CONTENTS

DECLARATION OF THE CANDIDATE II

RESEARCH SUPERVISOR’S CERTIFICATE III
ACKNOWLEDGEMENTS IV
LIST OF TABLES VI
LIST OF FIGURES VIII
LIST OF ABBREVIATIONS X
LIST OF CASES XIV
CONTENTS XVII
ABSTRACT XXXI

Chapter 1
Introduction
1.1 Introduction 2
1.2 Statement of Research Problem 3
1.3 Literature Review 3
1.4 Scope of the Research 4
1.5 Hypotheses of the Research 5
1.6 Objective of Research 5
1.7 Research Methodology 6
1.8 Limitation of the Research 7
1.9 Scheme of Chapters 7
1.10 Concepts and Definitions 8
1.10.1 Consumer 8
Analysis of the Definition 9
1.10.2 Deficiency 11
1.10.3 Defect 12
1.10.4 Consumerism 12
Scope of Consumerism 13
Causes of Consumerism 14

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1.11 Introduction to Information Technology 16
1.11.1 Information Technology: Nature and Scope 18
[Link] Digital Computers 19
[Link] The Internet 21
1.11.2 E-Commerce 22
[Link] Definitions of e-Commerce 24
[Link] Nature and Scope of e-Commerce 26
[Link] Internet E-Commerce 33
[Link] Types of e-Commerce 36
[Link] Advantages & Limitations of E-Commerce 42
1.11.3 Consumers in the Emerging World of E-Commerce 46
1.12 Conclusion 46

Chapter 2
Historical Evolution of Consumer Protection and E-Commerce
2.1 Introduction 50
2.2 Origin, Growth, and Evolution of Consumer Protection in India 50
2.2.1 Ancient Period 51
[Link] Manusmriti (800 BC – 600 BC) 52
[Link] Kautilya’s Arthshashtra (400 BC – 300 BC) 52
[Link] Yagnavalkyasmriti (300 BC – 100 BC) 53
[Link] Naradasmriti (100 AD – 200 AD) 54
[Link] Brihaspati Smriti (200 AD – 400 AD) 54
[Link] Katyayanasmriti 54
[Link] Vishnusenasmriti 54
[Link]. Agni Purana 54
2.2.2 Medieval Period 55
2.2.3 Modern Period 56
[Link] Pre-Independence Period 56
i. Indian Penal Code, 1860 56
ii. Indian Contract Act, 1872 58

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 iii. Sale of Goods Act, 1930 59
iv. Law of Torts 60
v. Agricultural Products (Grading & Marking) Act, 1937 62
vi. Drugs & Cosmetics Act, 1940 62
[Link] Post-Independence 62
i. Constitutional Mandate & Consumer Protection 63
i. The Drugs (Control) Act, 1950 64
ii. The Industries (Development and Regulation) Act, 1951 64
iii. The Indian Standards Institution (Certification Marks) Act,
64
1952
ii. Prevention of Food Adulteration Act, 1954 65
iii. The Essential Commodities Act, 1954 66
iv. The Monopolies and Restrictive Trade Practices Act, 1969 66
vii. The Code of Criminal Procedure, 1973 67
viii. The Cigarettes (Regulation of Production, Supply &
67
Distribution) Act, 1975
v. The Standards of Weights and Measures Act, 1976 67
x. Competition Act, 2002 68
xi. The Food Safety and Standards Act, 2006 68
xii. Legal Metrology Act, 2009 69
2.3 Origin, Growth and Evolution of Consumer Movement at
70
International Level
2.3.1 The United States of America 71
2.3.2 Great Britain 74
2.4 Consumer Movement 76
2.4.1 Development of Consumer Cooperatives 77
2.4.2 Phase II 77
2.4.3 Phase III 78
2.4.4 Consumer Movement in Modern Period 78
2.5 Evolution of Internet 80
2.5.1 Emergence of Cyber Space 81

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 2.5.2 History of e-Commerce 83
2.6 Conclusion 85

