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E-Commerce and Consumer Protection in India: The Emerging Trend

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Abstract

Given the rapid growth and emerging trend of e-commerce have changed consumer preferences to buy online, this study analyzes the current Indian legal framework that protects online consumers interests. A thorough analysis of the two newly enacted laws, i.e., the Consumer Protection Act, 2019 and Consumer Protection (E-commerce) Rules, 2020 and literature review support analysis of 290 online consumers answering the research questions and achieving research objectives. The significant findings are that a secure and reliable system is essential for e-business firms to work successfully; cash on delivery is the priority option for online shopping; website information and effective customer care services build a customer's trust. The new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India’s e-commerce growth. Besides factors such as security, privacy, warranty, customer service, and website information, laws governing consumer rights protection in e-commerce influence customers’ trust. Growing e-commerce looks promising with a robust legal framework and consumer protection measures. The findings contribute to the body of knowledge on e-commerce and consumer rights protection by elucidating the key factors that affect customer trust and loyalty and offering an informative perspective on e-consumer protection in the Indian context with broader implications.

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Fig. 1
The alternative text for this image may have been generated using AI.

Source: Data compiled from https://public.tableau.com/profile/federal.trade.commission#!/vizhome/eConsumer/Infographic, Accessed 7 October 2020

Fig. 2
The alternative text for this image may have been generated using AI.

Source: Data compiled from https://datareportal.com/global-dig ital-overview#: ~ :text = There%20are%205.15%20billion%20unique,of%202.4%20percent%20per%20 year and , Accessed 12 October 2020

Fig. 3
The alternative text for this image may have been generated using AI.

Source: Authors’ compilation from https://www.invespcro.com/blog/cross-border-shopping/, Accessed on 15 October 2020

Fig. 5
The alternative text for this image may have been generated using AI.
Fig. 6
The alternative text for this image may have been generated using AI.
Fig. 7
The alternative text for this image may have been generated using AI.

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Notes

  1. See The United Nations Economic Commission for Europe (UNECE) guidelines on e-commerce https://www.unece.org/fileadmin/DAM/stats/groups/wggna/GuideByChapters/Chapter_13.pdf, pp 249–263, Accessed 7 October 2020.

  2. Consumer International is a champion in the sustainable consumer movement for the last 60 years. Its vision for the future of 2030 is to address three issues-sustainability, digitalization and inclusion. See for more details https://www.consumersinternational.org/who-we-are/.

  3. econsumer.gov came into being in April 2001, addresses international scams and guides its members to combat fraud worldwide; see for details https://econsumer.gov/#crnt.

  4. Complete report available at https://business.adobe.com/resources/digital-economy-index.html, Accessed 10 October 2020.

  5. Government of India’s press release, see https://pib.gov.in/PressReleseDetailm.aspx?PRID=1603982, Accessed 7 October 2020.

  6. Detailed findings at https://insights.csa-research.com/reportaction/305013125/Marketing, Accessed 19 October 2020.

  7. Amazon India began testing a Hindi for its mobile website, marking its first foray into vernacular languages in August 2018.

  8. Flipkart started voice assist in multiple languages-Hindi and English to make shopping easier in June 2020.

  9. See cross-border shopping statistics and trends at https://www.invespcro.com/blog/cross-border-shopping/, Accessed 15 October 2020.

  10. For global trend-access, explore, and personalized insights, see details at https://www.forrester.com/data/forecastview/reports#, Accessed 15 October 2020.

  11. For defined common issues, see Government’s e-gazette at http://egazette.nic.in/WriteReadData/2020/220661.pdf, Accessed 15 October 2020.

  12. See Government’s e-gazette notification http://egazette.nic.in/WriteReadData/2019/210422.pdf, Accessed 30 October 2020.

  13. Full reported case details are available at https://indiankanoon.org/doc/49459460/, Accessed November 22, 2020.

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Acknowledgements

The authors express their appreciation to the section editor and two anonymous reviewers for providing insightful comments and constructive suggestions to improve the paper's quality.

Funding

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

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Authors and Affiliations

  1. Vivekananda Institute of Professional Studies, Guru Govind Singh Indraprastha University, New Delhi, 110027, India

    Neelam Chawla

  2. Academic, Research and Legal Consultant, C-202/Satyam Tower, Bomikhal, Bhubaneswar, 751010, India

    Basanta Kumar

Authors
  1. Neelam Chawla
  2. Basanta Kumar

Corresponding author

Correspondence to Neelam Chawla.

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The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

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Chawla, N., Kumar, B. E-Commerce and Consumer Protection in India: The Emerging Trend. J Bus Ethics 180, 581–604 (2022). https://doi.org/10.1007/s10551-021-04884-3

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