Consumers complaints related to e-commerce record 300% hike in last 5 years, UP tops the list
In the past several years, there has been an increase in consumer complaints regarding the e-commerce industry. Over the past five years, there has been a significant increase in complaints overall of over 300%. As per the latest data issued by the Department of Consumer Affairs, the total number of complaints received on the National Consumer Helpline during 2017-18 was 59,402, which increased to 1,57,574 in 2020-21 and 1,83,851 in 2021-22.
Uttar Pradesh topped the list of states having a maximum of 25,484 complaints in the e-commerce sector, followed by Maharashtra at 18,799 and Rajasthan at 15,620 in 2021-22.
An analysis of the information on e-commerce-related complaints revealed that only five states—Uttar Pradesh, Maharashtra, Delhi, Rajasthan, and Bihar—accounted for approximately 50% of all complaints.
The e-commerce industry has grown quickly as a result of the rapid expansion of the digital economy, which was further sped up by demands brought on by the Covid-19 pandemic.
As per an Indian Brand Equity Foundation (IBEF) report published in November 2021, the Indian e-commerce market is expected to grow from $46.2 billion in 2020 to $111.40 billion by 2025 and is further projected to attain the value of $200 billion by 2026.
These online stores provide products to customers at heavy discounts and provide conveniences like doorstep delivery and return services to increase customer happiness. The growth is not, however, without consumer-related issues.
The Consumer Protection (E-commerce) Rules, 2020, which were announced in accordance with the terms of the Consumer Protection Act, 2019, are meant to address consumer-related issues and protect customers from unfair business practices.
According to the Legal Metrology (Packaged Commodities) Rules 2011 adopted under the Legal Metrology Act of 2009, an e-commerce entity is required to make sure that information such as the name and address of the manufacturer, packer, or importer, the maximum retail price (MRP), the country of origin, the common or generic name of the commodity, the net quantity, the month and year of manufacture, customer care information, etc. are displayed on the digital and electronic network used for e-commerce transactions.
This is done to make sure that the consumer is making an informed choice based on the product’s description on the e-commerce site.