Chapter 3
Analysis of National Legal Framework of Consumer Protection & E-
Commerce
I. Consumer Protection Act – 1986 & 2019 95
3.1 Objective of the Act 96
3.2 Concepts & Definitions 97
3.2.1 Consumer 97
3.2.2 Goods & Services 100
3.2.3 Defects & Deficiencies 101
3.2.4 Unfair Trade Practices 103
3.2.5 Restrictive Trade Practices 107
3.2.6 Misleading Advertisements 108
3.3 Salient Features of the Act 20 111
3.3.1 Betterment and Interests of the Consumers 111
3.3.2 Consumer Rights under the Act 111
3.3.3 Institutions under the Act 113
[Link] Consumer Protection Councils 113
[Link] Consumer Dispute Redressal Mechanism 115
[Link].1 Jurisdiction 116
[Link].1.1 Pecuniary Jurisdiction 116
[Link].1.2 Territorial Jurisdiction 119
[Link].1.3 Appellate Jurisdiction 120
[Link].1.4 Revisional Jurisdiction 121
[Link].2 Composition and Qualifications 122
[Link].3 Complaint Mechanism 124
[Link].4 Reliefs Available 124
[Link].5 Penalties 125
[Link] Central Consumer Protection Authority 126

XX
 3.3.4 COPRA: A Special Law & Additional Remedy 128
3.3.5 Inexpensive, Time-Bound & Quick Reliefs 129
3.3.6 Non-applicability of Doctrine of Privity of Contract 130
3.3.7 Limitation Period 130
3.3.8 Dismissal of False & Frivolous Complaints 131
3.3.9 Power to Review its Own Decisions 132
3.3.10 Consumer Protection Act, 2019 133
[Link] Product Liability 133
[Link] Unfair Contract 136
[Link] E-Commerce 137
[Link] Mediation 138
II. Information Technology Act, 2000 138
3.4 Introduction 138
3.5 Need of the Information Technology Act, 2000 140
3.6 Salient Features of the Information Technology Act, 2000 141
3.7 The Information Technology (Amendment) Act, 2008: Statement of
142
Objectives and Reasons
3.8 Legal Control Mechanism under the Information Technology Act,
144
2000 (2008) to combat Cyber Frauds
3.8.1 Controlling Authorities 144
3.8.2 Certifying Authorities 145
3.9 Concerns for Protection of Online Consumer: A Detailed Analysis of
procedural provisions under the Consumer Protection Act, 1986 and the 146
Information Technology Act, 2000 (2008)
3.10 Critical Analysis of the Information Technology Act, 2000 (The
150
Information Technology (Amendment) Act, 2008
3.10.1 Lack of regulation of e-Commerce websites in Indian Cyber
150
market
3.10.2 Absence of Consumer Protection and Compensatory
152
provisions to online consumers in e-Commerce laws of India
3.10.3 Growth of e-Commerce without effective e-Commercial 153
Legal Mechanism (e- Justice) is a distant dream

XXI
III. Emerging Issues 156
3.11 Legal Validity of E-Contracts 156
3.11.1 Introduction 156
3.11.2 Formation of Offline Contracts 157
3.11.3 Formation of Contracts in Cyber Space: Online Contracts 160
[Link] E-Contracting through e-Mail 163
[Link] E-Contracts formed through World Wide Web
164
(WWW)
[Link] E-Contract by Click-Wrap Agreements 165
[Link] E-Contracts by Shrink Wrap Agreements 166
3.11.4 Incidental Problems with Legality of Online Contracts in India 167
[Link] E-Offer and e-Acceptance in Online Contract 167
[Link] Invitation to Offer in e-Contracts 171
[Link] Consideration in e-Contracts 172
[Link] Capacity of Parties in e-Contract 173
[Link] Flaw in Consent of Parties in e-Contract 173
[Link] Degree of Uncertainty 178
[Link] Identity of Parties 178
3.11.5 Authentication of E-Contracts in Online Shopping: A
Comparative Analysis Under UNCITRAL Model Law 1996, the IT 180
Act 2000 (Amended 2008), and the Indian Contract Act 1872
3.11.6 Jurisdiction in e-Contracts 190
3.11.7 Consumers in e-Contracts: An Actual Situation (Weak
194
Position)
3.11.8 Conclusion 94 196
3.12 Online Banking in E-Commerce 196
3.12.1 Introduction 196
3.12.2 Changing Scenario of Payment Mechanism 198
3.12.3 Need of e-Banking in E-Commerce 200
3.12.4 Payment Mechanisms in e-Commerce 201
[Link] Credits Cards 202

