many people have had bad experiences with the insurance company. Om Prakash, for example, had his truck stolen and claimed insurance for the same. The truck was stolen on 23.03.2010, the FIR filed on 24.03.2010, and the insurance claim was filed on 31.03.2010. 

The insurance investigator was sent and he confirmed that the claim was genuine. The claim approved for the amount of ₹7,85,000/-. But the amount was never given to Om Prakash. With the rise in consumer court cases , companies are now more cautious about their policies and practices. When he sent the insurance company a legal notice for the same, they replied saying that there was a breach of terms and conditions: 

“immediate information to the Insurer about the loss/theft of the vehicle”

Om Prakash was late to apply for insurance because he was held up with the police to try and recover his vehicle.

While the consumer courts didn’t allow his case, the Supreme Court allowed his appeal and held in favour of him. It was ruled that insurance companies cannot escape from paying the claimants on technical grounds. Especially when the claimant has valid reasons for it.

The Court directed the Respondent company to pay a sum of ₹8,35,000/- to the Appellant along with interest @ 8% per annum. He was also awarded ₹50,000 as compensation.

Over the years, many judgements have been made to ensure that insurance companies are accountable and do not escape from paying valid claims. If you experience a similar situation with your insurance provided, you can approach the consumer court.  

10. iPhone 5S Gold for ₹68 + ₹10,000

Let’s close the list with a fun one! How would it be to get an iPhone at just ₹68? In 2014, Nikhil Bansal (a student) saw this unbelievable offer on Snapdeal (a discount of ₹46,651) and ordered it immediately as any sane person would. He received an order confirmation but later he was told that the order was cancelled. They claimed that the offer itself was a technical glitch. “The iPhone case study on consumer complaint showcased the challenges consumers face even in today’s digital age.

When he approached the e commerce consumer complaints india Forum, he claimed that these kind of offers are misleading people and it was the duty of Snapdeal to honour the order. The forum ruled in his favour and asked Snapdeal to deliver him the iPhone for ₹68 and asked to pay a compensation of ₹2,000.

When Snapdeal appealed this order, the compensation was raised to ₹10,000! 

Key Takeaway – Case Study on Consumer Rights

Ecommerce stores are just as answerable as any other shop owner under the Consumer Protection Act. So if you face any issues like this with them, consider taking it to the consumer court. Through each case study on consumer rights, we can learn more about our rights and responsibilities

Consumer forums exist to protect consumers from consumer exploitation and ensure that we are not cheated by the companies we pay for getting products or services. Knowing your rights is the first step towards becoming a conscious consumer. 

Don’t hesitate to approach the consumer court if you have a valid claim of consumer exploitation . Even if it is for an ₹8-product like Pepsi, a valid claim should be taken to the forum.

Also, Read:

• Consumer Complaints in Airline Industry in India
• Consumer Reports Skin Care Products
• How Long Will Take to Resolve a Case in Consumer Court ?

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Looking Ahead: Consumer

The Court is likely to continue to evaluate consumers’ right to have their day in court in the coming year. In the decade since the Supreme Court decided AT&T Mobility v. Concepcion , 563 U.S. 333 (2011) , clauses requiring mandatory pre-dispute arbitration and prohibiting class actions have proliferated. In Concepcion , the Court held that the Federal Arbitration Act (FAA) preempted a California law under which class-action bans in arbitration clauses were deemed to violate state public policy and, thus, were unenforceable . Id. at 343. As of 2018, at least half of U.S. households and 25 million employees were subject to mandatory arbitration clauses prohibiting class actions.

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The importance of arbitration clauses in civil litigation, thus, continues undiminished, and two cert petitions pending before the Court provide further opportunities for the Court to clarify the reach of arbitration. Both cases, Viking River Cruises, Inc. v. Moriana (No. 20-1573) , and HRB Tax Group v. Snarr (No. 20-1570) , challenge judicial decisions holding that California laws authorizing plaintiffs to proceed in representative capacities are not preempted by the FAA.

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In Moriana , a plaintiff whose employment contract required her to waive her right to bring a private attorney general action sued her employer under California’s Private Attorneys General Act (PAGA) for allegedly violating California labor law. Moriana v. Viking River Cruises, Inc ., No. B297327, 2020 WL 5584508, at *1 (Cal. Ct. App. Sept. 18, 2020) . Under PAGA, a plaintiff can seek damages against her employer on behalf of herself and other employees if the State declines to intervene in the case. Petition for Writ of Certiorari, at 8, Moriana (20-1573). Those employees receive a quarter of any monetary recovery, with the remaining three-quarters going to the State. Id. at 9. The California Supreme Court has held that Concepcion does not require arbitration of a PAGA claim because such claims represent a dispute between an employer and the State, whereas the aim of the FAA is to ensure efficient resolution of disputes over a litigant’s private rights. Iskanian v. CLS Transportation Los Angeles, LLC , 59 Cal. 4th 348, 384 (Cal. 2014) . (The Ninth Circuit has also rejected a challenge to Iskanian , though on the grounds that PAGA actions do not raise the same efficiency concerns as class actions.) The Viking Cruises cert. petition argues that Iskanian is nearly identical to Concepcion , in that both involved the State declining to enforce an arbitration agreement pursuant to an important public interest and asks the Supreme Court to overrule Iskanian . Petition for Writ of Certiorari, at 2-3, Moriana (20-1573).

The second case, HRB Tax Group v. Snarr , involves a California rule governing “public injunctions,” which are defined as injunctions that have “‘the primary purpose and effect of’ prohibiting unlawful acts that threaten future injury to the general public.’” Snarr v. HRB Tax Group, Inc. , 839 Fed.Appx. 53, 54 (9th Cir. 2020) (quoting McGill v. Citibank, N.A. , 393 P.3d 85, 90 (Cal. 2017)). California case law makes unenforceable a contract that waives the right to seek public injunctive relief in all forums. Snarr , 389 Fed. Appx. at 54. In Snarr , the plaintiff sought a public injunction against HRB, claiming the tax preparation company misleadingly steered tax filers away from a free service and toward a paid one, in violation of California consumer protection laws. Id. at 55. The plaintiff’s arbitration agreement with HRB forbids public injunctions and so is unenforceable under California law, and the Ninth Circuit refused to compel arbitration of the plaintiff’s claim. Id. at 54

In so doing, the court relied on Blair v. Rent-A-Center, Inc. , 928 F.3d 819 (9th Cir. 2019) , a prior circuit case holding that the FAA does not preempt the public-injunction rule. Blair rests on the premises that, unlike the ban on class-action waivers at issue in Concepcion , the public-injunction rule does not single out arbitration and does not undermine the purported efficiency and informality of bilateral arbitration, given that a plaintiff can seek a public injunction in a bilateral arbitration without resort to class-certification procedures. Id .  at 827-29

In its petition seeking review of Snarr , HRB rejects these arguments, contending that the rule’s focus on the general public and the higher stakes and complexity at issue undermine the traditional benefits of bilateral arbitration. Petition for Writ of Certiorari, at 16-17, Snarr (No. 20-1573). HRB also argues that, in practice, the public-injunction rule allows plaintiffs to avoid arbitration by seeking public injunctions. Id. at 5. In opposing Supreme Court review, Snarr distinguishes substantively complex claims (like those for a public injunctions) from the procedural complexity at the heart of the Court’s arbitration jurisprudence and notes that the evasion HRB raises can occur only in the particular cases of arbitration provisions drafted as HRB’s is. Respondent’s Brief in Opposition, at 26-27, Snarr (No. 20-1573). Snarr additionally argues that, under Supreme Court precedent, the “FAA does not require enforcement of arbitration provisions that expressly waive statutory claims and remedies,” as HRB’s contract does, and that the public-injunction rule applies equally to all contracts, whether or not they contain arbitration clauses. Id. at 5-6.

If the Supreme Court takes up Viking Cruises or Snarr , we will learn how far the Court is willing to extend its arbitration jurisprudence. Any decisions will have important consequences for consumer litigation in California and other states authorizing private-attorney-general suits and public injunctions.

Ali Naini [email protected]

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Consumer protection cases headline Supreme Court cases in 2021

3 years ago by Joe Veenstra, Consumer Rights Attorney

Supreme Court poised to make some decisions on consumer protection issues

The year before us looks interesting when it comes to several consumer protection matters such as FTC penalties, automatic telephone dialing systems, COVID-19-related class-action lawsuits and other consumer protection issues. Let's take a closer look at the consumer protection-related trends and cases we're keeping an eye on in 2021. 

Consumer protection issues at the forefront in 2021

Covid-19 and the possibility of class-action lawsuits.

From masks to hand sanitizer and other PPE meant to stem the spread of the COVID-19 pandemic, consumer goods and services have gone under the microscope. We're watching for a potential spike in complaints and allegations about these items and potential class-action lawsuits. 

This comes in the wake of the U.S. Food and Drug Administration easing regulation regarding PPE and related products during the pandemic. As manufacturers attempt to rise to the top, claims of these products' effectiveness could prompt legal action if they don't perform as promised, don't protect consumers as advertised or, in some cases, actually lead to consumer harm. 

We're keeping our eyes on several cases, including Archer et al. v. Carnival Corp. et al., as well as Juishan Hsu et al. v. Princess Cruise Lines Ltd., suits that aim to hold luxury cruise providers accountable for passenger exposure to COVID-19 and resulting harm.

Monetary FTC penalties considered by the Supreme Court

Under Section 13(b) of the Federal Trade Commission Act, the FTC can seek the return of what are known as ill-gotten funds through disgorgement. At issue is whether payday loan companies engaged in predatory practices in the case of AMG Capital Management LLC et al. v. FTC. Critics say Section 13(b) is too expansive, leading companies to settle instead of paying steep penalties. If the FTC should lose the case, they could be significantly limited in their efforts to seek monetary remedies via Section 13(b) as an enforcement tool. 

The Telephone Consumer Protection Act

Another case before the Supreme Court in 2021 could impact protections under the Telephone Consumer Protection Act (TCPA), which restricts automated telephone dialing systems. In the case of Facebook v. Duguid, Supreme Court justices are considering whether equipment that dials consumer telephone numbers from a preexisting list is legal under the act. If Facebook comes out on top, the number of cases considered under the TCPA would be reduced by the newly-limited scope of protections. 

Harm standard for class actions under consideration

The Supreme Court is examining a class action suit that could narrow the scope of consumer classes that can sue for damages. The suit, TransUnion LLC v. Sergio L. Ramirez, dating back to 2012, stems from a claim against TransUnion, a credit reporting agency. Class representative Sergio L. Ramirez claimed TransUnion told lenders he may have matched entries in the national database of criminals and terrorists, and as a result, he was not able to purchase a car. TransUnion maintains there is no proof other class members were injured as Ramirez was, and there is no proof a third party ever saw the inaccurate credit reports on them. 

Automatic renewal laws

Automatic renewal laws are also in the spotlight in 2021; these regulations control subscription renewal terms to eliminate unwanted charges. New York state is considering a strict ARL, following California's enactment of similar regulations ten years ago. The change would require affirmative consent from a customer before an automatic renewal is in place for products such as recurring shipments of goods, printed publications and weight loss programs. If New York does enact the regulation, other states may follow suit. 

2021: The year in consumer law and trends

In short, 2021 is poised to be an interesting year for consumer laws and trends. The legal implications of the decisions related to these issues can impact the lives of many consumers, regardless of whether they find themselves involved in individual or class action lawsuits of their own. It's worthwhile to stay informed to know where your rights as a consumer begin and end and when it's time to pursue justice with a trusted attorney for consumer issues you encounter. 

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Kroger company/albertsons companies, inc., in the matter of.

The Federal Trade Commission sued to block the largest proposed supermarket merger in U.S. history—Kroger Company’s $24.6 billion acquisition of the Albertsons Companies, Inc.—alleging that the deal is anticompetitive.

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On Oct. 29, 2018, the Federal Trade Commission filed a complaint in federal court against Simple Health Plans LLC, Steven J. Dorfman, and five other entities, alleging that the defendants misled people to think they were buying comprehensive health insurance that would cover preexisting medical conditions, prescription drugs, primary and specialty care treatment, inpatient and emergency hospital care, surgical procedures, and medical and laboratory testing. On Nov. 1, 2019, the FTC filed an amended complaint adding Candida Girouard as an additional defendant.  

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H&r block, in the matter of.

The Federal Trade Commission is taking action against tax preparation company H&R Block for unfairly deleting consumers’ tax data and requiring them to contact customer service when they downgrade to more affordable online products, and deceptively marketing their products as “free” when they were not free for many consumers. These practices cost consumers time and money.

The sellers of a supposed N95-grade face mask called the Zephyr will pay more than $1.1 million to provide full refunds to consumers nationwide, as well as a civil penalty, under a proposed settlement the Federal Trade Commission announced today. The order settling the complaint also bars Razer, Inc., from making COVID-related health misrepresentations or unsubstantiated health claims about protective health equipment and requires them to pay a civil penalty of $100,000. 

