Empowering Consumers in the Digital Age: India’s Framework for Consumer Protection

The new Act introduced progressive provisions aimed at simplifying consumer redressal and enhancing protection.

In response to the rapidly evolving market landscape shaped by globalization, e-commerce, and emerging technologies, the Government of India has taken decisive steps to strengthen consumer protection mechanisms. Recognizing the need for a modern and robust legal framework, the Consumer Protection Act, 1986 was repealed and replaced by the Consumer Protection Act, 2019, marking a significant shift towards ensuring transparency, accountability, and efficiency in addressing consumer grievances.

Key Provisions of the Consumer Protection Act, 2019

The new Act introduced progressive provisions aimed at simplifying consumer redressal and enhancing protection. A pivotal feature of the legislation is the establishment of the Central Consumer Protection Authority (CCPA)—a dedicated agency to investigate, intervene, and initiate action in cases of consumer harm arising from unfair trade practices or misleading advertisements.

Additionally, the Act streamlined the consumer dispute resolution process through:

• Increased pecuniary jurisdiction of Consumer Commissions,

• Online filing of complaints from the consumer's place of residence or work,

• Videoconferencing for hearings, and

• Automatic admissibility of complaints if not admitted within 21 days.

It also introduced provisions for product liability, and stringent penalties for sale of spurious or adulterated products.

Three-Tier Consumer Redressal Mechanism

The Act has established a three-tier quasi-judicial system for grievance redressal:

1. District Consumer Commissions

2. State Consumer Commissions

3. National Consumer Disputes Redressal Commission (NCDRC)

These Commissions are empowered to provide specific relief and compensation in a timely manner, making consumer justice more accessible and efficient.

National Consumer Helpline (NCH): A Pre-litigation Grievance Platform

The National Consumer Helpline (NCH), under the Department of Consumer Affairs (DoCA), serves as a pre-litigation platform where consumers can register grievances in 17 Indian languages via toll-free number 1915, SMS, WhatsApp, email, the NCH mobile app, web portal (consumerhelpline.gov.in), and the Umang app.

Through the ‘Convergence’ programme, over 1,000 companies have voluntarily partnered with NCH to resolve consumer complaints directly, thereby reducing litigation and improving corporate accountability. The platform is part of the broader Integrated Grievance Redressal Mechanism (INGRAM).

Consumer Protection in the E-Commerce Sector

To protect consumers in the digital space, the government notified the Consumer Protection (E-Commerce) Rules, 2020. These rules:

• Define the responsibilities of marketplace and inventory e-commerce entities,

• Mandate grievance redressal mechanisms, and

• Aim to curb unfair trade practices online.

Moreover, the Department launched a “Safety Pledge” initiative, encouraging e-commerce platforms to commit voluntarily to selling safe and genuine products. As of National Consumer Day 2024, 13 major e-commerce platforms including Reliance Retail, Tata Group, Zomato, Swiggy, and Ola signed this pledge, aligning with global best practices.

Tackling Dark Patterns and Unfair Digital Practices

The CCPA issued “Guidelines for Prevention and Regulation of Dark Patterns” on 30th November 2023, identifying 13 manipulative design practices such as:

• False urgency

• Basket sneaking

• Subscription traps

• Confirm shaming

• Bait and switch

• Drip pricing

• Disguised ads

• Nagging, among others

These practices are now categorized as unfair trade practices under Section 2(47) of the Act, making violators liable to strict action.

Guidelines Against Misleading Advertisements and Greenwashing

To regulate advertising content, the CCPA released:

• Guidelines for Prevention of Misleading Advertisements and Endorsements (June 2022),

• Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims (October 2024), and

• Guidelines for Misleading Advertisements in the Coaching Sector (November 2024).

These regulations ensure that brands, service providers, influencers, and coaching institutes maintain truthful communication and refrain from exaggerated, deceptive, or unverifiable claims.

Recently, the CCPA imposed penalties totaling ₹77.60 lakhs on 24 coaching institutes and secured ₹1.56 crore in refunds for over 600 students through the NCH. These actions relate to issues such as denial of refund, delayed classes, and non-fulfillment of services.

Consumer Rights Enforcement and Market Accountability

The CCPA has taken strong enforcement actions against:

• E-commerce platforms selling substandard goods like non-BIS certified pressure cookers,

• Sale of car seat belt alarm stopper clips (13,118 listings delisted for endangering consumer safety),

• Travel companies, compelling them to refund ₹1,454 crore for cancelled flight tickets post-COVID-19 lockdowns.

These measures reflect the CCPA’s commitment to uphold consumer rights and public safety.

Fake Reviews and Transparency Online

To curb deceptive online behavior, the Bureau of Indian Standards (BIS) released a voluntary standard titled “Online Consumer Reviews — Principles and Requirements” on 23rd November 2022. These standards ensure reviews are:

• Genuine,

• Transparent,

• Free from manipulation, and

• Aligned with values like integrity, accuracy, privacy, and accountability.

Digitally Empowered Redressal System

Under the CONFONET scheme, videoconferencing equipment has been installed across:

• 10 benches of the National Commission (NCDRC), and

• 35 benches of State Consumer Commissions (SCDRCs).

This allows hearings to be conducted remotely, reducing logistical barriers and expediting dispute resolution.

 

India's evolving consumer protection regime represents a powerful shift towards consumer-centric governance, emphasizing digital transparency, accountability in advertising, and proactive redressal mechanisms. The enactment of the Consumer Protection Act, 2019, along with robust support from agencies like the CCPA, the BIS, and NCH, demonstrates the government’s dedication to safeguarding consumers in both traditional and digital marketplaces. The strategic inclusion of rules for e-commerce, coaching, and environmental claims underlines the comprehensive nature of this framework—ensuring that consumers are protected, empowered, and heard in every sphere.