Govt To Overhaul Consumer Protection Act To Bring e-tailers Under Its Ambit
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The government is planning to overhaul the The Ministry of Consumer Affairs is working on protecting the interest of customers as shopping is no more constrained by geographical location. "Technology has erased geographic boundaries... For effective consumer protection it is essential that new law addresses these challenges," a ministry official said.
The new law would cover both vendors in online space and also marketplace providers like
"This is a welcome order for consumers, as they can file for damages or a compensatory suit in their local jurisdiction saving time and money," says Sanjay Ashar, senior partner of Crawford Bailey & Co.
"However it will be difficult for ecommerce companies to fight at several courts. When a company has many cases related to similar products or services, it can go to High Court and transfer those cases to one place. Also, if two courts in different places pass contradicting orders, it will be difficult for the company to know which one to follow, until they get clarity from higher courts. This will certainly increase the legal cost of the e-commerce industry," he added.
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