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The Federal Trade Commission is taking action   against payment processing company BlueSnap, Inc., along with its former CEO Ralph Dangelmaier and senior vice president Terry Monteith, charging them with knowingly processing payments for deceptive and fraudulent companies. The defendants have agreed to a settlement that will require them to turn over $10 million for consumers and stop processing payments for certain high-risk clients.

In a federal court complaint, the FTC charged that BlueSnap and its officers processed millions of dollars in credit card payments for ACRO Services despite substantial evidence that the company was fraudulent. The FTC sued ACRO Services in November 2022.

Joint Statement of Chair Khan, Joined by Commissioners Slaughter and Bedoya, Regarding the Health Breach Notification Rule

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The Consumer Lawyer

Case study 6: When goods do not match the sample

Mrsarbitrator.

• December 22, 2020
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By Joanne Dunham ACIArb

When writing an arbitration, it is incumbent on me to ensure that full consideration is given to all submissions, in order to afford the parties every opportunity to present their case concisely, and to the best of their abilities.   Each arbitration is approached in a meticulous fashion, with the starting point determining: i) the crux of the complaint; ii) the desired resolution; iii) the relevant laws (and their application); iv) the burden of proof; v) evidence (or balance of probability, in its absence); and vi) available remedy.

I must also consider that many consumers may not have any knowledge of legal process and, therefore, in order that they are not unfairly prejudiced, within my remit as Arbitrator I am able to pose further questions of both parties, or make recommendations/suggestions for further evidence, where I deem fit.  Indeed, the Consumer Rights Act 2015 (the current law protecting the interests of consumers), provides that where there is a lack of clarity, the consumer should be given the ‘benefit of the doubt’.

I should also clarify that the fact that the Arbitrator finds in favour of one party, does not imply that the other party is telling an untruth – it merely means that the evidence and submissions of the successful party are preferred.

The following case study highlights differences in a carpet sample which the consumer had inspected in store, and also samples which he had received in the post, not matching the carpet which was ultimately fitted at his property.

The consumer purchased carpet from the retailer’s store. The relevant law in this case was the Consumer Rights Act 2015.

During installation of the carpet, the consumer noted the carpet did not provide a match (in colour) to the samples he had previously received in the post, and those he had inspected in the retailer’s store.  The third party fitter also agreed that that the carpet for installation did not correspond to the samples.

It was arranged that the fitter would complete the installation and then return to the retailer’s store with the samples the consumer had received in the post (and which provided a match to the sample examined in store), together with an offcut of the installation.

The manager from the retailer’s store contacted the consumer and indeed confirmed that the colours did not correspond and therefore a replacement would be ordered and provided to the consumer, for installation at a later date.

When the replacement arrived in store, the consumer was invited to visit the examine the goods prior to their installation.  However, the replacement likewise did not provide a match to that which was ordered and the retailer concluded that the manufacturer must have changed the specification of the carpet.

As the consumer had ordered a range of furniture and soft furnishings in consideration of the shade of carpet he had initially ordered, he did not wish to accept the installation, nor the replacement, and requested a refund; The retailer denied the consumer’s request as it considered that whilst there was a difference in colour, the colour was within ‘tolerance’.

My consideration in this matter was whether the carpet installed at the consumer’s property was ‘as described’ and therefore whether the samples provided by the retailer pre-sale complied with section 13 of the Consumer Rights Act 2015 and, if I considered the samples received and examined in store were different to the carpet installed, what remedy the consumer was entitled to.

In accordance with Section 13 of the Consumer Rights Act 2015:

13          Goods to match a sample

(1)This section applies to a contract to supply goods by reference to a sample of the goods that is seen or examined by the consumer before the contract is made.

(2)Every contract to which this section applies is to be treated as including a term that—

(a)the goods will match the sample except to the extent that any differences between the sample and the goods are brought to the consumer’s attention before the contract is made, and

(b)the goods will be free from any defect that makes their quality unsatisfactory and that would not be apparent on a reasonable examination of the sample.

(3)See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract.

When the consumer considered which shade of carpet to purchase, he relied upon samples which were sent to him, along with a sample which he examined in the retailer’s store.  He therefore based his purchasing decision on these samples, and then proceeded to place his order on this basis, in satisfaction of the carpet being suitable for his requirements.  However, when the carpet was installed, it was obvious that the installation did not provide a match to the samples previously examined, and therefore the goods did not conform to the contract.

As it was accepted by the retailer that the carpet installed did not provide an exact match to those samples examined pre-sale, I was satisfied that the difference in shade was sufficient to cause the retailer to order a replacement, and accordingly that the difference was not ‘negligible’.  Whilst the retailer subsequently advised that the shade of the carpet was within ‘tolerance’, the retailer failed to elaborate on this point, nor provide any marker as to what would be considered as ‘within tolerance’.  Further, in order for the retailer to have been able to rely upon a ‘tolerance level’, it would have had to have brought this concept to the attention of the consumer pre-purchase, as is made clear in section 13(2)(a) of the Consumer Rights Act 2015.

As it was accepted by the retailer that the carpet was different from the samples, I found that the goods did not conform to the contract, in accordance with section 13(2)(a) of the Act.

As a consequence, I found that the consumer was indeed entitled to a full refund following the uplift and removal of the carpet, together with reimbursement of his fitting fees.

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2021 In Review: Landmark judgments by the Supreme Court

Leading cases decided by the honourable Supreme Court in the year 2021 are going to be remembered as benchmark judgments in the evolution of consumer jurisprudence. Let us know here, what significance these hold.

Dr Prem Lata

Supreme Court (SC) is the final court of appeal in the country. As per Consumer Protection Act (CPA), cases reach the Court when judgements of the National Consumers Disputes Redressal Commission (NCDRC) come in to appeal by the losing party. The SC has worked very well in 2021 to adjudicate consumer disputes that came before it. It also took cognizance of some vital consumer issues which were affecting the consumer rights adversely by giving a just interpretation to the law to end consumer sufferings. 

To put this into perspective, let us recap a bit. Year 2019 was a table-turning year when Consumer Protection Act 1986 was repealed with the Act of 2019. This new law came into force in July 2020. Consequently, year 2021 was full of queries, debates and implementation of issues arising from repeal of old Consumer Protection Act. As per the Indian Constitution, SC judgements are to be followed by all courts of the country and their interpretation must be observed in adjudicating the cases at various levels by courts at all levels. Here are the top 10 cases in Consumer Law decided in 2021:

Ireo Grace Realtech Pvt. Ltd. Vs Abhishek Khanna & Others , Civil Appeal No. 5785 of 2019 (Supreme Court)

Bench -Dr Dhananjaya, Y Chandrachud, Indu Malhotra, Indira Banerjee

Decided on –January11, 2021

Ref. Pioneer Urban Land and Infrastructure Ltd Vs Govindan Raghavan

“We are of the view that the incorporation of such one-sided and unreasonable clauses in the Apartment Buyer’s Agreement constitutes an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act. Developer cannot compel the apartment buyers to be bound by the one-sided contractual terms contained in the Apartment Buyer’s Agreement.”

  CASE 2

Narinder chopra v/s jaiprakash associates (nc).

Consumer Complaint No 3258 0f 2017 along with IA 330 of 2021&IA 1130 Of 2021

Decided On 16.5.2021

Law point:  

• Whether pending matters are to be transferred to appropriate commission after enhancement of pecuniary jurisdiction 
• There is no provision for transfer of pending cases in the new Act of 2019
• The transitional provisions contained in Sections 31, 45 and 56 expressly indicate that the adjudicatory personnel who were functioning as Members of the District Commission, SCDRC and NCDRC under the erstwhile legislation shall continue to hold office under the new legislation. 
• Previous decisions of the NCDRC which had interpreted after amendments 2002, that enhanced pecuniary jurisdiction, with prospective effect. Ref. Cases Southfield Paints and Chemicals Pvt. Ltd. v. New India Assurance Co. Ltd. & Premier Automobiles Ltd. v. Dr Manoj Ramachandran,   where the NCDRC held that the amendments enhancing the pecuniary jurisdiction are prospective in nature.

CASE 3 

M/s daddy’s builders pvt. ltd. & another vs manisha bhargava and anoth er .

(Petition for Special Leave to Appeal (Civil) No. 1240 of 2021)

Decided on February 11, 2021. Supreme Court of India

• Written statement by opposite party to complaint within 30 days or such extended period, not exceeding 15 days, should be read as mandatory
• Commencing point of limitation of 30 days, under the aforesaid provisions, would be from the date of receipt of notice accompanied by a copy of the complaint, and not merely receipt of the notice

  CASE 4 

Ireo grace realtech pvt. ltd. vs abhishek khanna & others civil appeal no. 5785 of 2019 (supreme court .

• Both the acts are equal and not conflicting or inconsistent to each other, give additional remedy to the consumers under Section 100 of CP Act 2019 & Section 88 of RERA Act 2019
• Section 79 of the RERA Act bars any civil proceedings in real estate matters but does not bar Consumer Commissions
• Section 71(1) of the RERA Act entitles a complainant to withdraw the proceedings under the CP Act with the permission of the Forum or Commission and file under RERA Act. 

CASE   5

Honda cars india limited vs sudesh berry civil appeal no.6802 of 2021 (arising out of slp (c) no.11986/2020) sc .

Decided on 12 November, 2021

• If there be any deficiency in service by the dealer or the authorised centre in rendering assistance for repairs of the vehicle, the manufacturer of the vehicle cannot be held liable. 

CASE 6  

TATA Motors Ltd Vs Antonio Paulo Vaz & Another, 2021 SCC Online SC 125  

SC held 

• Manufacturer and dealer have principal to principal relation and not of principal to agent. Manufacturer not held liable for the wrongs of dealer.                                                                 

CASE   7   Manohar Infrastructure and Constructions Private Ltd Vs Sanjeev Kumar Sharma & Ors. ; Citation: LL 2021 SC 714]

Decided on December 2021

• NC has discretionary power vested with it to impose any condition while giving stay and rightly ordered to pay entire amount as determined amount by State Commission
• This condition has to do nothing with mandatory requirement of depositing 50 per cent of determined amount by State Commission. 

CASE   8 

M/s sheth m l vaduwala eye hospital vs oriental insurance company limited and others sc judgment by j. dr dhananjaya y chandrachud, j. dt 11 dec 2021.

An insurance policy taken by doctors for professional indemnity can’t be used to make insurance companies pay the liability of compensation to patients on behalf of the hospital which is not insured. 

CASE 9. 

M/s. newtech promoters and developers pvt. ltd vs state of up & ors. , civil appeal no(s). 6753 of 2021 (arising out of slp(civil) no(s). 3426 of 2021), sc judgment dt 11 nov 2021 .

SC held  

• To ensure greater accountability towards consumers and in view of the objective of the act, ongoing projects are also brought under the provisions of the act hence retroactive application of RERA Act confirmed 
• Section 18 confers right upon an allottee to get refund of the amount deposited with the promoter with interest if the promoter fails to give possession by the date specific
• Single member of the authority under Section 81 of the Act authorised to order for refund and under Sec 40 can provide for collection of funds as revenue.

CASE   10 Union Bank Of India v/s Rajasthan Real Estate Regulatory 

High court of judicature for rajasthan bench at jaipur d.b. civil writ petition no. 13688/2021 bench: akil kureshi, uma shanker vyas , decided on 14.12.2021 .

H.C of Rajasthan held 

• That pursuant to taking possession of the project, the bank enters into the shoes of the promoter and becomes the assignee of the promoter and thus, amenable to jurisdiction of RERA.
• The RERA would prevail over ‘ SARFAESI Act ‘ 
• The rights of the real estate allottees cannot be compromised for the legal rights of Bank

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Sue the Consumer: Digital Copyright in the New Millennium

Charles Nesson and Sarah Jeong

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In December 1999, the Recording Industry Association of America brought suit against Napster, a peer-to-peer file-sharing company for downloading music. With the new millennium came a spree of other suits against similar companies, with the RIAA often emerging victorious. However, the lawsuits failed to stamp out peer-to-peer downloading, which transitioned to open source software that could not be linked to specific software developers. The lawsuit spree didn’t end either: instead, the recording industry sued the downloaders.

This background note surveys the evolution of peer-to-peer (P2P) file-sharing and copyright infringement suits, and highlights the plight of consumers in the United States’ rare statutory damages regime. Readers will become versed in the precedent cases, the Digital Millennium Copyright Act, and the basic technology of P2P and torrenting. The note sparks readers to envision a future for end users and fair use of digital content.

NOTE: This case is an adaptation of From Sony to SOPA: The Technology-Content Divide , also available from HLS Case Studies.