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 [Link] Debit Cards 203
[Link] Smart Cards 204
[Link] Automated Teller Machine (ATM) Cards 205
[Link] E-Money 205
[Link] Internet Banking 208
[Link] Cash 208
[Link] Cryptocurrencies 209
3.12.5 Frauds in Online Payment of E-Commerce Transactions 209
[Link] Credit Card Frauds 210
[Link] Phishing 212
[Link] Spoofing 213
[Link] ATM Frauds 214
[Link] Unwanted Program-Adware, Spyware, Browser
215
Parasites
[Link] Hacking and Cybervandalism 216
[Link] Malicious Code: Worms, Trojan Horses and Bots 217
[Link] Salami Attacks 218
3.12.6 Legislative Approach to Combat Frauds in e-Banking
220
Transactions in India
[Link] Influence of International Instruments on Indian Law 220
[Link] Negotiable Instruments Act, 1881 222
[Link] The Payment and Settlement Systems Act, 2007 222
[Link] The Information Technology Act, 2000 and IT
223
(Amendment) Act, 2008
3.12.7 Conclusion 226
3.13 Data Protection and Online Privacy of Consumers 226
3.13.1 Introduction 226
3.13.2 Privacy 227
3.13.3 Consumer Privacy in E-Commerce 228
[Link] Behavioural Advertising 229
[Link] Spyware 230

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 [Link] Identity Management 231
[Link] Breach in Data Security 232
3.13.4 Reasons for Violation of Privacy in E-Commerce 233
3.13.5 Examples of Breach of Consumer Online Privacy 234
3.13.6 National Legislative Framework 236
[Link] Information Technology Act, 2000 236
[Link] The Information Technology (Procedure and
Safeguards for Blocking for Access of Information by Public) 239
Rules, 2009
[Link] The Information Technology (Procedure and
Safeguards for Monitoring and Collecting Traffic Data or 240
Information) Rules, 2009
[Link] The Information Technology (Reasonable Security
Practices and Procedures and Sensitive Personal Data or 241
Information) Rules, 2011
[Link] Consumer Protection Act, 2019 242
[Link] Digital Personal Data Protection Act, 2023 242
3.14 Fake Reviews and Misleading Advertisements 245
3.14.1 Introduction 245
3.14.2 Fake Reviews and Consumer Protection 248
3.14.3 Fake Reviews Identification Techniques 250
3.14.4 Law Governing Misleading Advertisements and Fake Reviews
251
in India
[Link] Consumer Protection Act, 2019 251
[Link] Information Technology (Intermediary Guidelines and
252
Digital Media Ethics Code) Rules, 2021
[Link] Advertising Standards Council of India (ASCI) 252
[Link] Consumer Protection (E-commerce) Rules, 2020 256
[Link] Guidelines for Prevention of Misleading
Advertisements and Endorsements for Misleading 257
Advertisements, 2022

XXIV
 [Link] The Guidelines for Prevention and Regulation of Dark
260
Patterns, 2023
[Link] Indian Standard (IS) 19000:2022 - ‘Online Consumer
Reviews — Principles and Requirements for their Collection, 263
Moderation and Publication
3.15 Intermediary Liability and Consumer Protection 268
3.15.1 Introduction 268
3.15.2 Meaning of Intermediary & Internet Intermediary 268
3.15.3 Information Technology Act, 2000 270
3.15.4 Consumer Protection (E-Commerce) Rules, 2020 272
[Link] Various E-Commerce Models 272
[Link] Applicability 273
[Link] Duties of an E-Commerce Entity under the Rules 273
[Link] Liabilities of a Marketplace E-Commerce Entity under
274
the Rules
[Link] Duties of a Seller on Marketplace E-Commerce Entity 275
3.15.5 Issues and Challenges with regards to Intermediary Liability
276
and Consumer Protection
3.15.6 Draft Amendments to the Consumer Protection (E-Commerce)
277
Rules, 2020
[Link] Key Features 277
[Link] Key Issues 284
3.16 Online Dispute Resolution and Consumer Protection 290
3.16.1 Introduction 290
3.16.2 Definition and Scope of ODR 290
3.16.3 Historical Development of ODR 292
[Link] 1st Phase: eBay’s Experiment Leads the Way 293
[Link] 2nd Phase: Growth of the ODR Start-ups 294
[Link] 3rd Phase: Government and Judiciary Adoption 294
3.16.4 Conceptual Framework of ODR 296
3.16.5 Prospects and Opportunities of ODR 298
3.16.6 Legal and Regulatory Framework 302

