Consumer Complaints against E-commerce Platforms

Consumers can also complain against unfair trade practices involving digital and other products bought through e-commerce platforms and retailers. Any person who owns, operates or manages any digital or electronic platform offering goods or services for sale, is an e-commerce entity. An e-commerce entity is separately governed by e-commerce rules¹ in India.

These rules are only applicable to professional and commercial businesses and not for an individual acting in their personal capacity². For instance, a consumer can complain against Amazon as it is an e-commerce entity regularly engaged in the activity of sale of goods through its e-commerce website. However, if there are issues with a product on a platform like Amazon, Amazon would be held liable for product liability actions, not the product manufacturer.

Interestingly, the product liability for an e-commerce entity extends beyond India. This means that these platforms are equally liable under the consumer protection law, in addition to their own country’s domestic laws³. For instance, a foreign e-commerce entity such as Liyid delivers its products in India; in case of any harm caused due to defective products, a product liability action can be brought against Liyid in India and in the foreign country.

Liabilities of e-commerce platforms

E-commerce platforms are held liable for the following:

• Price manipulations on their sites,⁴
• Negligence in services provided and discrimination against customers⁵.
• Misleading advertisements, unfair trade practices⁶ and inaccurate descriptions/information of products.
• Refusing to refund or return a defective product⁷.
• Failure to provide warnings or instructions with respect to the goods or services availed by a customer⁸.
• False descriptions, and violations about the authenticity and images of the goods or services advertised for sale on their platform⁹.

However, they will not be liable if the dangers of the product are common knowledge. For example, if a consumer misuses or alters a dangerous product like flamethrowers then the e-commerce entity cannot be held liable for this¹⁰.

Complaining to E-Commerce Platforms

E-commerce platforms must establish a ‘Grievance Redressal Mechanism’ and should appoint a ‘Grievance Officer’ for Indian customers to get their concerns addressed¹¹. The details about the Grievance Redressal Mechanism must be displayed on the e-commerce platform. The Grievance officer must acknowledge the complaint within 48 hours and address the concern within a period of one month¹².

1. Consumer Protection (E-Commerce) Rules, 2020.[↩]
2. Proviso to Rule 2, Consumer Protection (E-Commerce) Rules, 2020[↩]
3. Rule 2(2), Consumer Protection (E-Commerce) Rules, 2020.[↩]
4. Rule 4(11)(a), Consumer Protection (E-Commerce) Rules, 2020.[↩]
5. Rule 4(11)(b), Consumer Protection (E-Commerce) Rules, 2020.[↩]
6. Rule 4(3), Consumer Protection (E-Commerce) Rules, 2020[↩]
7. Rule 7(4), Consumer Protection (E-Commerce) Rules, 2020[↩]
8. Section 85(c), Consumer Protection Act, 2019[↩]
9. Rule 5(2), Consumer Protection (E-Commerce) Rules, 2020[↩]
10. Section 87(1), Consumer Protection Act, 2019[↩]
11. Rule 4(4), Consumer Protection (E-Commerce) Rules, 2020[↩]
12. Rule 4(5), Consumer Protection (E-Commerce) Rules, 2020[↩]