Learning Objectives

• Identify a systematic approach to problem solving when faced with an unresolved issue or new situation.
• Understand how the U.S. copyright system works in cases of unauthorized downloads of creative works.
• Debate the pros and cons of the current copyright regime.
• Consider a defendant’s course of action when faced with a suit or takedown notice.

Subjects Covered

Copyright, intellectual property, statutory damages, peer-to-peer file-sharing, recording industry, fair use

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Geographic: United States

Industry: Technology, Music

Event Start Date: 1984

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A member of the ADF recently told us about a conversation she had with a retailer who sold her a new refrigerator. The product came with a two year factory warranty. Two years and three months after the purchase, the motor in the refrigerator burned out, what are their consumer rights?

She approached the retailer and was told that because the factory warranty had expired, she had no recourse. They offered to repair or replace the motor, but at considerable cost. As a sign of “goodwill” to a “valued customer” they offered to give her a special discount of 20% off the normal cost of repair. That sounds fair and reasonable, doesn’t it? Perhaps it does to consumers who don’t know their rights. Fortunately, our member in this story knew that where a product has a “major fault”, such as in this case, she had consumer rights well beyond a mere two year factory warranty. Those consumer rights include replacement, repair or refund at the discretion of the consumer. As a result, she received a new refrigerator from the retailer.

We know from the Australian Competition and Consumer Commission (ACCC) that there are many cases each year in which consumers lose significant amounts of money by accepting the line from sellers that nothing can be done because the factory warranty has expired. The reported cases are likely to be “the tip of the iceberg”.

Given the story recounted to us by this member and the positive outcome she achieved through her knowledge of the law, we cannot stress enough the importance of consumers understanding their rights. We wrote about this in some detail in 2022 and you can access that story here .

Check out our other articles on a range of helpful topics

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Know Your Consumer Rights – Refunds, Repairs and Replacements

Super can be much harder to quantify  if you are a member of  MSBS or DFRDB , known as defined benefit schemes . This is because  the bulk of your super benefit will  likely  be in the form of a lifetime indexed pension, based on your years of service and final average salary. The longer you stay in Defence, the larger your lifetime pension. This cannot easily be compared to a standard accumulation super fund. Please contact  the  Commonwealth Superannuation Corporation (CSC)  for an estimate or your current benefit.  

If you have an accumulation super fund, like ADF Super, it’s much easier to compare the superannuation you get from Defence with that of a civilian employer. Generally employers pay super at a rate of 9.5% of your ordinary salary and allowances, Defence pays super to accumulation fund members at a rate of 16.4%, well above the minimum requirement.

You may not appreciate the value of your generous superannuation benefits now, but you certainly will in years to come.

ADF members receive, statutory death and invalidity cover, and rehabilitation services if needed. To replace this cover in civilian employment, you may need to take out personal insurance, such as death, disability, trauma and income protection. The cost would depend on your age and personal circumstances but could cost thousands of dollars a year.

The ADF offers free education and training and/or study assistance schemes. If you’ve been receiving tertiary education at no cost or received any form of study assistance, consider what it might cost to continue your education outside Defence.

Take some time to think about these and any other benefits provided to you by Defence to get a better understanding of the real value of your employment package.

As an ADF member you will usually receive subsidised housing or rental assistance if you are not living in your own home. If you buy a home to live in you may be eligible for a range of other assistance schemes.

If you are receiving rental assistance you can calculate the value by multiplying the fortnightly assistance amount by 26 to get an approximate annual benefit.

If you’re in service housing you can estimate your benefit by deducting the rent contribution taken out of your pay, from the amount of rent you would pay each fortnight for a similar property in the same area. Multiply the result by 26 to estimate your annual benefit.

H ousing assistance schemes  for members buying a property   include  the   Defence Home Ownership Assistance Scheme (DHOAS) ,  Home purchase assistance scheme (HPAS)  and  Home purchase or sale expenses allowance (HPSEA)

Serving ADF members receive a range of healthcare benefits, including free medical and dental treatments, rehabilitation services, psychological support and access to fitness facilities like gyms, pools and sporting fields.

To put a value on these benefits, think about what you might be paying for if you were not an ADF member. For example, what would it cost you for private health insurance, prescriptions, physiotherapist, dentist, specialist visits, gym membership or other fitness related costs?

Medicare and private health insurance

Medicare covers the costs of being admitted to hospital as a public patient, some of the fees charged by GPs and other medical professionals, and subsidised prescription costs for medicines listed on the Pharmaceutical Benefits Scheme (PBS). ADF members don’t pay the Medicare levy, currently 2% of taxable income.

Private health insurance covers some or all of the cost of a range of services not covered by Medicare, for example, a private hospital and the doctor of your choice, as well as ancillary services such as dental, optical and physiotherapy, not covered by Medicare.

Your pay consists of a base salary, with the addition of employment-related allowances. Your base salary can be found at the top of your payslip on the right, listed as ‘Annual salary’. If you need help reading your payslip, see the ADF guide on  Pay and Allowances .

Note:  From 13 May 2021, service, trainee, reserve and uniform allowances will be rolled into a single ‘Military salary’.

The earnings section of your payslip lists any allowances you receive. The amount in the ‘Current’ column is the amount you get every fortnight for each allowance. You can add allowances by typing in the name of the allowance in the ‘Add allowance’ box and clicking the + symbol.

Deployments

A deployment provides some ADF members with additional allowances that are not part of regular pay. We have not included these allowances in the calculation of your remuneration package, however, you may want to take the additional deployment allowances into account if you are comparing your ADF remuneration with civilian employment.

Medium-term goals are those that you want to achieve in 3-6 years. This could include saving for a home deposit, paying off your car or paying down all your loan debts. Having a budget and your goals written down.

Long-term goals are plans you want to achieve in around 7 years or more. This could include buying a home or paying off your mortgage, paying for your children’s education or saving for retirement.

For long-term goals think about investing some of your money. Get some financial advice to work out a good investment strategy to reach your goals.

MSBS is a hybrid defined benefit and accumulation super scheme which closed to new members on 30 June 2016. If you are an MSBS member, your benefit will consist of a lifetime indexed pension (employer component) based on your final average salary and years of service. Some or all of this benefit can be taken as a lump sum when you have met a condition of release (the defined benefit). The scheme also has a member component made up of your compulsory and voluntary personal contributions, ancillary contributions and investment returns, that you will also receive as a lump sum when you have met a condition of release (the accumulation benefit).

The pension component can be taken from age 55. If you are retiring or resigning from the ADF after reaching age 55 or are entitled to a Class A or Class B invalidity pension, you will be eligible for a pension when you leave the Service.  For all other members, your employer benefit will freeze and be preserved, increasing with CPI each year, until you are eligible to receive it.

The member component of your benefit may be left in MSBS, where it will increase with investment returns each year until you access it, or it can be rolled over to another complying super fund.

For more information contact the  Commonwealth Superannuation Corporation (CSC) .

If you joined the ADF for the first time after 30 June 2016, you will fall under the ADF superannuation arrangement, and will be a member of an accumulation fund, such as ADF Super. If you had previously served, and are a member of MSBS, you will be re-entered into MSBS on rejoining the Service.

For accumulation fund (eg. ADF Super) members, your benefit will be a lump sum based on contributions and investment returns. When you leave Defence, your money can be left in the fund, where it will continue to grow with investment returns until you meet a condition of release, or it can be rolled into another super fund.

If you’ve been in the Service for more than 12 consecutive months, you can keep your ADF Super account when you transition out and your new employer can contribute to ADF Super. In this case your insurance cover will change so contact the  Commonwealth Superannuation Corporation (CSC)  to find out what you need to know.

DFRDB is a defined benefit super scheme which closed to new members on 30 September 1991. If you are a DFRDB member, you will receive a lifetime indexed pension based on your final salary and years of service. Part of your benefit may be commuted into a lump sum, and you may receive an additional lump sum from your MSBS ancillary account, made up of voluntary personal contributions, amounts transferred in from other funds and other contributions, plus investment returns.

Short-term goals are things you want to achieve within the next couple of years. These goals could be to pay off your credit card debt, buy a new TV, go on a holiday or buy a car. Whatever you have in mind, set yourself a realistic timeframe. The best way to save for short-term goals is to reduce your spending on non-essential items, like entertainment, dining out, memberships or subscriptions. It is often easier to stay on top of your spending if you use cash, EFTPOS or a debit card when shopping instead of using your credit card.

Make your savings work for you by putting your money into an account where it will grow. Savings accounts are great because you can earn compound interest on your savings. If you’re on a low income, you may qualify for one of the savings programs offered by some charitable organisations.

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The Law Gurukul

Legal Awareness Initiative

• Feb 14, 2022

A New Case Study on Consumer Rights

Written by: Girish N P

Everybody is consumer in a way or other. But, it's pathetic that only few are aware of their rights.

Why it's important to know consumer right?

Well, the simplest answer is to get rid of deception by cheater.

What actually is Consumer Right?

It's an exclusive right of the end user as prescribed by the law of a country. Hence, consumer rights vary from country to country.

What's new now?

Because of the emerging technologies and COVID19 like unexpected situations, every government is regulating to the future scenario. Thus a reforming, revolutionary and resolving consumer rights is very much in need.

A recent case study by iconsumer.in shows a magnificent number of 33 Consumer Rights! The analysis included top economics of the world, middle income and low income category. A total of 49 countries were taken into consideration.

Here is the list: -

33 Consumer Rights across the globe

1. Right to Safety

2. Right to be Informed

3. Right to Choose

4. Right to be Heard

5. Right to Seek redress

6. Right to Consumer Education

7. Right to a healthy environment

8. Right to satisfaction of basic needs

9. Right to file a Consumer Complaint from anywhere

10. Right to seek compensation under product liability

11. Right to protect consumers as a class

12. Right to seek a hearing using video conferencing

13. Right to know the reason for complaint rejection

14. Right to Truthful Advertising

15. Right to have faulty goods repaired or replaced

16. Right to contracts without unfair clauses

17. Right to return most goods purchased online within 14 days

18. Right to free assistance from European Consumer Centers

19. Right to access goods and services on the same terms as local customer

20. Right to change your mind

21. Right to refund for delayed or non-delivery

22. Off-Premise Purchases Rights

23. Store Purchase Rights

24. Air Passenger Rights

25. Rail Passenger Rights

26. Maritime Travel Rights

27. Road Travel Rights

28. Package Travel Rights

29. Accommodation Rights

30. Right of Fair Deal

31. Right that Human Dignity is respected

32. Right to exercise supervision

33. Right to Privacy

Some of the key findings of study are:

The highest priority of all 49 countries was found to be the safety of the consumers.

The basis of all the consumer rights is guidelines set by United Nations.

Few of the countries don't have consumer rights. And some have laws on consumer protection.

Fascinated to read more in detail

Check out the link here

https://iconsumer.in/consumer-rights/

• Consumer Rights

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This New case study will help many of us. This case study on consumer right . Thank you for shared. Get More updates about you.

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E-Commerce and Consumer Protection in India: The Emerging Trend

• Original Paper
• Published: 09 July 2021
• Volume 180 , pages 581–604, ( 2022 )

Cite this article

• Neelam Chawla   ORCID: orcid.org/0000-0003-2161-1102 1 &
• Basanta Kumar   ORCID: orcid.org/0000-0003-3339-7481 2  

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Given the rapid growth and emerging trend of e-commerce have changed consumer preferences to buy online, this study analyzes the current Indian legal framework that protects online consumers ’  interests. A thorough analysis of the two newly enacted laws, i.e., the Consumer Protection Act, 2019 and Consumer Protection (E-commerce) Rules, 2020 and literature review support analysis of 290 online consumers answering the research questions and achieving research objectives. The significant findings are that a secure and reliable system is essential for e-business firms to work successfully; cash on delivery is the priority option for online shopping; website information and effective customer care services build a customer's trust. The new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India’s e-commerce growth. Besides factors such as s ecurity, privacy, warranty, customer service, and website information, laws governing  consumer rights protection in e-commerce influence customers’ trust. Growing e-commerce looks promising with a robust legal framework and consumer protection measures. The findings contribute to the body of knowledge on e-commerce and consumer rights protection by elucidating the key factors that affect customer trust and loyalty and offering an informative perspective on e-consumer protection in the Indian context with broader implications.