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 [Link] Arbitration and Conciliation Act, 1996 302
[Link] Consumer Protection Act, 2019 303
[Link] The Mediation Act, 2023 304
3.16.7 Government Departments and Ministries Initiatives towards
305
Adoption of ODR
[Link] Initiatives by the Department of Consumer Affairs 305
[Link] Initiative by Department of Justice 306
[Link] E-courts Mission Mode Project 306
[Link] Draft National E-Commerce Policy 307
[Link] RBI’s ODR Policy on Digital Payments 308
3.16.8 Challenges of ODR in India 308
[Link] Structural Challenges 309
[Link] Behavioural Challenges 310
[Link] Operational Challenges 312

Chapter 4
Analysis of International Legal Framework Law of Consumer Protection and
E-Commerce
4.1 Introduction 317
4.2 International Instruments 317
4.2.1 United Nations Framework 317
[Link] United Nations Guidelines on Consumer Protection 317
[Link] UNCITRAL Model Law on E-Commerce, 1996 321
[Link] United Nations Convention on the Use of Electronic
322
Communications in International Contracts, 2005
[Link] United Nations Convention on Contracts for
323
International Sale of Goods
[Link] UNCITRAL Model Law on Electronic Signatures, 2001 325
4.2.2. Organisation for Economic Co-operation and Development
326
(OECD) Guidelines

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 [Link] Organisation for Economic Co-operation and
326
Development (OECD) Guidelines
[Link] OECD Recommendations on Consumer Protection in E-
331
Commerce, 2016
4.2.3 European Union (EU) Regulatory Framework 332
[Link] European Union (EU) Directives 332
[Link].1 EU Directive 97/7/EC on Distance Selling 333
[Link].2 Impact Assessment of Directives on Consumer
335
Protection
[Link].3 The New EU Directive on Consumer Rights
336
(2011/83/EU)
[Link].4 EU Directive on Electronic Commerce (2000/31/EC) 339
[Link].5 General Data Protection Regulation 340
[Link] The Council of Europe Convention for the Protection of
Individuals with Regard to Automatic Processing of Personal 345
Data (Convention 108)
4.3 Role of International Organizations in Consumer Protection 347
4.3.1 World Trade Organisation 347
4.3.2 International Consumer Networks 348
[Link] Consumer International 348
[Link] International Consumer Protection and Enforcement
350
Network (ICPEN)
4.3.3 International Organisation for Standardisation (ISO) and
351
International Electrotechnical Commission (IEC)
4.4 Regional and Cross-Border E-Commerce Consumer Protection
355
Initiatives
4.4.1 Asia Pacific Region 355
[Link] Association of Southeast Asian Nations (ASEAN) 355
[Link] Asia-Pacific Economic Co-operation (APEC) Electronic
358
Commerce Steering Group

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 [Link] The Asia-Pacific Economic Cooperation (APEC)
360
Privacy Framework
4.5 Comparative Analysis: Domestic E-Commerce Consumer Protection
362
Laws in Selected Countries
4.5.1 Consumer Protection in E-Commerce in United States 362
4.5.2 The California Consumer Privacy Act, 2018 (CCPA) 366
4.5.3 Consumer Protection in E-Commerce in United Kingdom 367
4.5.4 The Personal Information Protection and Electronic Documents
372
Act, 2000 (PIPEDA)
4.5.5 Consumer Protection in E-Commerce in Singapore 374
4.6 International Best Practice regarding ODR 376
4.6.1 EU Regulation on Online Dispute Resolution 376
4.6.2 Technical Notes on Online Dispute Resolution, 2016 379
4.6.3 International Best Practices regarding ODR 380

Chapter 5
Judicial Approach to Consumer Protection
and E-Commerce
5.1 Introduction 398
5.2 Judicial Approach towards Consumer Protection in E-Commerce 399
5.3 Conclusion 444

Chapter 6
Data Analysis and Interpretation
Data Analysis and Interpretation 445

Chapter 7
Conclusions and Suggestions
7.1 Introduction 520
7.2 Chapter Summary 520
7.3 Findings of the Study 527

XXVIII
7.4 Testing of Hypotheses 537
7.5 Recommendations 537
7.5.1 Policy Recommendations 538
7.5.2 Practical Recommendations 543
7.5.3 Future Research Recommendations 547
7.6 Conclusion 548

Annexures 549

XXIX