A Critical Analysis of Consumer Protection in Social Media Selling with Reference to Information Disclosures

Abstract

Technology advancements in digitization have revolutionized the business model from a mere market place to market space. E-commerce has grown by leaps and bounds. With its ubiquitous reach, the architecture of electronic commerce provides a dynamic and collaborative platform to business and consumers. This has resulted in increased competition and lower prices. Consumers get to choose from a whole range of goods and services across the world, from anywhere and at any time. Businesses are constantly innovating new technologies in order to adapt to new and evolving challenges in the area of e-commerce. One of the main drivers underlying e-commerce growth is the rise in number of individuals using information and communication technology (ICT) as a platform to trade. The Organization for Economic Co-operation and Development (OECD), in its Guidelines for Consumer Protection in the Context of Electronic Commerce adopted in 1999, rightly identified e-commerce as being ‘inherently international in nature’. This paper attempts to examine the authenticity and adequacy of information provided by websites with regard to information pertaining to locational details, pricing, return and refund policies, delivery details, and so on. The paper also attempts to examine the existing legal framework in the Indian context with respect to information provided by online portals to their customers. Inference is also drawn from some of the international best practices of upholding consumer trust and confidence in online shopping.