Pralhad Joshi: Gaining customers’ trust vital for ecommerce: Pralhad Joshi

Gaining the trust and confidence of consumers is crucial for India’s ecommerce sector, consumer affairs minister Pralhad Joshi said on Tuesday, while cautioning that its rapid expansion is accompanied by various risks.

“The future of ecommerce in India is bright, inclusive and transformative. While this digital revolution offers incredible opportunities, our government believes it is equally important for consumers to feel confident and make informed choices. Gaining the trust and confidence of consumers is crucial for ecommerce platforms,” Joshi said at Amazon’s flagship annual summit, Amazon Smbhav.

“Online platforms are now required to provide accurate product details, transparent pricing, disclose the country of origin, and ensure clear return and refund policies while maintaining product quality,” he said, emphasising that platforms often attempt to promote a particular brand.

Earlier, the CCI investigated the marketplaces’ alleged preferences for a small number of large sellers to ascertain whether they have been providing a level-playing field to all.

On November 18, ET reported that the Directorate of Enforcement (ED) started investigating whether arrangements between Amazon and Flipkart, and their vendors, violated foreign direct investment (FDI) norms.

The move was aimed at finding if ecommerce companies were exercising control over vendors. Under the rules, they can only act as platforms.

Joshi listed out various initiatives implemented by the government to create a trusted and safe ecommerce environment.“The National Consumer Helpline serves as an integrated grievance redressal mechanism, bringing all stakeholders together on a single platform,” he said.

The Consumer Protection Act 2019 has been enacted to address unfair contracts, enforce stricter regulations, and enhance ecommerce protections.

According to Joshi, India is the first country to set standards aimed at protecting consumers from fake reviews.

“Our government has issued guidelines to prevent misleading advertisements and endorsements and has taken action against ecommerce companies and sellers for violations, including misleading environmental claims in the form of greenwashing,” he said.

The government has also issued guidelines to regulate dark patterns and protect consumers from exploitation, he added.