A Study On Effectiveness of Consumer Protection Regulations For E-Commerce in Raipur
A Study On Effectiveness of Consumer Protection Regulations For E-Commerce in Raipur
Raipur
Anusha Paliwala, Anmol Siddhib
a
Student of B.B.A, Faculty of Management Studies, The ICFAI University, Raipur, [email protected]
b
Student of B.B.A, Faculty of Management Studies, The ICFAI University, Raipur, [email protected]
keywords Abstract
E-commerce The growth of e-commerce as a marketplace has fairly become one of the most influential trends of
Consumer Awareness recent years that innovatively changed the way consumers interact with products and services.
Consumer Trust However, this growth has itself brought about major issues as to the rights of the consumers and more
Consumer Protection specifically their protection, in this digital marketplace. As online stores become popular the role of
Fraudulent Activities consumer protection legislation is significant to protect consumers from fraudulent, misleading
information, and unfair activity. This study looks into the extent of knowledge about consumer
protection laws, especially amongst e-commerce users, and its association between such legislation
and the levels of trust in Raipur city. Participants are randomly selected through a stratified random
sampling technique that divides volunteers according to demographics including, age, gender, and
internet shopping behavior. Despite this the level of knowledge regarding the laws offers consumers
different levels of protection as depicted in the following findings; The findings show that the level
of awareness of consumer rights is statistically significantly related to the level of confidence in
acquiring goods through online stores. Therefore, increasing the awareness of consumers may
increase the level of confidence in electronic shopping while a low awareness can inhibit some
consumers from engaging in e-business activities. This research emphasizes that consumer protection
legislation is crucial in the creation of a secure and truthful market in cyberspace.
1. Introduction
One of the biggest trends in recent years has been the rapid name a few have increased. As it is, consumers are exposed
expansion of E-commerce as a dominant ‘marketplace’ for to a vast array of risks here, such as identity theft, lying
a huge number, and variety, of products and services, with product descriptions or poor customer support, which can
consumers now being remarkably keen to engage with severely damage their shopping experience and these
these, wherever and whenever they want. It’s not just platform’s trust. As a result of these challenges, consumer
changed the way we shop, but also increased our protection legislation can be said to become increasingly
dependence on online platforms to complete a range of important. This legislation is necessary to shield consumers
purchases from retail to service subscription. This means, from any kind of fraudulent activities, protect them from
that consumers are now more comfortable than ever, being any kind of mistreatment and unfair practice that might take
able to browse, compare and purchase goods at any time of advantage of their vulnerabilities in online environment,
day without even leaving the house. At the same time, and provide consumers through adequate information while
however, the extraordinary expansion of e-commerce has they are procuring products. In the era of online retailing
also created serious concerns about consumer rights and gaining higher prevalence, it is highly essential for
their safeguard in this digital world. With the growing trend regulatory frameworks to adopt and further strengthen
of people shopping through online for everything including consumer rights directed measures that would guarantee
their favorite food, the possibility of fraudulent activities, safety and fairness on the e retailing environment
misinformation on advertising and unethical businesses to
2.Literature Review lessening of costs, but on the other hand these very same
risks present major challenges for both the consumer and
the merchant. The paper further demonstrates that
Chawla, N. and Kumar, B., 2022. E-commerce and stakeholders in the digital marketplace need strong legal
consumer protection in India: the emerging trend. Journal
of Business Ethics, 180(2), pp.581-604.
Provided a Primary research regarding the protection of frameworks and compliance measures. It also looks at the
online consumer in India with special reference to recent problems of governing virtual worlds like Second Life, for
laws and e-commerce. Especially in the light of emerging which traditional laws have yet to be worked out. The paper
legislations in India: The Consumer Protection Act, 2019 ends by stressing the need of moral, social and ethical
and The Consumer Protection (E-commerce) Rules, 2020. responsibilities of the digital verse.
