Will strict action be taken against e-commerce platforms violating consumer rights?

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Will strict action be taken against e-commerce platforms violating consumer rights?

Synopsis

Union Consumer Affairs Minister Pralhad Joshi announced that the government will take strict action against e-commerce platforms that mislead consumers with hidden fees. This move aims to enhance transparency and protect consumer rights in India's growing e-commerce sector. Discover how these measures could reshape online shopping experiences.

Key Takeaways

  • Strict action against misleading e-commerce platforms.
  • Focus on eliminating hidden charges.
  • Investigation into Cash-on-Delivery (COD) practices.
  • Monitoring of GST benefits passed to consumers.
  • Commitment to upholding consumer rights.

New Delhi, Oct 3 (NationPress) Union Consumer Affairs Minister Pralhad Joshi declared on Thursday that stringent measures will be enforced against e-commerce platforms that mislead customers and impose unfair charges, such as additional fees for Cash-on-Delivery (COD).

He emphasized that such practices are referred to as “dark patterns,” which take advantage of consumers and contravene the principles of fair trade.

The minister's remarks followed a post on the social media platform X, in which a user pointed out how e-commerce companies frequently incorporate numerous hidden fees under the guise of “offer handling fee,” “payment handling fee,” and “protect promise fee,” likening it to the debated “rain fee” that some food delivery services impose.

“Forget the rain fee by Zomato/Swiggy/Zepto. Witness the masterstroke by Flipkart: offer handling fee (for the discount you advertised??). Payment handling fee (for allowing me to pay you??). Protect promise fee (protecting me from what… satisfaction?),” the user remarked.

Joshi indicated that the Department of Consumer Affairs has already received numerous complaints regarding COD charges and has initiated a thorough investigation.

“Platforms are under rigorous scrutiny, and any infringement of consumer rights will lead to decisive action to ensure transparency and maintain fair practices within India’s expanding e-commerce sector,” he asserted.

The government has been closely monitoring e-commerce platforms in recent months.

It is not only observing unfair charges but is also examining how these companies pass on Goods and Services Tax (GST) benefits to consumers.

The Consumer Affairs Department, via the National Consumer Helpline, has already addressed 3,981 GST-related complaints.

Officials are also verifying whether online platforms selling FMCG items like shampoo, pulses, and daily necessities comply with GST rate reductions.

“The CCPA is vigilantly overseeing grievances to ensure transparency, protect consumers from misinformation, and guarantee that the benefits of GST reforms genuinely reach every Indian,” Joshi remarked earlier.

India’s GST collections reached Rs 1.89 lakh crore in September, marking a 9.1 percent increase year-on-year (YoY) — the fastest growth in four months.

Officials asserted that ensuring tax advantages are correctly passed on to consumers will stimulate demand and bolster domestic growth.

With intensified monitoring and a crackdown on unfair trade practices, the government aims to shield consumers from hidden fees while ensuring that India’s flourishing e-commerce sector operates equitably.

Point of View

I recognize the necessity for robust consumer protections in the ever-evolving e-commerce landscape. The government's proactive stance on addressing hidden fees and ensuring transparency reflects a commitment to uphold consumer rights, which is essential for fostering trust and fairness in the marketplace.
NationPress
03/10/2025

Frequently Asked Questions

What actions are being taken against misleading e-commerce platforms?
The government is enforcing stringent measures against e-commerce platforms that mislead consumers and impose unfair charges.
What are 'dark patterns' in e-commerce?
'Dark patterns' are deceptive practices that exploit consumers, such as hidden fees and misleading pricing strategies.
How is the government monitoring e-commerce platforms?
The Department of Consumer Affairs is scrutinizing platforms, investigating complaints, and ensuring fair practices.
What are the recent GST updates related to e-commerce?
The government is ensuring that GST benefits are passed on to consumers and has resolved thousands of GST-related complaints.
What does this mean for consumers?
Consumers can expect greater transparency and fairness in online shopping, protecting them from hidden charges.
Nation Press