World Consumer Rights Day, observed on March 15, raises awareness about consumer rights and initiatives for stronger protection and fair marketplace practices.
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NEW DELHI: World Consumer Rights Day, being observed Today i.e., March 15, serves as a global reminder of the significance of consumer rights and protection. It highlights the need to promote the basic rights of all consumers and ensure their protection in the marketplace. The day also provides an opportunity to call for stronger consumer policies and enforcement mechanisms worldwide.
Historical Background
The observance of World Consumer Rights Day dates back to 1983, commemorating a landmark speech delivered by President John F. Kennedy to the U.S. Congress on March 15, 1962. In this speech, Kennedy became the first world leader to formally recognize consumer rights, emphasizing their importance in an increasingly complex marketplace.
Theme for 2025: ‘A Just Transition to Sustainable Lifestyles’
The theme for World Consumer Rights Day 2025 is ‘A Just Transition to Sustainable Lifestyles’, which underscores the urgent need to make sustainable and healthy lifestyle choices available, accessible, and affordable for all consumers. This year’s campaign focuses on promoting pathways to achieve sustainable consumption while ensuring that these transitions uphold fundamental consumer rights and needs.
Consumer Protection Initiatives in India
The Department of Consumer Affairs, Government of India, has undertaken several initiatives to empower consumers, enhance grievance redressal mechanisms, and ensure a fair and transparent marketplace.
Key developments in 2024 included strengthened e-commerce regulations, digital consumer protection policies, improved product safety standards, and initiatives to promote sustainable consumption.
The Consumer Protection Act, 2019
To modernize the legal framework governing consumer rights and address the complexities of globalization, technology, and e-commerce, the Consumer Protection Act, 1986 was repealed and replaced with the Consumer Protection Act, 2019.
Features of the Consumer Protection Act, 2019:
- Three-tier Quasi-Judicial Consumer Dispute Resolution System
- District Consumer Disputes Redressal Commission
- State Consumer Disputes Redressal Commission
- National Consumer Disputes Redressal Commission
- Simplified and Speedy Resolution of Consumer Disputes
- As per Section 38(7) of the Act, complaints should be resolved within three months if no product testing is required and within five months if testing is necessary.
- Protection Against Unfair Trade Practices
- Consumers can seek relief against misleading advertisements, defective products, and deficient services.
Consumer Welfare Fund (CWF)
The Consumer Welfare Fund (CWF) was established to provide financial assistance for promoting consumer rights and strengthening the consumer movement in India.
Objectives of the Consumer Welfare Fund:
- Funding Consumer Welfare Projects: States and Union Territories receive seed money under a 75:25 funding ratio (90:10 for Special Category States/UTs) to create Consumer Welfare Corpus Funds.
- Enhancing Consumer Awareness: Supporting campaigns, workshops, and educational initiatives for consumer empowerment.
Financial Allocations in 2024-25
- ₹32.68 crore was allocated to various states for the establishment and enhancement of their respective State Consumer Welfare (Corpus) Fund.
- Out of 28 States and 8 Union Territories, 24 States and 1 UT have successfully established their corpus funds.
Strengthening Consumer Grievance Redressal Mechanisms
Expansion of E-Daakhil for Online Consumer Complaints
In response to restrictions during the COVID-19 pandemic, the E-Daakhil portal was launched on September 7, 2020, by the National Consumer Dispute Redressal Commission (NCDRC). This online platform enables consumers to file complaints digitally without the need for physical presence, making grievance redressal more accessible and efficient.
Features of E-Daakhil:
- User-friendly digital platform for filing complaints and tracking case status.
- Paperless and transparent process ensuring faster dispute resolution.
- E-Jagriti Initiative launched to further streamline case management and facilitate seamless communication between stakeholders.
Enhancements to the National Consumer Helpline (NCH)
The National Consumer Helpline (NCH) plays a pivotal role in assisting consumers with their grievances. To enhance efficiency, the NCH 2.0 initiative was launched, integrating advanced technologies like AI-powered Speech Recognition, a Translation System, and a Multilingual Chatbot.
Developments
- Expanded Language Support: Now available in 17 languages, including Hindi, English, and regional languages.
- Surge in Complaints: Calls increased from 12,553 in December 2015 to 1,55,138 in December 2024.