This research addresses the research questions and aims
Pandey, A., 2021. Consumer protection in the era of e-
through a review of the literature and a survey of 290 online
commerce: Issues and challenges. Inter J Leg Sci Innov
consumers. The work revealed that the Indian e-commerce
firms must apply stringent security measures, credible and Due to e-commerce and globalized trade consumer law is
clear information, and quality customer relations as ways of currently encountering a number of issues. The emergence
creating trust with the online consumers. COD came out as of new problems in purchasing goods and services through
the most widely used payment methods among the shoppers the Internet is possible to be attributed to such questions as
from India. As a primary objective of the study, it calls for false advertisements, products failure or even their
more legal measures to facilitate the expansion of electronic complete non-return, fake shipments, payment problems or
commerce in the country of India. Based on the findings of their opposite, security and privacy violations, use of
the researchers, it can also be deemed greatly appropriate unilateral contract. Although most countries have national
and promising that the e-commerce in India is also protection laws as a framework for solving these issues, the
experiencing rapid growth accompanied by a proper legal laws do not afford consumers sufficient protection because
environment and adequate consumer protection of several reasons such as poor enforcement and conflicting
mechanism. jurisdictions. Thus, objectives of the paper is to identify the
Shaik, D. and Poojasree, M.V., 2021, May. Consumer gaps in the ability of current national laws to respond to the
Protection in E-Commerce: A Legal and Compliance novel features of commercial transactions that impact
Framework in the Digital Market. In 1st International consumers. It will examine the problems associated with the
Conference on Law and Human Rights 2020 (ICLHR e-contracts and undertake a cross-sectional review of laws
2020) (pp. 18-23). Atlantis Press. in various countries. The purpose is to offer
The research paper is about legal and security risks of e recommendations to adapt the current legislation of
commerce like privacy breaches, intellectual property electronic contracts to modern needs and challenges that
infringement, online piracy, spam and censorship. Here, on consumers face. Lastly, the paper asserts that there is then
the one hand, we have excellent opportunities in e- need to act at national and international level to improve
commerce with, for example, access to global markets and consumer protection in e-commerce.
3.Research Gap
• There is relatively little primary research concerning demographics, including age, gender, education, and
consumer awareness of e-commerce consumer income, regarding the efficacy of consumer
protection regulations in Raipur and hence little protection rules indicates that better consumer
corresponding data on how well these regulations are understanding is required when it comes to e-
conveyed and received by consumers. However, it is commerce. Various consumer segments might
important to assess the level of consumer knowledge perceive and feel impact of online shopping risks in
and the ability to use the law to protect their rights various ways; for example, newer generation is more
when engaging in activities in the e-commerce familiar with internet but they cannot fight for their
marketplace that is experiencing exponential growth. rights properly and on the other side elder people are
Subsequently, there are thorough understandings of more cautious but they feel threat as they are not well
consumers’ knowledge necessary for formulating versed with internet platforms and methods. The
different polices and for evaluating current level of education affects knowledge of consumers
protections provided by regulation and their rights and where people have more education, they
deficiency in specific aspects. Hence, it becomes are more likely to know of their protections.In the
imperative to undertake specific market research to same way the inequality in income will influence the
determine the consumers’ awareness and to contrive level of information and availability of resources that
the set of actions that would increase their share, will determine the levels of exposure or vulnerability
helping to work towards creating a safer and, of the consumers. By understanding these
therefore, more trust-oriented e-commerce demographic impacts, policy makers can then create
environment in Raipur. more specific segmentation measures within the
broader regulation of consumer protection, so as to
• There might be a lack of studies examining how the
better support these vulnerable customers.
findings vary across different consumers’
a) What is the level of awareness and understanding of a) To assess the awareness and understanding of
consumer protection regulations among E-commerce consumer protection regulations among E-commerce
consumers in Raipur? consumers in Raipur.
b) What is the relationship between consumer trust and b) To understand the relationship between consumer
consumer protection regulation among E-commerce trust and consumer protection regulation among E-
consumers in Raipur? commerce consumers in Raipur.
➢ Hypothesis Framing accuracy of obtained results because each stratum may be
homogeneous within it but different from other strata.
Two hypotheses (H1 and H2) have been formulated
to evaluate the relationship between the two
variables.
The research design was descriptive in nature, thus aimed
H1: There is a significant level of awareness and
at increasing the richness of the insights into the
understanding of consumer protection regulations phenomenon under consideration. To some extent, both
among E-commerce consumers in Raipur. primary and secondary data collection methods were used
to gather data in response to the research questions. To
H2: There is a significant positive relationship
obtain primary data, a structured questionnaire was
between consumer trust and consumer protection conducted to get direct information from the participants
regulations in E-commerce consumers in Raipur. regarding several issues pertaining to the study. This direct
approach made it easier in establishment of comprehensive
➢ Variables
and specific information from the participants and was just
Dependent Variable: Consumer Protection ripe with both qualitative and quantitative data.
Regulations
Independent Variable: Level of Awareness and Besides giving, primary data, secondary data was collected
Consumer Trust from research papers, websites and other source available
on Internet. This reason ensured a broad and expanded
accumulation of the material to be studied, as well as the
5.Research Methodology variety of information sources to confirm the findings.
6.Results
The questionnaire was filled up by 100 participants level of awareness is particularly high in urban areas
in the Raipur area and key findings revealed that the with graduates and literates and specifically low and
majority of the customers have moderate or moderate among the less qualified people along
significant awareness levels about the laws with the mixed experience about the shopping from
regarding consumer protection in e-commerce. The electronic media.
