E-commerce transactions need to be monitored, say experts

There is a grave need for a well-defined legal framework to regulate e-commerce transactions to ensure consumer protection, say experts. There is a need for guidelines that make shopping on the Internet a safe experience for consumers. The cyber laws also need to be amended to protect consumer welfare.

According to Keshav Desiraju, Secretary, Department of Consumer Affairs, Government of India, e-commerce business has been pegged at $15 billion, and is said to be growing at 35-40 per cent year on year. The travel segment alone accounts for over 70 per cent, other segments too are growing at an indescribable pace. It has huge potential with opportunities ranging from finance and health to education and other services.

Addressing the audience at a seminar on e-Commerce and the consumer responsibilities and rights on Saturday, organised by the Consumers Association of India, he said it is therefore essential to create a policy framework and regulatory environment that favours the development of e-commerce and ensures protection of consumers.

Experts say the Consumer Protection Act 1986 does not have any specific law to regulate online transactions.

S Gopalakrishnan, Commissioner, Civil Supplies and Consumer Protection, Government of Tamil Nadu, too reiterated the need to amend the act suitably so that it takes within its jurisdiction all kinds of consumer transactions, as each situation needs a different set of tools to handle.

He also highlighted to need to amend the Information Technology Act to prevent misuse of any personal information, and also to reduce the existing information asymmetry.