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Study Background

The study context, which discusses two key aspects, namely the rationale for consumer protection in e-commerce and its growth, is presented hereunder:

The Rationale for Consumer Protection in E-commerce

Consumer protection is a burning issue in e-commerce throughout the globe. E-Commerce refers to a mechanism that mediates transactions to sell goods and services through electronic exchange. E-commerce increases productivity and widens choice through cost savings, competitiveness and a better production process organisation Footnote 1 (Vancauteren et al., 2011 ). According to the guidelines-1999 of the Organisation for Economic Cooperation and Development (OECD), e-commerce is online business activities-both communications, including advertising and marketing, and transactions comprising ordering, invoicing and payments (OECD, 2000 ). OCED-1999 guidelines recognised, among others, three essential dimensions of consumer protection in e-commerce. All consumers need to have access to e-commerce. Second, to build consumer trust/confidence in e-commerce, the continued development of transparent and effective consumer protection mechanisms is required to check fraudulent, misleading, and unfair practices online. Third, all stakeholders-government, businesses, consumers, and their representatives- must pay close attention to creating effective redress systems. These guidelines are primarily for cross-border transactions (OECD, 2000 ).

Considering the technological advances, internet penetration, massive use of smartphones and social media penetration led e-commerce growth, the OECD revised its 1999 recommendations for consumer protection in 2016. The 2016-guidelines aim to address the growing challenges of e-consumers’ protection by stimulating innovation and competition, including non-monetary transactions, digital content products, consumers-to-consumers (C2C) transactions, mobile devices, privacy and security risks, payment protection and product safety. Furthermore, it emphasises the importance of consumer protection authorities in ensuring their ability to protect e-commerce consumers and cooperate in cross-border matters (OECD, 2016 ). The United Nations Conference on Trade and Development (UNCTAD), in its notes-2017, also recognises similar consumer protection challenges in e-commerce. The notes look into policy measures covering relevant laws and their enforcement, consumer education, fair business practices and international cooperation to build consumer trust (UNCTAD, 2017 ).

E-commerce takes either the domestic (intra-border) route or cross-border (International) transactions. Invariably, six e-commerce models, i.e. Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Business (C2B), Consumer-to-Consumer (C2C), Business-to-Administration (B2A) and Consumer-to-Administration (C2A) operate across countries (UNESAP and ADB, 2019 ; Kumar & Chandrasekar, 2016 ). Irrespective of the model, the consumer is the King in the marketplace and needs to protect his interest. However, the focus of this paper is the major e-commerce activities covering B2B and B2C.

The OECD and UNCTAD are two global consumer protection agencies that promote healthy and competitive international trade. Founded in 1960, Consumer International Footnote 2 (CI) is a group of around 250 consumer organisations in over 100 countries representing and defending consumer rights in international policy forums and the global marketplace. The other leading international agencies promoting healthy competition in national and international trade are European Consumer Cooperation Network, ECC-Net (European Consumer Center Network), APEC Electronic Consumer Directing Group (APECSG), Iberoamerikanische Forum der Konsumer Protection Agenturen (FIAGC), International Consumer Protection and Enforcement Agencies (Durovic, 2020 ).

ICPEN, in the new form, started functioning in 2002 and is now a global membership organisation of consumer protection authorities from 64 countries, including India joining in 2019 and six observing authorities (COMESA, EU, GPEN, FIAGC, OECD and UNCTAD). While it addresses coordination and cooperation on consumer protection enforcement issues, disseminates information on consumer protection trends and shares best practices on consumer protection laws, it does not regulate financial services or product safety. Through econsumer.gov Footnote 3 enduring initiative, ICPEN, in association with the Federal Trade Commission (FTC), redresses international online fraud. Footnote 4 Econsumer.gov, a collaboration of consumer protection agencies from 41 countries around the world, investigates the following types of international online fraud:

Online shopping/internet services/computer equipment

Credit and debit

Telemarketing & spam

Jobs & making money

Imposters scam: family, friend, government, business or romance

Lottery or sweepstake or prize scams

Travel & vacations

Phones/mobile devices & phone services

Something else

Online criminals target personal and financial information. Online trading issues involve scammers targeting customers who buy/sell/trade online. Table 1 on online cross-border complaints of fraud reported by econsumer.gov reveals that international scams are rising. Total cross-border fraud during 2020 (till 30 June) was 33,968 with a reported loss of US$91.95 million as against 40,432 cases with a loss of US$ 151.3 million and 14,797 complaints with the loss of US$40.83 million 5 years back. Among others, these complaints included online shopping fraud, misrepresented products, products that did not arrive, and refund issues. Figure  1 shows that the United States ranked first among the ten countries where consumers lodged online fraud complaints based on consumer and business locations. India was the third country next to France for online fraud reporting in consumer locations, while it was the fifth nation for company location-based reporting. Besides the USA and India, Poland, Australia, the United Kingdom, Canada, Turkey, Spain, and Mexico reported many consumer complaints. Companies in China, the United Kingdom, France, Hong Kong, Spain, Canada, Poland and Turkey received the most complaints. The trend is a serious global concern, with a magnitude of reported loss of above 60%.

Source: Data compiled from https://public.tableau.com/profile/federal.trade.commission#!/vizhome/eConsumer/Infographic , Accessed 7 October 2020

Online shopping-top consumer locations and company locations.

The international scenario and views on consumer protection in e-commerce provide impetus to discuss consumer protection in e-business in a regional context-India. The reason for this is that India has become a leading country for online consumer fraud, putting a spotlight on electronic governance systems-which may have an impact on India's ease of doing business ranking. However, to check fraud and ensure consumer protection in e-commerce, the government has replaced the earlier Consumer Protection Act, 1986, with the new Act-2019 and E-Commerce Rule-2020 is in place now.

E-commerce Growth

E-commerce has been booming since the advent of the worldwide web (internet) in 1991, but its root is traced back to the Berlin Blockade for ordering and airlifting goods via telex between 24 June 1948 and 12 May 1949. Since then, new technological developments, improvements in internet connectivity, and widespread consumer and business adoption, e-commerce has helped countless companies grow. The first e-commerce transaction took place with the Boston Computer Exchange that launched its first e-commerce platform way back in 1982 (Azamat et al., 2011 ; Boateng et al., 2008 ). E-commerce growth potential is directly associated with internet penetration (Nielsen, 2018 ). The increase in the worldwide use of mobile devices/smartphones has primarily led to the growth of e-commerce. With mobile devices, individuals are more versatile and passive in buying and selling over the internet (Harrisson et al., 2017 ; Išoraitė & Miniotienė, 2018 ; Milan et al., ( 2020 ); Nielsen, 2018 ; Singh, 2019 ; UNCTAD, 2019a , 2019b ). The growth of the millennial digital-savvy workforce, mobile ubiquity and continuous optimisation of e-commerce technology is pressing the hand and speed of the historically slow-moving B2B market. The nearly US$1 Billion B2B e-commerce industry is about to hit the perfect storm that is driving the growth of B2C businesses (Harrisson et al., 2017 ). Now, e-commerce has reshaped the global retail market (Nielsen, 2019 ). The observation is that e-commerce is vibrant and an ever-expanding business model; its future is even more competitive than ever, with the increasing purchasing power of global buyers, the proliferation of social media users, and the increasingly advancing infrastructure and technology (McKinsey Global Institute, 2019 ; UNCTAD, 2019a , 2019b ).

The analysis of the growth trend in e-commerce, especially since 2015, explains that online consumers continue to place a premium on both flexibility and scope of shopping online. With the convenience of buying and returning items locally, online retailers will increase their footprint (Harrisson et al., 2017 ). Today, e-commerce is growing across countries with a compound annual growth rate (CAGR) of 15% between 2014 and 2020; it is likely to grow at 25% between 2020 and 2025. Further analysis of e-commerce business reveals that internet penetration will be nearly 60% of the population in 2020, and Smartphone penetration has reached almost 42%. Among the users, 31% are in the age group of 25–34 years old, followed by 24% among the 35–44 years bracket and 22% in 18–24 years. Such a vast infrastructure and networking have ensured over 70% of the global e-commerce activities in the Asia–Pacific region. While China alone accounts for US$740 billion, the USA accounts for over US$$560 billion (Kerick, 2019 ). A review of global shoppers making online purchases (Fig.  2 ) shows that consumers look beyond their borders-cross-border purchases in all regions. While 90% of consumers visited an online retail site by July 2020, 74% purchased a product online, and 52% used a mobile device.

Source: Data compiled from https://datareportal.com/global-dig ital-overview#: ~ :text = There%20are%205.15%20billion%20unique,of%202.4%20percent%20per%20 year and , Accessed 12 October 2020

Global e-commerce activities and overseas online purchase.

The e-commerce uprising in Asia and the Pacific presents vast economic potential. The region holds the largest share of the B2C e-commerce market (UNCTAD, 2017 ). The size of e-commerce relative to the gross domestic product was 4.5% in the region by 2015. E-commerce enables small and medium-sized enterprises to reach global markets and compete on an international scale. It has improved economic efficiency and created many new jobs in developing economies and least developed countries, offering them a chance to narrow development gaps and increase inclusiveness—whether demographic, economic, geographic, cultural, or linguistic. It also helps narrow the rural–urban divide.

Nevertheless, Asia’s e-commerce market remains highly heterogeneous. In terms of e-commerce readiness—based on the UNCTAD e-commerce index 2017, the Republic of Korea ranks fifth globally (score 95.5) while Afghanistan, with 17 points, ranks 132 (UNCTAD, 2017 ). According to a joint study (2018) by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and Asian Development Bank (ADB), Asia is the fastest-growing region in the global e-commerce marketplace. The region accounted for the largest share of the world’s business-to-consumer e-commerce market (UNESCAP and ADB, 2019). World Retail Congress (2019) brought out the Global E-Commerce Market Ranking 2019 assessing the top 30 ranking e-commerce markets on various parameters-USA, UK, China, Japan and Germany were the first top countries. India figured at 15 with a CAGR of 19.8% between 2018 and 2022. The report suggests that companies need to enhance every aspect of online buying, focusing on localised payment mode and duty-free return. Footnote 5 The observation of this trend implies online consumers’ safety and security.

Figure  3 explains that global cross-border e-commerce (B2C) shopping is growing significantly and is estimated to cross US$1 Trillion in 2020. Adobe Digital Economic Index Survey-2020 Footnote 6 in March 2020 reported that a remarkable fact to note is about steadily accelerated growth in global e-commerce because of COVID-19. While virus protection-related goods increased by 807%, toilet paper spiked by 231%. Online consumers worldwide prefer the eWallet payment system. The survey also revealed an exciting constellation that COVID-19 is further pushing overall online inflation down.

Source: Authors’ compilation from https://www.invespcro.com/blog/cross-border-shopping/ , Accessed on 15 October 2020

Global cross-border e-commerce (B2C) market. *Estimated to cross US$ 1 Trillion in 2020.

According to UNCTD’s B2C E-Commerce Index 2019 survey measuring an economy’s preparedness to support online shopping, India ranks 73rd with 57 index values, seven times better than the 80th rank index report 2018 (UNCTAD, 2019a , 2019b ). The E-commerce industry has emerged as a front-runner in the Indian economy with an internet penetration rate of about 50% now, nearly 37% of smartphone internet users, launching the 4G network, internet content in the local language, and increasing consumer wealth. Massive infrastructure and policy support propelled the e-commerce industry to reach US$ 64 billion in 2020, up by 39% from 2017 and will touch US$ 200 by 2026 with a CAGR of 21%. Footnote 7 Now, India envisions a five trillion dollar economy Footnote 8 by 2024. It would be difficult with the present growth rate, but not impossible, pushing for robust e-governance and a digitally empowered society. The proliferation of smartphones, growing internet access and booming digital payments and policy reforms are accelerating the growth of the e-commerce sector vis-a-vis the economy.

Analysis of different studies on the growth of e-commerce in India shows that while retail spending has grown by a CAGR of 22.52% during 2015–2020, online buyers have climbed by a CAGR of 35.44% during the same period (Fig.  4 ). The government’s Digital India drive beginning 1 July 2015-surge using mobile wallets like Paytm, Ola Money, Mobiwik, BHIM etc., and the declaration of demonetisation on 9 November 2016 appears to be the prime reasons for such a vast growth in the country’s e-commerce industry. The Times of India (2020 October 12), a daily leading Indian newspaper, reported that India's increase in digital payments was at a CAGR of 55.1% from March 2016 to March 2020, jumping from US$ 73,90 million to 470.40, reflecting the country's positive policy environment and preparedness for the digital economy. The government's policy objective is to promote a safe, secure, sound and efficient payment system; hence, the Reserve Bank of India (RBI), the national financial and fiscal regulating authority, attempts to ensure security and increase customer trust in digital payments (RBI, 2020 ).

Source: Data compiled from https://www.ibef.org/news/vision-of-a-new-india-US$-5-trillion-economy , http://www.ficci.in/ficci-in-news-page.asp?nid=19630 , https://www.pwc.in/research-insights/2018/propelling-india-towards-global-leadership-in-e-commerce.html , https://www.forrester.com/data/forecastview/reports# , Accessed 12 October 2020

E-Commerce growth in India during 2015–2020.

The massive growth of e-commerce in countries worldwide, especially in India, has prompted an examination of the legal structure regulating online consumer protection.

Literature Review and Research Gap

Theoretical framework.

