e consumer – challenges and hurdles

CHENNAIIII Floor, ‘Creative Enclave’, 148-150, Luz Church Road,

Mylapore,Chennai - 600 004.

Tel: +91 - 44 - 24984821

BANGALORE Suite 920, Level 9,

Raheja Towers,26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 65462400

COIMBATORE#1533, Trichy Road,

Coimbatore – 641018.Tel: +91 - 422 - 6552921

HYDERABADFlat No. A-701,

Brindavan Apartments,Niloufer Hospital Road,

Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009

COCHINSuite 49, 8th Floor, Centre A,

Alapatt Heritage Building,MG Road, Cochin – 682035

Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

SUSHMA SOSHA PHILIP

E-Consumer – Challenges and Hurdles



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

What is E-Commerce?

• A practice of purchasing and selling products and services over the internet or other electronic systems - Anita Rosen, author.

• ‘The production, distribution, marketing, sale or delivery of goods and services by electronic means’- The World Trade Organization

• On line business activities. • Any form of business transactions - parties -

not physically present - electronic interactions.



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Who is an E-Consumer?



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

• Consumer who conducts business transactions via an electronic portal

• Secondary retailer (business to business transactions)

• Group

• Individual

Who is an E-Consumer?



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Nature of an E-Commerce Transaction

• Electronic contracts • Governed by the Indian Contract Act, 1872 (“ICA”)

and Section 10A of the Information Technology Act, 2000 (“IT Act”) - validity to e-contracts

• The Supreme Court - Trimex International FZE Ltd. Dubai v. Vedanta Aluminum Ltd. – “e-mail exchanges between parties regarding mutual obligations constitute a contract.”



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Validity of E-Contracts

• Stamp Paper – now e-stamp paper available• Consent and acceptance - Section 16(3) of the ICA;

unconditional acceptance – basic principle of contracts

• Jurisdiction



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Issues

• No specific laws to protect consumers in the online space

•Infrastructural Problems

•Tax Evasion by the retailer

•IPR infringement



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

• Denial of service Attacks (DoS) – Eg: Twitter attack

• Digital Illiteracy and Consumer Psyche



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

• Phishing



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

• Privacy Issues



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Legislations and Organizations

• The Economic and Social Council of the United Nations - model guidelines on consumer protection

• Consumers International, an international consumer rights organization, Economic Cooperation and Development, International Chamber of Commerce and International Consumer Protection and Enforcement Network.

• CAG (Citizen Consumer and Civic Action Group) - whether websites are consumer friendly - adequate laws and redressal mechanisms in India to protect e-consumers

• Information Technology Act, 2000 - recognition to online purchases• Reserve Bank of India - issues various circulars regarding online banking and

money transfer activities• Consumer Protection Bill - proposes to replace the Consumer Protection Act 1986 and incorporate e-

commerce- widen the ambit and modernize the law on consumer protection- target those aspects of e-commerce business - unethical and misleading to

consumers



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

Solutions

• Consumers to be constantly vigilant • Get information about the company• Keep your personal information private• Shop only with known e-merchants• Review your monthly bank and credit card• Inform yourselves about new laws and organizations you

can approach for help • Set up a strong virus protection• Educate yourselves about the basics of how cyber space

works• Be aware of the types of cyber crimes and cyber criminals



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

In Conclusion…

• Let the buyer beware!



Tel: +91 - 44 - 24984821



Bangalore - 560 001.Tel: +91 - 80 - 65462400


Coimbatore – 641018.Tel: +91 - 422 - 6552921






Tel: +91 - 484 - 6506216

EMAIL

[email protected]

WEBSITE

www.altacit.com

THANK YOU

e consumer – challenges and hurdles

Law