E-commerce Companies Likely To Come Under Ambit Of Consumer Protection

Following numerous complaints against e-tailers, alleging unfair business practices, the Consumer Affairs Department has recommended bringing these companies under the purview of consumer protection law, a media report stated.

Union Food Minister Ram Vilas Paswan had last month said that there is a need to protect the rights of online shoppers and help them find legal recourse for their complaints. A proposal to form a consumer protection authority to act as a watchdog for marketing of ‘unsafe and hazardous’ products has also been moved.

According to a report by research and consultancy firm RNCOS, the current market size of online retail sector is about $3.5 billion (more than Rs 21,000 crore). It is expected to grow at a compound annual rate of 40-45% in the next four years.
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