Generally speaking, customers, as treated inferior to their contracting partners, need protection (Daniel, 2005 ). Therefore, due to low bargaining power, it is agreed that their interests need to be secured. The ‘inequality of negotiating power’ theory emphasises the consumer's economically weaker status than suppliers (Haupt, 2003 ; Liyang, 2019 ; Porter, 1979 ). The ‘inequality in bargaining power’ principle emphasises the customer's economically inferior position to suppliers (Haupt, 2003 ). The ‘exploitation theory’ also supports a similar view to the ‘weaker party’ argument. According to this theory, for two reasons, consumers need protection: first, consumers have little choice but to buy and contract on the terms set by increasingly large and powerful businesses; second, companies can manipulate significant discrepancies in knowledge and complexity in their favour (Cockshott & Dieterich, 2011 ). However, a researcher such as Ruhl ( 2011 ) believed that this conventional theoretical claim about defining the customer as the weaker party is no longer valid in modern times. The logic was that the exploitation theory did not take into account competition between firms. Through competition from other businesses, any negotiating power that companies have vis-a-vis clients is minimal. The study, therefore, considers that the ‘economic theory’ is the suitable theoretical rationale for consumer protection today.

The principle of ‘economic philosophy’ focuses primarily on promoting economic productivity and preserving wealth as a benefit (Siciliani et al., 2019 ). As such, the contract law had to change a great deal to deal with modern-age consumer transactions where there is no delay between agreement and outcomes (McCoubrey  & White, 1999 ). Thus, the ‘economic theory’ justifies the flow of goods and services through electronic transactions since online markets' versatility and rewards are greater than those of face-to-face transactions. The further argument suggests that a robust consumer protection framework can provide an impetus for the growth of reliability and trust in electronic commerce. The ‘incentive theory’ works based on that argument to describe consumer protection in electronic transactions (McCoubrey & White, 1999 ).

Online shopping needs greater trust than purchasing offline (Nielsen, 2018 ). From the viewpoint of ‘behavioural economics, trust (faith/confidence) has long been considered a trigger for buyer–seller transactions that can provide high standards of fulfilling trade relationships for customers (Pavlou, 2003 ). Pavlou ( 2003 ) supports the logical reasoning of Lee and Turban ( 2001 ) that the role of trust is of fundamental importance in adequately capturing e-commerce customer behaviour. The study by O'Hara ( 2005 ) also suggests a relationship between law and trust (belief/faith), referred to as ‘safety net evaluation’, suggesting that law may play a role in building trust between two parties. However, with cross-border transactions, the constraint of establishing adequate online trust increases, especially if one of the parties to the transaction comes from another jurisdiction with a high incidence of counterfeits or a weak rule of law (Loannis et al., 2019 ). Thus, the law promotes the parties' ability to enter into a contractual obligation to the extent that it works to reduce a contractual relationship's insecurity. The present research uses the idea of trust (faith/belief/confidence) as another theoretical context in line with ‘behavioural economics’.

As a focal point in e-commerce, trust refers to a party's ability to be vulnerable to another party's actions; the trustor, with its involvement in networking, sees trust in the form of risk-taking activity (Mayer et al., 1995 ; Helge et al.,  2020 ). Lack of confidence could result in weak contracts, expensive legal protections, sales loss and business failure. Therefore, trust plays a crucial role in serving customers transcend the perceived risk of doing business online and in helping them become susceptible, actual or imaginary, to those inherent e-business risks. While mutual benefit is usually the reason behind a dealing/transaction, trust is the insurance or chance that the customer can receive that profit (Cazier, 2007 ). The level of trust can be low or high. Low risk-taking behaviour leads to lower trustor engagement, whereas high risk-taking participation leads to higher trustor engagement (Helge et al.,  2020 ). The theory of trust propounded by (Mayer et al., 1995 ) suggests that trust formation depends on three components, viz. ability, benevolence, and integrity (ABI model). From the analysis of the previous studies (Mayer et al., 1995 ; Cazier, 2007 ; Helge et al.,  2020 ), the following dimensions of the ABI model emerge:

Precisely, ability, benevolence and integrity have a direct influence on the trust of e-commerce customers.

Gaining the trust of consumers and developing a relationship has become more challenging for e-businesses. The primary reasons are weak online security, lack of effectiveness of the electronic payment system, lack of effective marketing program, delay in delivery, low quality of goods and services, and ineffective return policy (Kamari  & Kamari, 2012 ; Mangiaracina & Perego, 2009 ). These weaknesses adversely impact business operations profoundly later. Among the challenges that are the reasons for the distrust of customers and downsides of e-commerce is that the online payment mechanism is widely insecure. The lack of trust in electronic payment is the one that impacts negatively on the e-commerce industry, and this issue is still prevalent (Mangiaracina  & Perego, 2009 ). The revelation of a recent study (Orendorff, 2019 ) and survey results Footnote 9 on trust-building, particularly about the method of payment, preferred language and data protection, is fascinating. The mode of payment is another matter of trust-building. Today’s customers wish to shop in their local currency seamlessly. In an online shoppers’ survey of 30,000 respondents in 2019, about 92% of customers preferred to purchase in their local currency, and 33% abandoned a buy if pricing was listed in US$ only (Orendorff, 2019 ). Airbnb, an online accommodation booking e-business that began operations in 2009, has expanded and spread its wings globally as of September 2020-over 220 countries and 100 k + cities serving 7 + billion customers (guests) with local currency payment options. Footnote 10

Common Sense Advisory Survey Footnote 11 -Nov. 2019-Feb. 2020 with 8709 online shoppers (B2C) in 29 countries, reported that 75% of them preferred to purchase products if the information was in their native language. About 60% confirmed that they rarely/never bought from an English-only website because they can’t read. Similarly, its survey of 956 business people (B2B) moved in a similar direction. Whether it is B2B or B2C customers, they wanted to go beyond Google translator-this is about language being a front-line issue making or breaking global sales. Leading Indian e-commerce companies like Amazon Footnote 12 and Flipkart Footnote 13 have started capturing the subsequent 100 million users by providing text and voice-based consumer support in vernacular languages. These observations suggest trust in information that the customers can rely upon for a successful transaction.

Data protection is probably the most severe risk of e-commerce. The marketplaces witness so many violations that it often seems that everyone gets hacked, which makes it a real challenge to guarantee that your store is safe and secure. For e-commerce firms, preserving the data is a considerable expense; it points a finger to maintaining the safety and security of the e-commerce consumers’ data privacy in compliance with General Data Protection Regulations (GDPR) across countries. Footnote 14

PwC’s Global Consumer Insight Survey 2020 reports that while customers’ buying habits would become more volatile post-COVID 19, consumers’ experience requires safety, accessibility, and digital engagement would be robust and diversified. Footnote 15 The report reveals that the COVID-19 outbreak pushed the popularity of mobile shopping. Online grocery shopping (including phone use) has increased by nearly 63% post-COVID than before social distancing execution and is likely to increase to 86% until its removal. Knowing the speed of market change will place companies in a position to handle the disruption-74% of the work is from home, at least for the time being. Again, the trend applies to consumers’ and businesses’ confidence/trust-building. The safety and security of customers or consumer protection are of paramount importance.

Given the rationale above, the doctrine of low bargaining power, exploitation theory and the economic approach provides the theoretical justification for consumer protection. Economic theory also justifies electronic transactions and e-commerce operations as instruments for optimising income. The trust theory based on behavioural economic conception also builds up the relationship between the law and customer trust and thus increases confidence in the online market. These premises form the basis for this research.

Need and Instruments for Online Consumer Protection

The law of the land guides people and the living society. Prevailing rules and regulations, when followed, provide peace of mind and security in all spheres, including business activities (Bolton et al., 2004 ). Previous research by Young & Wilkinson ( 1989 ) suggested that those who have more legally strict contracts face more legal problems in contrast to trust-related issues (Young & Wilkinson, 1989 ). Time has changed; people going for online transactions go with the legal framework and feel safe and secured (Bolton et al., 2004 ). An online agreement is a valid contract. Most UNCTAD member countries, including India, have adopted various laws concerning e-governance/e-business/e-society, such as e-transaction laws, consumer protection laws, cyber-crime laws, and data privacy and protection laws. The trend indicates that the law is vital in establishing trust in online transactions.

A review of literature on e-commerce and consumer protection suggests that over the years, consumer protection in e-commerce has received significant attention, particularly from the regulatory authorities-government agencies, trade associations and other associated actors (Belwal et al., 2020 ; Cortés, 2010 ; Dhanya, 2015 ; Emma et al., 2017 ; Ibidapo-Obe, 2011 ; ITU, 2018 ; Jaipuriar et al., 2020 ; Rothchild, 1999 ; Saif, 2018 ). The OECD ( 2016 ), UNCTAD ( 2017 ), and World Economic Forum ( 2019 ) guidelines on e-commerce have facilitated countries to have regulations/laws to provide online customers with data privacy, safe transaction and build trust. Table 2 explains policy guidelines on consumer protection based on a summary of online consumer challenges and possible remedies at different purchases stages.

Research Issue and Objective

The research gap identification involves reviewing the literature on various aspects of e-commerce and consumer rights protection issues spanning two decades. An objective review of 36 highly rated (Scopus/Web Services/ABDC Ranking or the like) e-commerce related publications from over 100 articles published in the last 20 years (2000–2020) suggests that the vast majority of earlier studies in this field have been conceptual/theoretical and generic. Regarding the legal framework of e-commerce and consumers’ rights protection, six current papers exclusively in the Indian context were available for analysis and review. The observations are that while the focus on consumer privacy and rights protection concerns is too general, the legal framework's scrutiny has limited its scope. A review of selected studies on trust and consumer rights protection in e-commerce, as shown in Table 3 , reveals that application aspects, particularly legal issues, are lacking. Indian experience in e-commerce consumer rights protection through jurisprudence is nascent. Review studies show the research of a combination of management and law-related analysis in e-commerce and consumer rights protection is lacking. This scenario showed a gap in exploring a more comprehensive research opportunity in the Indian context.

While e-commerce and electronic transactions have evolved as a global trend, it is noteworthy that Indian customers are still reluctant to place complete confidence and trust in commercial online transactions. Compared to conventional offline customers, online customers face greater risk in cyberspace because they negotiate with unknown vendors and suppliers. Footnote 16 The common issues Footnote 17 related to e-commerce are data privacy and security, product quality, uncertain delivery, no/low scope of replacement, the jurisdiction of filing complaints, and inconceivable terms and conditions (Lahiri, 2018 ). “Country of origin” of the product is a significant issue in e-commerce, particularly in cross-border transactions (Bhattacharya et al., 2020 ). The inadequacy of the Consumer Protection Act, 1986 and other associated laws has surged the insecurity and lack of trust among online customers. The significance of digital payments pursued by the Government of India's essential demonetisation policy-2016 has pushed for online transaction security and consumer protection in e-commerce activities. Therefore, the Consumer Protection Act, 2019 Footnote 18 replaced the Consumer Protection Act 1986 and became effective with effect from 20 July 2020, Footnote 19 while on 7 July 2020, the Consumer Protection (E-commerce) Rules, 2020 Footnote 20 came into force to address the e-commerce challenges. Nevertheless, it was evident that to attract additional investment and to engage with the global market, India, as an emerging country, had to gain the confidence of e-consumers.

These two legislations primarily govern domestic e-commerce businesses. Therefore, the research focuses on these two legal infrastructure strands-new laws enacted during 2019 and 2020 and discusses their implications for online consumer security to increase customers' interest and trust in India's electronic transactions. Like the  ABI model , the study also examines the factors influencing e-commerce customers' confidence in the present research context.

Methodology

The research initially depended on the rigorous review of the consumer protection guidelines released from time to time by various bodies, such as the OECD and UNCATD, accompanied by an analysis of the Indian consumer protection legal structure. The Indian Consumer Protection Act, 2019 and the Consumer Protection (E-commerce) Rules, 2020 were the review and analysis subjects. The study used e-commerce driver data collected from secondary sources-published material; the survey reported e-commerce growth and trends and consumer protection and conducted an online survey of 432 online consumers during August and September 2020.

Analysing the arguments of Zikmund ( 2000 ), Bryman ( 2004 ), Saumure & Given ( 2008 ), Bill et al., ( 2010 ) and Bornstein et al. ( 2013 ) about the representative of convenience sampling and bias, we consider it is similar to that of the population, and there is no harm with due care. Regarding inherent bias in convenience sampling, data collection from different sources with different respondents’ inclusion provides more data variability and considerably reduces prejudice (Sousa et al., 2004 ; Edgar and Manz, 2017 ). Therefore, the respondents included in the research were students, professors, advocates, doctors, professionals, and homemakers, avoiding excluding family, relatives and friends to ensure bias-free. Their contact details sources were various channels, including public institution websites, social networking sites, and the authors’ email box. Assuming that more respondents feel fun filling out online questionnaires and providing truthful answers (Chen & Barnes, 2007 ; Saunders et al.,  2007 ), the study used an online survey. Furthermore, because people in the digital age are more computer/smartphone savvy, they are more likely to follow a similar trend. Besides, such a technique was convenient during the COVID-19 pandemic condition because of its timeliness, inexpensive methods, ease of research, low cost (no support for this research), readily available, and fewer rules to follow. The respondents' contact details sources were various channels, including public institution websites, social networking sites, and the authors' email box.