Section A: Demographic Information
Table-1
18-24 45
25-34 30
35-44 10
45-54 5
55 and above 5
GENDER
Male 45
Female 50
Other 5
OCCUPATION
Student 40
Employed 35
Unemployed 10
Retired 35
Other 10
Educational
Qualification
High School 40
Under Graduate 35
Post Graduate 10
Other 35
Section B: Ecommerce Usage
Table-2
FREQUENCY No. of
Respondents
(%)
Daily 10
Weekly 30
Monthly 25
Rarely 20
Never 15
E-
COMMERCE
PLATFORM
Amazon 40
Flipkart 30
Myntra 15
Nykaa 5
other 10
Section C: Awareness of Consumer Protection Regulations
Table-3
Yes 50
No 45
Other 5
Social media 30
News articles 25
Word of mouth 15
Government Policy 20
Other 10
1 (Not at all) 15
2 (Slightly) 20
3 (Moderately) 30
4 (Very well) 25
5 (Extremely well) 10
Section D: Experience with Consumer Protection in E-commerce
Table-4
Yes 50
No 45
Yes 40
No 60
Reported to a consumer 10
protection authority
Other 10
Very satisfied 20
Satisfied 30
Neutral 25
Dissatisfied 15
Very Dissatisfied 10
Yes 60
No 30
Unsure 10
Table-5
Yes 50
No 45
Other 5
1 (Not at all) 10
2 (Slightly) 15
3 (Moderately) 30
4 (Very well) 25
5 (Extremely well) 20
Yes 70
No 20
Unsure 10
HYPOTHESIS TESTING
Table-6
The demographic breakdown of the study show a good utilize other platforms. This picture suggest that the Indian
representation of the participants, the 18-24 age Bracket e-commerce market is highly competitive with only a few
contribute 45% which goes to show that young customers large players but with opportunities for the specialized and
The data suggested that online shopping in India exhibits a said they had no idea of their rights, 20% said that they
spectrum of engagement. Daily shoppers were limited to somewhat informed. The largest group, which was 30
10% of respondents, nevertheless 30% shop at least weekly, percent of participants, described their understanding as
and a further quarter shop at least monthly. This shows that moderate, while 25 percent responded strongly to questions
there is a good appreciation of e-commerce in the region, about their rights. But none of them reported to had an
where 65% of the consumers are buying products online for extremely through understanding of the guidelines set in the
at least once a month. Nevertheless, it remains possible to use of rails. Needless to say, this data raises the imperative
identify a significant part of respondents 35% of them who for improving consumer awareness efforts, especially with
never or only occasionally make purchases on the Net, and, those clients who are not aware or have little knowledge of
therefore, potential consumers. Regarding the choice of the their rights; increased awareness can make the populace
platform, there is a quite large popularity of Amazon with better placed to make an informed decision and also better
40% of the respondents, while 30% indicated Flipkart. placed to defend their rights.
Section D: Experience with Consumer Protection Out of the surveyed population, 40% did something to
in E-commerce(Table-4) correct the problem and 60% chose not to follow through.
The self-generated actions with the highest response were
The findings showed that there is a 50/50 chance of customer service 40% and filing a complaint to the e-
problems arising from online purchases together with 45% commerce platform 25%,10% reported to a consumer
protection agency, and 15% placed reviews or complaints those sites which encourage and follow consumer
online. Regarding satisfaction with the resolution obtained, protection standards, meaning companies can benefit from
20% of respondents were very satisfied, 30% satisfied, increased consumer trust through transparency. In sum, the
while 25% were indifferent; 15% were dissatisfied, and results reported here call for improved awareness and
10% very dissatisfied and thus management needs to understanding of consumer protection rules to improve
consider about the customer service and strategic resolution consumers’ confidence in e-commerce platform.
methods. As for trusting e-commerce platform to defend
consumer rights, 60% of the respondents said they trusted,
30% said that they did not trust, and 10% were still Interpretation (Table-6)
doubting. These results suggest the paper’s priority tasks of
improving the resolution processes and consumer H1 Interpretation: R value of 0.65 is significant and show
awareness, as well as strengthening confidence in e- that positive, this implies that as awareness and
business as a possible way to improve the security of online understanding of the consumer protect regulation increase
Section E: Experience with Consumer Protection E-commerce consumers are actually informed about their
rights. This also means that the consumers in Raipur have a
in E-commerce(Table-5)
good knowledge of the current legislation concerning
The survey findings show that there is a bipolar attitude consumer protection in the e-commerce sector.