- Integration with Regulatory Authorities: Collaboration with FSSAI, BIS, and 1000+ companies under the Convergence Programme for faster dispute resolution.
- Accessible Grievance Registration: Complaints can be filed via toll-free number (1915), WhatsApp, SMS, email, NCH app, and the Umang app.
Jaago Grahak Jaago Initiative
The Jaago Grahak Jaago campaign, along with its dedicated portal and mobile application, provides real-time alerts regarding e-commerce transactions, notifying consumers about potentially unsafe URLs and fraudulent websites.
Consumer Protection in E-Commerce and Digital Transactions
New E-Commerce Guidelines
To protect consumers from unfair trade practices, the Consumer Protection (E-commerce) Rules, 2020 were introduced under the Consumer Protection Act, 2019.
Provisions of the Rules
- Mandatory grievance redressal mechanisms for e-commerce platforms.
- Liabilities for marketplace and inventory e-commerce entities.
- Prohibition of misleading advertisements and deceptive marketing practices.
Regulation of Dark Patterns in E-Commerce
The “Guidelines for Prevention and Regulation of Dark Patterns, 2023”, issued by the Central Consumer Protection Authority (CCPA) on 30th November 2023, identify 13 specific dark patterns that are considered deceptive and unfair trade practices in e-commerce. These dark patterns are designed to manipulate consumer behavior and lead to misleading transactions. The identified dark patterns are:
- False Urgency – Creating a sense of urgency through countdown timers or limited stock warnings without any real basis to pressure consumers into making quick purchases.
- Basket Sneaking – Adding additional products or charges (such as insurance or donations) to the cart without the consumer’s explicit consent.
- Confirm Shaming – Guilt-tripping consumers into making a purchase by using language that shames them for not proceeding (e.g., “Don’t miss out on this amazing deal!” or “No, I don’t like saving money”).
- Forced Action – Forcing consumers to take a specific action (such as subscribing to a newsletter) before they can access a product or service.
- Subscription Trap – Making it difficult for consumers to cancel subscriptions or auto-renewing subscriptions without clear consent and an easy opt-out option.
- Interface Interference – Manipulating the website layout or user interface to nudge consumers into making unintended choices (e.g., making the “Accept” button more prominent than the “Decline” button).
- Bait and Switch – Advertising a product or service at a particular price or with specific features but then changing the terms once the consumer is engaged.
- Drip Pricing – Displaying a lower initial price and revealing additional charges (such as service fees or delivery fees) later in the checkout process.
- Disguised Advertisements – Presenting advertisements as genuine content, misleading consumers into believing they are interacting with organic content rather than paid promotions.
- Nagging – Repeatedly pushing pop-ups, notifications, or requests for the consumer to take an action, even after they have dismissed them.
- Trick Questions – Using misleading or confusing language in forms and checkboxes to trick consumers into agreeing to something they did not intend to.
- Rogue Malwares – Embedding misleading warnings or malware pop-ups that deceive consumers into taking unnecessary actions.
- Privacy Zuckering – Tricking consumers into sharing more personal information than they intended by hiding privacy-related terms in complex agreements.
These guidelines aim to enhance consumer protection in e-commerce by prohibiting such deceptive practices and ensuring fair trade practices across online platforms.
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BIS Draft Standard on E-Commerce Self-Governance
The Bureau of Indian Standards (BIS) introduced a draft framework for E-Commerce Principles and Guidelines for Self-Governance, focusing on fair business practices and consumer protection.
Highlights:
- Transparent Product Disclosures: Clear pricing breakdowns, seller details, country of origin, and return policies.
- Enhanced Consumer Data Protection: Mandates platforms to obtain explicit consent for marketing communications.
- Stringent Anti-Counterfeiting Measures: Swift action on fake product complaints.
- Secure Payment and Refund Mechanisms: Protection against deceptive pricing and hidden charges.
World Consumer Rights Day 2025 serves as a critical moment to reaffirm commitments towards sustainable consumption and robust consumer protection. With technological advancements, policy enhancements, and strengthened grievance redressal systems, India continues to progress towards a fair, transparent, and consumer-friendly marketplace. By ensuring accessibility, affordability, and ethical business conduct, consumer rights can be safeguarded, leading to a more just and sustainable future for all.
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