Govt to set up consumer courts on e-commerce

Chennai: The government will establish separate e-consumer courts for redressing the grievances of online customers. A legal framework will also be put in place to check unsolicited commercial messages.

“Mechanisms will be developed to establish e-consumer courts as part of the mission mode e-government project in order to address grievances online,” the draft e-commerce policy said. The draft also finds that the “atypical” nature of an e-commerce transaction necessitates a consumer protection framework specific to this sector.

“India will move towards a system for electronic redressal of grievances, including making available compensation to the aggrieved consumer electronically. It is only rational that a transaction completed online should have an online system of grievances redressal which will, in turn, boost consumer confidence,” said the draft.

The industry hailed the decision. “Today in e-commerce customer can make a purchase sitting anywhere and get the product delivered at the doorstep. Now justice also will be delivered at the doorstep. A change in the law was much required to go along with the new business model e-commerce has brought in,” said Rahul Sethi, a veteran in the e-commerce industry.

China too has established e-consumer courts which work virtually. “This could be a virtual consumer court as in the case of China, where the consumers can file their grievances online and get justice also delivered online. A focussed court or a tribunal will make things faster and efficient than an offline court,' said Jidesh Kumar, managing partner, King Stubb and Kasiva, Advocates and Attorneys.

In a significant move in this direction, the Supreme Court in August last year had pronounced that any person who has purchased goods or services through online channel will be allowed to initiate legal proceedings against the seller at the place from which the booking or purchase was done online, which would usually be the place where he resides.

In case of offline purchases, the current law insists that a complaint must be filed where the trade or service provider is located or where the cause of action arises, regardless of where the consumer resides.