towards the current laws that seek to protect rights in e-
H2 Interpretation: The correlation coefficient of R equals
commerce. Out of these respondents, 50% perceive these
0.75, which speaks about a higher positive link between
regulations as effective, 45% of them do not, meaning that
consumer trust and consumer protection regulations. This
consumers maintain distrust regarding the level of
suggests that as consumer awareness of their rights
protection offered by them. Additionally, when asked about
enhances so does the level of confidence, they have in E-
the influence of consumer protection regulations on their
commerce platforms. Hence, the significance level (p <
trust in e-commerce platforms, responses were varied:
0.001) confirms this relationship is highly significant
While 10% of respondents said that it had ‘’none’’ effect on
enhancing the adoption of consumer protection regulations
their trust, 25% said it influenced it ‘’very well’’ and 20%
in the E-commerce sector. More so, it has pointed out that
said it influenced it ‘’extremely well’’. This means that
high levels of consumer protection regulations lead to high
while, there are consumers who may consider these
levels of consumer trust in the E-commerce sector. The
regulations as positive and supportive, other consumers
positive association implies that appropriate regulations
may not see the regulations as a powerful agenda for
that protect consumers would improve consumer
creating trust. Moreover, for 7 of 10 users, it was
confidence in electronic commerce, Raipur.
determined that they would prefer to make purchases on
➢ RESEARCH LIMITATIONS
There can be a significant level for the respondents to increasing phenomenon of electronic commerce.
provide biased replies to some questions surviving the Thus, the rights and protection of consumers play a
social desirability bias whereby such questions are likely to significant role in particular, as the tendencies toward
attract over reported positive behavior and under reported the growth of the internet shopping increase and the role of
negative behavior. Besides, the sample size of 100 the digital market expands. It is evident from the key
respondents is also relatively small thus restraining the finding above that a significant relationship exists between
study from making a large confidence interval for the the level of awareness of the laws, on the one hand, and the
population of Raipur. The authors said that if the sample level of trust and confidence in e-commerce on the other
size was even larger, it would have enhanced the reliability hand, indeed, it is an indication that the consumer needs to
and solidity of the study, as well as making the conclusions be educated and empowered. In other words, when
about the view of online shopping in that region more consumers are aware of the consumer rights that exist it
conclusive. would be easy for them to transact with online stores or
platforms. On the other hand, the abstract says that when
➢ PRACTICAL IMPLICATIONS
consumer awareness is low, low consumer rights can
The study implies that there is need for the consumers to be become a ‘Threat’ that might limit some consumers from
very careful any times that they dealt with through online engaging in e-commerce. This means that educational
transactions. This paper has also established that consumers enlightenment on protection legislation is a strategy that
can indeed guard themselves against various risks could enhance protection of consumer rights and may be
concerning data breaches, identity theft, and the like, and used to propel the growth of the digital marketplace. In
some drawbacks of online marketplaces by being sensitive conclusion, the research asserts that adequate legislation for
to existing and potential problems. Likewise, based on these consumers protection is the key driver and essential for the
findings, e-commerce platforms can formulate or enhance development of a safer and more reliable e-commerce
corresponding services, for example, by strengthening market. By protecting the consumer from commit
security processes, introducing informative descriptions of fraudulent, misleading or unfair practices, policymakers
products, and formulating the settlement of disputes. and regulators are able to provide the necessary
Therefore, it can contribute to encouraging consumers to encouragement to grow the online commerce market. With
develop informed perceptions so that online shopping will the growth of e-Commerce and penetration of online
be safer and more trustworthy. markets deep into the fiber of our economy it will be
relevant to sustain an effective system of consumer
8.Conclusion protection. It dawned on this research that there is a need
The research acknowledges the role of consumer protection for increased awareness creation to increase user
legislation and consumer information within the confidence, trust, and participation in electronic commerce.
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A PP ENDIX -1
Questionnaire
❖ Section A: Demographic Information
1. What is your Age?
o 18-24
o 25-34
o 35-44
o 45-54
o 55 and above
2. What is your Gender?
o Male
o Female
o Other
3.What is your Occupation?
o Student
o Employed
o Unemployed
o Retired
o Other: ___________
4.What is your Educational Qualification?
o High School
o Undergraduate
o Postgraduate
o Other: ___________
8.If yes, how did you learn about these regulations? (Select all that apply)
o Social media
o News articles
o Word of mouth
o Government websites
o Other: ___________
9. On a scale of 1 to 5, how well do you understand your rights as a consumer in e-commerce transactions?
o 1 Not at all
o 2 Slightly
o 3 Moderately
o 4 Very well
o 5 Extremely well
11. If yes, did you take any action to resolve the issue?
o Yes
o No
12.Which of the following actions did you take?
o Contacted customer service
o Filed a complaint with the e-commerce platform
o Reported to a consumer protection authority
o Posted a review or complaint online
o Other: ___________
16. On a scale of 1 to 5, how much do consumer protection regulations influence your trust in e-commerce
platforms?
o 1 Not at al
o 2 Slightly
o 3 Moderately
o 4 Very much
o 5 Extremely
16. What improvements would you suggest to enhance consumer protection in e-commerce? (Open-ended)
18. Would you be more likely to shop on platforms that actively promote and adhere to consumer protection
regulations?
o Yes
o No
o Unsure