CONSUMER PROTECTION IN THE ERA OF DIGITAL COMMERCE: EMERGING CHALLENGES, REGULATORY GAPS, AND FUTURE REFORMS UNDER INDIAN LAW

Abstract

The digital marketplace in India has expanded so rapidly that the current consumer-protection regime has been unable to maintain pace with the developments. Consequently, consumers find themselves confronted with numerous legal issues that were never considered by the current regulatory framework. This paper analyzes the Consumer Protection Act, 2019 ("CPA 2019") along with the overall legal regime of digital commerce which including the Indian Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023, and the rules made thereunder. It examines the effectiveness of these provisions in light of the modern day realities of online shopping. Through the use of doctrinal and comparative analysis, this study highlights the major shortcomings in the area of algorithmic manipulation, dark patterns, transboundary disputes, platform liability, manipulated reviews, fake products and the burgeoning trend of social commerce. Furthermore, the new issues like Non-Fungible Tokens, subscription traps and misleading marketing through AI have been considered as well. In light of lessons learnt from the Digital Services Act of European Union (2022), Online Safety Act of United Kingdom (2023) and enforcement by the United States Federal Trade Commission, this study suggests reforms for India. It is argued that India requires a novel E-Commerce Consumer Protection Framework, which encompasses data protection, algorithm accountability, regulator-platform cooperation and a simple dispute resolution mechanism. Such an E-commerce regime will be more appropriate to meet the challenge posed by the 450+ million people who do their shopping online. The conclusions reached in this study will be of relevance to academia, policymakers, judiciary, and the platform companies equally.