The study used a structured questionnaire comprising seven questions with sub-questions except the 7th one being open-ended, consuming about 8–10 min, designed based on the insights gained from responding to customer surveys of different e-commerce companies last year. Pretesting the questionnaire with 17 responses from the target group supported modifying the final questionnaire partially. The first four questions were background questions-gender, age, respondent's attitude towards internet purchasing. Question number five with sub-questions, being the focused question, provided the answer to some trust-building factors found in the literature review. Following previous research (McKnight et al.,  2002 ; Corbit et al.,  2003 ; Pavlou,  2003 ) tested the Likert-scale, this question's solicited response relied on a five-point Likert-rating scale (1 = Not important at all, 2 = Less important, 3 = Somewhat important, 4 = Important, 5 = Very important). The query six asked was about the consumer protection issues in e-commerce/online transaction-scam/fraud and grievance settlement. The final question seven was open-ended for any remark the respondent wanted to make. The questionnaire was reliable on a reasonable basis with greater internal consistency on overall internal reliability (Cronbach's alpha = 0.829) at a 1% level of significance. The Zoho Survey technique was used to solicit required information. The response rate was 76% (327) of the total emails sent (432). The retained responses were 290, i.e. 88.69% of the replies received, completed in all respects and satisfying the research requirement. The research applied statistical instruments like percentage, weighted mean and multiple regression analysis using SPSS-26 for analysis and interpretation.

Figure  5 highlights the research framework and process.

Research framework and process

Deficiency in Act, 1986 and Key Feature of the New Act Governing E-Commerce Consumer Protection

The rapid development of e-commerce has led to new delivery systems for goods and services and has provided new opportunities for consumers. Simultaneously, this has also exposed the consumer vulnerable to new forms of unfair trade and unethical business. The old Act, 1986, has severe limitations regarding its applicability and adjudication processes in consumer rights protection in e-commerce. The new Act, 2020 brings fundamental changes regarding its scope of application, penalty and governance; and envisages CCPA and vests regulating and controlling powers. Table 4 explains the comparative picture between the old Act, 1986 and the new Act, 2019.

The Act, 2019 applies to buying or selling goods or services over the digital or electronic network, including digital products [s.2 (16)] and to a person who provides technologies enabling a product seller to engage in advertising/selling goods/services to a consumer. The Act also covers online market places or online auction sites [s.2 (17)].

Necessary definition/explanation connected to e-commerce provided by the Act are:

Consumer: Meaning

If a person buys any goods and hires or avails any service online through electronic means, the person would be a consumer of the Act [Explanation b to s.2 (7)].

Product Seller: Electronic Service Providers

The electronic service providers are the product sellers under the Act and have the same duties, responsibilities, and liabilities as a product seller [s.2 (37)].

Unfair Trade Practice: Disclosing Personal Information

Unfair trade practice under the Act [s.2 (47) (ix)] refers to electronic service providers disclosing to another person any personal information given in confidence by the consumer.

Authorities: Central Consumer Protection Authority (CCPA)

The Act, 2019 provides, in addition to the existing three-tier grievance redress structure, the establishment of the Central Consumer Protection Authority [CCPA] [s.10 & 18] to provide regulatory, investigative or adjudicatory services to protect consumers’ rights. The CCPA has the powers to regulate/inquire/investigate into consumer rights violations and/unfair trade practice  suo motu  or on a complaint received from an aggrieved consumer or on a directive from the government. The specific actions it can take include:

Execute inquiries into infringements of customer rights and initiate lawsuits.

Order for the recall of dangerous/hazardous/unsafe products and services.

Order the suspension of unethical commercial practises and false ads.

Impose fines on suppliers or endorsers or publishers of false advertising.

The power of CCPA is categorical regarding dangerous/hazardous/unsafe goods and false/misleading advertisements. The CCPA has the authority to impose a fine ranging from Rs 100 k to Rs 5 million and/imprisonment up to life term for the violators depending on the type of offences committed by them (Table 5 ).

Redress Mechanism

The provisions laid down in Sect. 28 through Sect. 73 deal with various aspects of the consumer dispute redress system. The new Act has changed the District Consumer Dispute Redressal Forum terminology to the District Consumer Dispute Redressal Commission. The pecuniary jurisdiction of filling complaints in the three-tier consumer courts at the District, State and National level has increased (Table 5 ). For better understanding, Fig.  6 shows a diagrammatic picture of the judicial system of dispute settlement.

Grievance redress mechanism

The Act, 2019 provides a dispute settlement mechanism through the mediation process in case of compromise at the acceptance point of the complaint or some future date on mutual consent (Sec 37). A mediation cell would operate in each city, state, national commission, and regional bench to expedite redress. Section 74 through 81 of the Act lays down the detailed procedure. Section 81(1) maintains that no appeal lies against the order passed by Mediation, implying that the redress process at the initial stage would be speedy, impacting both the consumers and service providers.

Consumer Protection (E-Commerce) Rules, 2020

The Consumer Protection (E-Commerce) Rules, 2020, notified under the Consumer Protection Act, 2019 on 23 July 2020, aims to prevent unfair trade practices and protect consumers' interests and rights in e-commerce.

Applicability (Rule 2)

The Rules apply to:

Both products and services acquired or sold through automated or electronic networks;

All models of e-commerce retail;

All the e-commerce entities, whether they have inventory or market place model. The inventory-based model includes an inventory of goods and services owned by an e-commerce entity and directly sold to consumers [Rule 3(1) f]. In the marketplace model, an e-commerce entity has an information infrastructure platform on a digital and electronic network that facilitates the consumer and the seller. [Rule 3(1)g];

All aspects of unfair trading practise in all models of e-commerce; and

An e-commerce entity is offering goods or services to consumers in India but not established in India.

General Duties of E-commerce Entities (Rule 4)

The duties of e-commerce entities are:

An e-commerce entity must be a company incorporated under the Companies Act.

Entities must appoint a point of contact to ensure compliance with the Act.

They have to establish an adequate grievance redress mechanism; they would appoint a grievance officer for this purpose and display his name, contact details, and designation of their platform. He would acknowledge the complaint's receipt within 48 h and resolve the complaint within a month from receipt of the complaint.

If they are offering imported goods, the importers’ names and details from whom the imported goods are purchased, and the sellers’ names are to be mentioned on the platform.

They cannot impose cancellation charges on consumers unless they bear similar costs.

They have to affect all payments towards accepted refund requests of the consumers within a reasonable period.

They cannot manipulate the goods' prices to gain unreasonable profit by imposing unjustified costs and discriminating against the same class of consumers.

Liabilities of Marketplace E-commerce Entities (Rule 5)

The liabilities of marketplace e-commerce entities include the following:

The marketplace e-commerce entity would require sellers to ensure that information about goods on their platform is accurate and corresponds with the appearance, nature, quality, purpose of goods.

They would display the following information prominently to its users at the appropriate place on its platform:

Details about the sellers offering goods-principal geographic address of its headquarters and all branches and name and details of its website for effective dispute resolution.

Separate ticket/docket/complaint number for each complaint lodged through which the user can monitor the status of the complaint.

Information about return/refund/exchange, warranty and guarantee, delivery and shipment, payment modes and dispute/grievance redress mechanism.

Information on the methods of payment available, the protection of such forms of payment, any fees or charges payable by users.

They would make reasonable efforts to maintain a record of relevant information allowing for the identification of all sellers who have repeatedly offered goods that were previously removed under the Copyright Act/Trademarks Act/Information Technology Act.

Sellers’ Duties on the Marketplace (Rule 6)

The duties of sellers on the market encompass:

The seller would not adopt any unfair trade practice while offering goods.

He should not falsely represent himself as a consumer and post-product review or misrepresent any products' essence or features.

He could not refuse to take back goods purchased or to refund consideration of goods or services that were defective/deficient/spurious.

He would have a prior written contract with the e-commerce entity to undertake sale.

He would appoint a grievance officer for consumer grievance redressal.

He would ensure that the advertisements for the marketing of goods or services are consistent with the actual characteristics, access and usage conditions of goods.

He will provide the e-commerce company with its legal name, the primary geographic address of its headquarters and all subsidiaries/branches, the name and details of the website, e-mail address, customer contact details such as faxes, landlines and mobile numbers, etc.

Duties and Liabilities of Inventory E-commerce Entities (Rule 7)

As in the inventory-based model, inventory of goods and services is owned and sold directly to consumers by e-commerce entities, so inventory e-commerce entities have the same liabilities as marketplace e-commerce entities and the same duties as marketplace sellers.

The Act 2019 has several provisions for regulating e-commerce transactions with safety and trust. Since the Act is new, it would be premature to comment on its operational aspects and effectiveness. In a recent judgement in Consumer Complaint No 883 of 2020 ( M/s Pyaridevi Chabiraj Steels Pvt. Ltd vs National Insurance Company Ltd , the NCDRC Footnote 21 has proved the Act's operational effectiveness by deciding the maintainability of a claim's jurisdiction based on the new Act's provisions. However, it is inevitable that "beware buyer" will be replaced by "beware seller/manufacturer"; the consumer will be the real king. The Rules 2020 strike a balance between the responsibilities of e-commerce business owners and on-the-platform vendors. Contravention, if any, of the new regulation/rules would invite the provisions of the Act 2019. The observation is that limited liability partnerships are missing from the e-commerce entities. However, with the Act and Rules' operational experience, the judiciary or legislature will address this issue sooner or later.

Nevertheless, the Rules 2020 provide a robust legal framework to build consumers' trust in e-commerce transactions and protect their rights and interests, thereby proving the notion, "consumer is the king". The COVID-19 impact has pushed the government to adopt and encourage online compliant filling procedures through the National Consumer Helpline. Using various APPs is likely to expedite the adjudication process and benefit the aggrieved consumer and build trust in the governance system.

Reading the Rules, 2020, with the Act, 2019, the observation is that by making smartphones the primary target of the new legislation, the Act, 2019 is hailed as an all-inclusive regulatory regime that would raise customer interest investment in e-commerce. To safeguard consumers' rights in all modern-day retail commerce models, the Act, 2019 attempts to turn the jurisprudence pervading consumer protectionism from a caveat emptor to a caveat seller. In addition, the Act formally incorporated e-commerce within its limits and entered the realm of B2C e-commerce. One crucial takeaway benefit for consumers is simplifying the complaint filing process, enabling consumers to file complaints online and redress grievances.

E-commerce has become a gift to all customers in the COVID-19 pandemic's aftermath. The E-Commerce Rules, 2020 follow the stringent consumer protection regime under the new Act, 2019. In the raging pandemic, the timing of the E-Commerce Rules, 2020 is beneficial considering the current limitations on customers' freedom of travel and increased reliance on e-commerce. The grievances redress mechanism as provided in the Rules, 2020 is indubitably a calibrated step ensuring neutrality in the e-commerce market place, greater transparency, stringent penalties and a striking balance between the commitments of e-commerce firms and vendors in the marketplace. The mandatory provisions of appointing a consumer grievance redress officer and a nodal contact person or an alternative senior appointed official (resident in India) with contact details, acknowledging consumer complaints within 48 h of receipt with a ticket number, and resolving complaints within 1 month of receipt are unquestionably beneficial to consumers. Although each e-commerce company has its refund policy, all refund claims must have a timely settlement. However, anxiety abounds as daily online fraud and unethical trading practices have made consumers fearful of exposing themselves to unscrupulous vendors and service providers. Moreover, the regulations' effective enforcement would dissuade unethical retailers and service providers, thereby building consumer trust, which time will see.

Practical Contributions

The practical contributions of the paper emerge from survey findings. Concerning the primary survey, the male–female ratio is nearly 1:1, with an average age of 36 years in the age range of 20–65. As regards profession, 67% were working professionals, and 22% were students. While all of the respondents were computer/tablet/mobile-savvy, 96% had at least a five-time online shopping experience during the last 7 months between January–July 2020. The desktop with 61% response is still the preferred device for online shopping. The pricing with cash on delivery, shipping convenience, and quality reviews determined online shopping factors. About 57% of them agreed that COVID-19 impacted their online purchase habits and pushed for online transactions even though they feared insecurity about online shopping. The primary concerns were low-quality products at a high price, a refund for defective products, and a delay in settlement of wrong/excess payments. The top five leading e-commerce platforms reported were Amazon, Flipkart, Alibaba, Myntra, and IndiaMart. Netmeds was also a leading e-commerce business platform in the pharmaceutical sector. During the COVID-19 pandemic, JioMart was very popular for home-delivery food products, groceries and vegetables in the metro locality. The customer feedback system was found robust on Amazon.

