E-commerce platforms under CCPA lens as consumer complaints spike 30-40%

The Central Consumer Protection Authority has stepped up its scrutiny of e-commerce platforms after a spurt in unfair trade practices.

According to chairperson Nidhi Khare of the regulatory body, e-commerce-related complaints have increased 30-40 percent over the last four-five years.

“During the pandemic, consumers shifted to e-commerce and thus the government wants to ensure no unfair trade practices are prevalent through these platforms,” Khare told CNBC-TV18.

She also highlighted that now, with the Consumer Protection Act in place, the seller has to ensure that consumer rights are not violated and said that the consumers are increasingly using the National Consumer Helpline to register their complaints.

“Fourteen rules and five regulations have been notified under the Consumer Protection Act and the district collectors have been given the rights to take enforcement actions in violations of consumer rights,” she said.

The consumer safety watchdog also plans to kick off a campaign to ensure proper compliance and implementation of quality standards of several consumer durables used in households such as gas stoves and geysers.

“The CCPA will take up suo moto class action against manufacturing and sales of consumer durables sold without BIS mark, QCO standards,” Khare said.

She informed that the CCPA issued a show-cause notice to Club Mahindra & Holidays in November 2021, after it received more than 150 complaints were received about the company’s unfair trade practices and misleading advertisements.

The complainants alleged that there was misuse of floating week time share model, misleading marketing and advertising, misrepresentation and fraud to obtain contract, violation of Consumer Protection Act, 2019 and deficiency in services.

However, Mahindra Holidays & Resorts has challenged the order at Bombay High Court and the matter is sub-judice.

The consumer protection authority recently also received a few complaints against coaching centres for advertisements making wrong claims.