Consumer Protection and Product Liability Litigation arising out of e-commerce websites
Introduction
In today’s digital era and cyber space, the consumers look out for enhancing their shopping experience and adding value in their utilitarian outlook by ensuring wider availability in choices and higher alternatives for customization which are available in a singular platform with the ease of payments, usage, return and refund and attractive pricing. These different desires of consumers have been well received by the e commerce giants and have been blended in to cater to them.
However, as all these things might be conveniently luring to the consumers there are many drawbacks to it as well one of them being it is not easy to affix accountability upon e commerce sellers for the products sold by them and where to seek redressal for the disputes arising out of any transaction/ purchase made on ecommerce websites.
Liability of e commerce websites under the Consumer Protection Act, 2019
Under Section 2(16) the new regime of Consumer Protection laws of 2019 and Consumer Protection (E-Commerce) Rules, 2020 the e-commerce websites shall be included under the purview of seller and shall be liable for the products sold on their website.
This is to say that act applies to a person/entity buying or selling goods or services over the digital or electronic network, including digital products and to a person who provides technologies enabling a product seller to engage in advertising/selling goods/services to a consumer.
Where to file such disputes that arise when a good is purchased or service is availed from an online seller ?
The Consumer Protection Act, 2019 now provides that the consumers can register their complaints:-
- the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, ordinarily resides or carries on business or has a branch office or personally works for gain;
- any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case the permission of the District Commission is given;
- the cause of action, wholly or in part, arises; or
- The complainant resides or personally works for gain.
This is to say that a person can file a consumer complaint before a consumer court at a place where they ordinarily reside or work for gain for assuaging their grievance.
Such a complaint can be filed at either of these three forum listed below depending on the value of goods and services
- District Consumer Disputes Redressal Commission or District Commission
- State Consumer Disputes Redressal Commission or State Commission
- National Consumer Disputes Redressal Commission or National Commission.
What is the pecuniary jurisdiction of Commissions?
| Consumer Fora | Pecuniary Jurisdiction (in Rs.) |
| District Commission | Upto Rs. 50 Lakhs |
| State Commission | From Rs. 50 Lakhs to Rs. 2 Crore |
| National Commission | Rs. 2 Crore upwards |
Conclusion
The change in legal framework has enabled the consumers to file a complaint for redressal of their grievance from a place where they can easily contest the case and has brought the e commerce industry within domain of accountability which is a progressive step.
You may contact me for consultation or advice by visiting Contact Us and Call us