The respondents' trust in online shopping reveals that a secure and reliable system was essential for 93% of the respondents. For nearly the same proportion, information about how e-business firms work provided security solutions was a priority factor. Choosing a payment option, 76% of the respondents prioritised “cash on delivery-online transfer at the doorstep. Regarding the privacy of personal information shared by online shoppers, 52% said that they cared about this aspect. Factors like warranty and guarantee (67%) and customer service (69%) were important factors of trust-building with the e-entities. Information on the websites (easy navigation/user friendly and reviews) was either important or very important, with 77% of the respondents’ confidence building to buy online. Information about the product features and its manufacturer/supplier was essential to 86% of the respondents for trust-building on the product and the supplier (manufacture) and e-commerce entity. Along with the ABI model discussed above, the presumption is that security, privacy, warranty/guarantee, customer service, and website information factors positively influence e-commerce customers' trust.

Multiple regression analysis suggests that as the  P  = value of every independent variable is below 0.05% level of significance, the independent variables security, privacy, warranty, customer service, and website information are all significant. Alternatively, the overall  P value of 0.032 with R 2 0.82 supports the presumption that security, privacy, warranty/guarantee, customer service, website information factors have a combined influence on e-commerce customers' trust.

Given this backdrop, Table 6 summarises the micro findings on respondents' online shopping behaviour, their trust and safety aspects, and understanding of the provisions of the new Act, 2019 and Rules, 2020. The higher mean value for a sub-factor implies higher importance attached to the factor by the respondents. P value at a 5% level of significance explains an individual element's contribution to trust-building behaviour for online buying.

Managerial Insights

The first observation from the data analysis is that, comparatively, the younger generation is prone to online shopping; it goes along with Xiaodong and Min ( 2020 ). Secondly, the respondents of all age groups have online buying experience even in a pandemic situation forced by COVID-19, compromising their safety and security concerns. The third observation is that factors like “cash on the delivery option (COD)”, adequate information on the e-commerce entity corporate website, and effective grievance/complaint redress mechanism are the three crucial factors that build consumers’ trust in e-commerce transactions. The reason probably is that this Act and Rules are new and significant dispute (s) could yet be reported seeking invoking the relevant provisions of the Act and Rules in an appropriate legal forum.

Further, the logical observation of the COD option being a perceived influential factor in trust-building emanates from the fact that protection and security are the essential elements that make customers hesitant toward utilizing other e-payment options. The studies by Mekovec and Hutinski ( 2012 ), Maqableh ( 2015 ) and Ponte et al.( 2015 ); have similar views. However, post-demonetization (2016), India is growing with more digital payments. In this context, we value Harvard researchers Bandi et al. ( 2017 ) contention that customers who switch to digital payments maintain their purchasing recurrence but spend more and are less likely to restore their purchases. The firms in emerging markets may appreciate gains from customer interest, notwithstanding operational increases from payment digitalization. The coherent perception about the impact of website information on trust-building is in line with the findings of Brian et al. ( 2019 ) that the online information source creates a spill-over effect on satisfaction and trust toward the retailer. The implication of the need for an effective grievance redress mechanism is that trust-building would be a tricky proposition if the company cannot ensure dedicated and tailored customer service and support. Kamari and Kamari ( 2012 ) and Mangiaracina and Perego ( 2009 ) had comparative perspectives likewise.

The final observation is that the level of trust required to engage in online shopping/transaction varies among the respondents depending on their trust perception level. The younger generation, less than 35 years old, is more risk-taking when it comes to pre-purchase online payment, but women over 45 years old are a little hesitant and prefer to do their online shopping with payment at the time of placing an order. This is ostensibly because the younger generation is more tuned to network connectivity via smartphone/tablet, and they perceive online transactions as less dangerous. The present research findings on the influence of security, privacy, warranty/guarantee, customer service, and website information on e-commerce customers' confidence-building support the earlier discussed ABI model proposition (Mayer et al., 1995 ; Cazier, 2007 ; Helge et al.,  2020 ). The  R 2 -value of 0.82 implies that there are other factors beyond what is studied. The other probable factor (s) that might have influenced trust is the new Act and Rules' effectiveness in protecting online consumers' interests. The new regulations need a couple of years (at least 2 years) of operational experience for proper assessment. The Act 2019 appears robust to protect consumer rights and interests of e-commerce customers with specific regulations (i.e. Consumer Protection (E-Commerce) Rules, 2020) in force, helping the country's economic growth.

The study variably supports Nehf ( 2007 ) view that consumers make decisions about distributing their data in exchange for different benefits like, e.g., information on web sites and access to databases. Trust, credibility, privacy issues, security concerns, the nature of the information on the website, and the e-commerce firm's reputation directly influence consumers' internet trust (Kim et al., 2008 ). Trust is the focal point of online consumers' decision-making; the observation endorses  Larose and Rifon ( 2007 ) creation of privacy alerts as part of consumer privacy self-regulation initiatives and the use of a social cognitive model to consider consumer privacy behaviours. Besides, data privacy and trust breaches adversely affect the firm's market value (Tripathi & Mukhopadhyay, 2020 ) also hold good in the present context. Figure  7 demonstrates a diagrammatic model of trust of the consumer on e-commerce transactions leading to his decision-making.

Model for consumers’ trust on e-commerce transactions

Limitations

Every research has more or less some limitations; this one has too. The main impediment was the non-availability of adequate literature defining the impact assessment of the legal framework of consumer protection measures in e-commerce. The probable reasoning is that the Acts/Laws governing e-commerce and online consumer rights protection under consideration are new; ethical dispute resolution and judicial interventions have only recently begun. Sample size limitation is also a hindering factor in the generalisation of the findings. The observations and managerial insights are likely to change with a few more years of implementation experience of the Acts.

Conclusions, Implications and Future Research

Conclusions.

Lack of trust in goods and their suppliers/manufacturers was one of the primary reasons for people not buying online. The widespread internet penetration and the growing use of computer/tablets/smartphones have pushed e-commerce growth across countries, including India. The rapid e-commerce development has brought about new distribution methods. It has provided new opportunities for consumers, forcing consumers vulnerable to new forms of unfair trade and unethical business. Further, the government's measures to protect consumer rights, particularly online consumers, are inadequate. Hence, the government enacted the Consumer Protection Act, 2019 and the Consumer Protection (E-commerce) Rules, 2020 and made them effective from July 2020. The new Act and Rules have less than 6 months of operational experience, implying premature comment on its effectiveness in providing safety and security to online consumers. However, online consumers' positive responses suggest that people gain confidence in online shopping with safety and security. Because consumer rights protection is paramount in the growth of e-commerce, the new regulations strengthen the grievance redress mechanism of online consumers, ensuring their trust-building ability, safety, and security. The "Consumer is the King with power" now. The new reform, i.e., enactment of the two laws, aids in doing business too. Some legal complications may arise with more operational experience in the future. Still, with judiciary intervention and directives, the online consumer's safety and security will pave the growth of e-commerce in India.

Implications

Some stakeholders have apprehension about the new Act and Rules' effectiveness because of the slow judiciary process, inadequate infrastructure support, and corrupt practices. The findings provide some practical implications for consumer activists, policymakers, and research communities to explore how to strengthen trust-building among online consumers. Regarding theoretical implications, the research improves the scientific community's understanding of the existing body of knowledge about online trust and e-consumer protection. The article further contributes to the body of literature on e-commerce and consumer protection, understanding the crucial factors impacting customer trust and loyalty and provides an insightful perspective on e-consumer protection in the Indian context on the eve of the new legislation enacted in 2019–2020.

Future Research

Given the presumption that e-commerce and trust are areas of constant change, trust in e-commerce will change, and it will be more challenging to integrate e-commerce into people's lives. The scope for further research to test the effectiveness of the Act, 2019, and Rule, 2020 in redressing e-commerce consumers' grievances and protecting their rights is wider only after a couple of years of operational experience. The government's policy drive for accelerating online transactions also poses challenges considering the importance of trust-building and consumer rights protection in e-commerce. Future research would shed more light on these issues.

See The United Nations Economic Commission for Europe (UNECE) guidelines on e-commerce https://www.unece.org/fileadmin/DAM/stats/groups/wggna/GuideByChapters/Chapter_13.pdf , pp 249–263, Accessed 7 October 2020.

Consumer International is a champion in the sustainable consumer movement for the last 60 years. Its vision for the future of 2030 is to address three issues-sustainability, digitalization and inclusion. See for more details https://www.consumersinternational.org/who-we-are/ .

econsumer.gov came into being in April 2001, addresses international scams and guides its members to combat fraud worldwide; see for details https://econsumer.gov/#crnt .

For more details, refer to https://icpen.org/consumer-protection-around-world .

For a detailed report, see https://www.worldretailcongress.com/__media/Global_ecommerce_Market_Ranking_2019_001.pdf , Accessed 10 October 2020.

Complete report available at https://business.adobe.com/resources/digital-economy-index.html , Accessed 10 October 2020.

https://www.ibef.org/news/vision-of-a-new-india-US$-5-trillion-economy , Accessed 7 October 2020.

Government of India’s press release, see https://pib.gov.in/PressReleseDetailm.aspx?PRID=1603982 , Accessed 7 October 2020.

See CUTS International survey at https://cuts-citee.org/pdf/Discussion_Paper_E-Commerce_in_the_Context_of_Trade_Consumer_Protection_and_Competition_in_India.pdf , CSA Research at https://insights.csa-research.com/reportaction/305013126/Marketing , https://insights.csa-research.com/reportaction/305013125/Marketing , and UNTAD study at https://unctad.org/page/data-protection-and-privacy-legislation-worldwide , Accessed 12 December 2020.

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Chawla, N., Kumar, B. E-Commerce and Consumer Protection in India: The Emerging Trend. J Bus Ethics 180 , 581–604 (2022). https://doi.org/10.1007/s10551-021-04884-3

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Received : 20 December 2020

Accepted : 24 June 2021

Published : 09 July 2021

Issue Date : October 2022

DOI : https://doi.org/10.1007/s10551-021-04884-3

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Cheated as a Consumer? 8 Important Consumer Court Judgements You Should Know About

From Supriyo Ranjan Mahapatra's complaint against Amazon for a cancelled order to Dinesh Prasad Raturi's legal action against Bata India for bag charges, here are 8 cases that highlight the importance of consumer rights and awareness. #WorldConsumerRightsDay

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The Top 10 Consumer Court cases and Trails in India – Complete List

Buying goods and services is an inevitable part of our daily lives and problems might occur from the vendors who deliver these goods and services. Below are the top 10 consumer court cases curated for the readers:

Top 10 Consumer Court Cases and Trials in India

1. Dipika Pallikal , a squash champion, and an Arjuna awardee found used her Axis Bank Debit Card in a hotel at Netherlands’ Rotterdam which failed. She had 10 times the bill amount in her account at that time. The bank said the incident was a case of ‘Force Majeure’ (an act of God/ something beyond the control) and returned a cheque of ₹1 lakh issued to her by the government of. Dipika approached the consumer court in Chennai against Axis Bank

Court judgment:

The court found that there was a deficiency of service on the part of the Axis Bank and directed the bank to pay a compensation of ₹5 lakh and ₹5000 as expenses.

2. Poonam Verma v Ashwin Patel & Ors: In this case, the respondent who is a homeopathic doctor, prescribed allopathic medicines for the treatment of a patient who did not respond to the medicine well and subsequently died. Based on the fact that the respondent was qualified and registered to practice under Homeopathy only,

It was found to be in violation of the statutory duty not to practice Allopathy under section 15(3) of the Indian Medical Council Act, 1956. Respondent’s act was held to be actionable negligence was ordered to pay a compensation of three lakhs.

3. A tea vendor, Rajesh Sakre , is an example of this who had ₹20,000 in his State Bank of India account and he withdrew ₹10,800. On his next visit to the ATM, he realized all his money was gone. When he asked the bank authorities they blamed it on him for the fault.

So, he went to the District Consumer Disputes Redressal Forum with his grievance and as he couldn’t afford a lawyer he argued the case himself.

Court Judgement:

The forum ruled in his favor and ordered the State Bank of India to return the ₹9,200 with 6% interest also to pay ₹10,000 as compensation for mental anguish and ₹2,000 for the legal expenses.

4. Baglekar Akash Kumar who was a 19-year-old got a book online and when it was delivered, he noticed that there was no MRP printed on it. He browsed the internet and saw that the book was sold at different prices at different places after which he went to the consumer forum and filed a case against Penguin Books India Pvt. Ltd and the paper company.

The court held non-publishing MRP on the product without a valid reason is ‘unfair trade practice’. MRP ensures that a consumer is not overcharged for the product. So, it is mandatory for companies to print MRP and the publishers were asked to print the retail price on the book Akash was awarded ₹10,000 as compensation and ₹2,500 as costs.

In any consumer court case, the bills and similar legal paperwork are the most powerful and useful weapons for lawsuits. This is why it’s important that you keep hold of the bills carefully. For this you can ask for our agents’ help who are experts in preparing, managing, and overtaking legal paperwork. At DailyFiling, we have consultants who are experienced with all sorts of lawsuits like income tax consultants , GST consultants , company registration agents, and more.

5. Mr. Kondaiah from Andhra Pradesh noticed that Sarvi Food Court charged him ₹40 for a water bottle where the MRP was actually ₹20. He filed his case against them in the District Consumer Disputes Redressal Forum for ‘unfair trade practice’. He supported his claim by producing the bill of the bottle.

The court decided in favor of Mr. Kondaiah and said that the practice is unjustified and Mr. Kondaiah was paid a compensation of ₹20,000, ₹20, and ₹5,000 for the costs.

6. Rajesh Rajan from Ahmedabad bought a Pepsi from a local store and found a gutka floating in it. He sent a legal notice to the Pepsi company immediately and approached a Consumer Dispute Redressal Forum and demanded compensation of ₹5 lakh for the same.

Court Decision

The consumer forum passed an order in favor of Rajesh Rajan and directed the company to pay a total of ₹4008 which on being low was later paid ₹20,000 as compensation and ₹2000 towards costs.

7. In the year 2015, K Chaathu complained against Indulekha (beauty product manufacturers) and Mammootty (an actor who was the brand ambassador of the company) for displaying misleading ads. The ads claimed that people using the soap will become ‘fair’ and ‘beautiful but the 67-year-old didn’t become fair or beautiful.

Indulekha paid Chaathu ₹30,000 in an out-of-the-court settlement while the initial claim of Chaathu was ₹50,000.

8. A person bought a house after researching and pooling hard-earned money and paid to the developer who promised to deliver within 42 months but even after 4 years the construction wasn’t started. So the two people decided to move the National Consumer Disputes Redressal Commission (NCDRC) for it.

The real estate developer was asked to refund the money with a simple interest of 9% per annum. They were awarded a compensation of ₹50,000 each.

You might also read “ How to have a mutual divorce in India ?”

9. 10 iPhone 5S Gold for ₹68 + ₹10,000 LIn 2014, Nikhil Bansal (a student) saw this unbelievable offer on the Snapdeal on iPhone which was quoted for Rs68000 (a discount of ₹46,651) and ordered it immediately. Upon receiving an order confirmation later the order was canceled stating it to be a technical glitch.

The court ruled in his favor and asked Snapdeal to deliver him the iPhone for ₹68 and asked to pay a compensation of ₹2,000 and when Snapdeal appealed this order, the compensation got raised to ₹10,000.

10. Om Prakash’s truck was stolen , and he filed a claim for compensation. The truck was taken on March 23, 2010, the police report was submitted on March 24, 2010, and the insurance claim was filed on March 31, 2010.

The insurance investigator was dispatched to verify the authenticity. The claim for Rs. 7,85,000/- was approved, however the money was never provided to Om Prakash. When he inquired about it, the insurance company responded that there had been a breach of terms and conditions:

“immediate notification of the vehicle’s loss or theft to the insurer”

While the consumer courts rejected his claim, the Supreme Court ruled in his favour. It was decided that insurance companies cannot avoid paying claimants if they have a valid justification for doing so, and the company was ordered to pay the Appellant a payment of Rs. 8,35,000/- plus interest at 8% per annum, as well as a compensation of Rs. 50,000.

These were a few cases to educate us to get rid away of the hesitation of approaching the court for a wrongful act and avail for our right as informed consumers.

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Case Study Questions Class 10 Social Science Economics Chapter 5 Consumer Rights

CBSE Class 10 Case Study Questions Social Science Economics Consumer Rights. Important Case Study Questions for Class 10 Board Exam Students. Here we have arranged some Important Case Base Questions for students who are searching for Paragraph Based Questions Consumer Rights.

At Case Study Questions there will given a Paragraph. In where some Important Questions will made on that respective Case Based Study. There will various types of marks will given 1 marks, 2 marks, 3 marks, 4 marks.

Case Study 1:

CBSE Class 10 Case Study Questions Class 10 Social Science Economics Chapter 5 Consumer Rights. Consumer Rights Case Study Questions with Solution.

The consumer is the focal point of all business activities. In contemporary times, it is widely acknowledged that the consumer is the sovereign of the market. The primary objective of business activities is to cater to the needs and desires of consumers. A commercial entity is entirely reliant on its customers not only for its survival but also for its expansion. Currently, the customer is accorded utmost importance, and every effort is made to satisfy their requirements. However, in reality, the position of the consumer is different. They are akin to slaves who are exploited by well-organized and well-informed sellers through exorbitant pricing, provision of substandard goods, supply of adulterated products, short weight, misleading advertising, and so on. Customers remain unorganized and are unaware of their fundamental rights, such as the right to safety, the right to choose, the right to be heard, and so forth. The term “Consumerism” refers to the user or customer, and “ism” denotes a movement. Therefore, the consumer movement is commonly referred to as “Consumerism.” It is a collective and organized movement of consumers. The primary objective of this movement is to educate and unite consumers and to fight for the protection of their rights.

Q1) What could have been the steps taken by consumer groups? Mark 2

Answer Consumer groups can take several steps to protect consumers, including advocating for stronger consumer rights and protection laws, raising awareness about product safety, promoting ethical business practices, and engaging in campaigns against unfair pricing and fraudulent advertising. They may also provide information and support to affected consumers.

Q2) There may be rules and regulations but they are often not followed. Why? 2

Answer Rules and regulations may not always be followed due to weak enforcement, corruption, lack of awareness, or inadequate penalties. Some businesses prioritize short-term gains over compliance, while consumers may not always be vigilant. Addressing these issues requires effective enforcement, public awareness campaigns, and stronger incentives for compliance to ensure regulations are upheld.

Case Study 2:

The Right to Safety encompasses the entitlement to be safeguarded against the promotion and sale of goods and services that pose a threat to life and property. It is imperative that the goods and services purchased not only meet immediate needs but also fulfill long-term interests.

Prior to making a purchase, consumers should insist on the quality of the products and the assurance of their reliability. It is advisable to opt for products that bear quality marks such as ISI, AGMARK, and others.

The Right to be Informed entails the right to receive comprehensive information regarding the quality, quantity, potency, purity, standard, and price of goods. This is crucial in order to protect consumers from unfair trade practices.

Consumers should demand complete information about a product or service before making a decision. This will enable them to make wise and responsible choices and avoid falling victim to high-pressure sales tactics.

The Right to Choose guarantees access to a diverse range of goods and services at competitive prices whenever possible. In cases where monopolies exist, it ensures that consumers receive satisfactory quality and service at a fair price. Additionally, this right encompasses access to basic goods and services. It is important to note that an unrestricted right of choice for the minority can result in the majority being denied their fair share.

Q1) What do you understand by mrp in packed food items? Mark 1

Answer MRP, or Maximum Retail Price, is the highest price at which a packed food item can be legally sold to consumers, inclusive of all taxes and charges.

Q2) What do you understand by Right to informed in consumer protection act? 1

Answer The Right to be Informed entails the right to receive comprehensive information regarding the quality, quantity, potency, purity, standard, and price of goods. This is crucial in order to protect consumers from unfair trade practices.

Q3) what do you understand by ISI and AGMARK? Mark 2

Answer ISI (Indian Standards Institute) is a mark that certifies product quality and safety in India. AGMARK is a certification for agricultural products, indicating their conformity to specified standards.

Case Study 3:

The Indian legislature enacted the Consumer Protection Act, 2019 to address issues related to the violation of consumer rights, unfair trade practices, misleading advertisements, and other circumstances that may be detrimental to consumer rights. The Parliament’s intention behind enacting the Act was to include provisions for e-consumers, as the buying and selling of goods and services online has significantly increased in recent years due to technological advancements.

The Act aims to provide enhanced protection of consumer rights and interests by establishing Consumer Protection Councils to resolve disputes and provide adequate compensation to consumers whose rights have been infringed. It also promotes the speedy and effective resolution of consumer complaints through alternative dispute resolution mechanisms. Additionally, the Act emphasizes the importance of consumer education to educate consumers about their rights, responsibilities, and avenues for redressal of grievances.

Consumer protection is the practice of safeguarding buyers of goods and services against unfair practices in the market. It refers to the steps adopted for the protection of consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and to provide remedies in case their rights as a consumer have been violated

Q1) What is the difference between consumer protection council and Consumer Disputes Redressal Commission? Mark 2

Answer Consumer Protection Council is a voluntary organization that educates and raises awareness about consumer rights. In contrast, Consumer Disputes Redressal Commission is a government body that legally resolves consumer disputes and complaints, providing a platform for grievance resolution and compensation.

Q2) Who provides Hallmark and ISO certification. Mark 2

Answer Hallmark certification is provided by the Bureau of Indian Standards (BIS) in India, while ISO certification is offered by various certifying bodies accredited by the International Organization for Standardization (ISO). These certifications ensure product quality and compliance with national and international standards, respectively.

Case Study 4:

Will the Indian consumer be granted greater protection under the newly enacted Consumer Protection Act of 2019? This progressive legislation has been hailed as a much-needed remedy to the shortcomings of the previous 1986 legislation. However, the true test of its effectiveness will be in its implementation. The Act has expanded its scope to include e-commerce websites, making them accountable for the products they sell. This is achieved through the introduction of the concept of ‘product liability’, which holds both manufacturers and sellers responsible for any harm or inconvenience caused by their products. This marks a significant shift towards a ‘buyer beware’ regime.

Furthermore, the Act mandates that e-commerce companies have a return policy in place and provide more detailed information about the product and the seller in their listings.

The Consumer movement has always been about the rights of the average consumer. This expansion of jurisdiction, however, would dwarf the small litigant even at the first forum of redressal.

The Act however does in principle at least, seek to remedy this by bringing about a mediation process and increasing the number of District Forums.

 Q1) Mention a few factors which cause exploitation of consumers. Mark 1

Answer Factors leading to the exploitation of consumers can include: Lack of consumer awareness and information. Asymmetric information, where sellers have more knowledge than buyers.

Q2) By what means can the consumers express their solidarity? 1

Answer Consumers can express solidarity through collective action, joining consumer advocacy groups, supporting ethical businesses, and participating in boycotts or protests.

Q3) What factors gave birth to the consumer movement in India. Mark 2

Answer The consumer movement in India emerged due to rising consumer grievances, unethical business practices, lack of quality control, and product safety concerns. Key events such as the formation of the Consumer Protection Act in 1986 and consumer activism have played pivotal roles in addressing these issues and empowering consumers.

Case Study 5:

The Ministry of Consumer Affairs, Food & Public Distribution, Department of Consumer Affairs has established a committee with the objective of developing a comprehensive framework for the Right to Repair in India. The committee’s primary focus is to generate employment opportunities through the Aatmanirbhar Bharat initiative and promote the LiFE (Lifestyle for the Environment) movement. The framework aims to facilitate convenient access to repair services not only provided by original manufacturers but also by trustworthy third-party technicians. This approach aims to reduce costs and prolong the lifespan of devices, equipment, and home appliances. The initiative seeks to establish a consumer-centric ecosystem that enhances reparability and fosters transparency through collaboration. In a similar vein, President Joe Biden of the United States issued an executive order in 2021 that included a directive to impose limits on how tech manufacturers can restrict repairs.

The term “Right to Repair” refers to government measures that prohibit manufacturers from imposing barriers that hinder consumers’ ability to repair their consumer products. The sectors identified for the right to repair include farming equipment, mobile phones/tablets, consumer durables, and automobiles/automobile equipment.

Q1) What do you understand by the term ”right to repair”? Mark 2

Answer  The “right to repair” is a concept that advocates for consumers’ ability to repair and modify their own purchased products, from electronics to appliances, without facing legal or technical barriers imposed by manufacturers. It aims to promote sustainability, reduce electronic waste, and empower consumers to extend the lifespan of their possessions.

Q2) Explain the need for consumer consciousness by giving two examples. Mark 2

Answer  Consumer consciousness is essential as it empowers individuals to make informed decisions, safeguarding their rights and interests. For instance, being aware of product labels helps consumers make healthy food choices and avoid allergens. Similarly, understanding warranties and return policies allows them to seek redress if they receive faulty goods. Consumer awareness promotes accountability and ensures a fair marketplace.

Also See: Globalization and The Indian Economy Case Based Questions

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