World Consumer Rights Day is celebrated annually on March 15th. It serves as a reminder of the importance of consumer rights and highlights the need for consumer protection around the globe. The day was first observed on March 15th, 1983, and since then, it has been recognized by consumer organizations and advocates worldwide. Each year, World Consumer Rights Day focuses on a specific theme or issue relevant to consumer rights and protection. The theme of World Consumer Rights Day 2024 is ‘Fair and Responsible AI for Consumers’.
Whether consumers truly hold the status of “kings” in every aspect of the marketplace is open to debate. Despite efforts to raise consumer awareness, many consumers in India are still unaware of their rights and the provisions of the Consumer Protection Act, 2019. The legal procedures involved in filing and pursuing consumer complaints can be complex and daunting for many consumers, especially those from marginalized or disadvantaged backgrounds. This complexity may act as a barrier to accessing justice and discourage consumers from seeking redressal.
Consumer protection laws in India are designed to safeguard the interests of consumers and ensure fair trade practices. The primary legislation governing consumer rights and protection in India is the Consumer Protection Act, 2019. This Act replaced the old Consumer Protection Act, 1986, and aims to provide better protection of the interests of consumers. The Act establishes the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce the rights of consumers. It also introduces provisions for product liability, unfair trade practices, e-commerce transactions, and mediation.
The Consumer Protection Act, 2019, enshrines various rights for consumers, including the right to safety, right to information, right to choose, right to be heard, right to seek redressal, and right to consumer education. Its enactment demonstrates the government’s commitment to strengthening consumer protection laws in India. The Act establishes consumer dispute redressal commissions at the district, state, and national levels to adjudicate consumer disputes. These forums provide a speedy and cost-effective mechanism for resolving consumer grievances.
The Act introduces provisions for product liability, holding manufacturers, sellers, and service providers liable for any harm caused to consumers due to defective products or deficient services. The Act prohibits unfair trade practices such as misleading advertisements, false representations, and deceptive practices. It empowers consumers to seek compensation for any loss or injury suffered due to such practices. The Act includes provisions specifically addressing e-commerce transactions, including the liability of online marketplaces, product descriptions, return policies, and consumer grievances related to online purchases.
Consumers have the right to approach civil courts to seek legal remedies for consumer disputes not resolved through consumer forums or other mechanisms. Courts play a crucial role in interpreting consumer protection laws and delivering justice to aggrieved consumers.
While the Consumer Protection Act (CPA) in India has been instrumental in safeguarding consumer rights and providing mechanisms for grievance redressal, it also has some drawbacks and limitations. One of the major drawbacks of the CPA is the significant delays in resolving consumer disputes. Consumer forums often face a backlog of cases, leading to prolonged waiting periods for consumers seeking redressal. This undermines the effectiveness of the Act in providing timely justice to aggrieved consumers. Consumer forums and regulatory bodies established under the CPA often face resource constraints, including inadequate staffing, infrastructure, and funding. These resource limitations hamper their ability to handle consumer complaints efficiently and may lead to inefficiencies in the dispute resolution process.
The rise of e-commerce and digital transactions has posed new challenges to consumer protection in India. The CPA has been amended to address these challenges, with provisions for regulating e-commerce transactions and holding online platforms accountable for consumer grievances. Overall, the evolution of consumer litigation in India reflects a growing emphasis on consumer rights and protection, supported by legislative reforms, judicial interventions, and increased consumer awareness.
“Fair and Responsible AI for Consumers” emphasizes the importance of ethical and equitable use of artificial intelligence (AI) technologies in serving consumer interests and protecting their rights. Fair and Responsible AI empowers consumers to make informed choices and assert their rights in the AI-driven marketplace. Providing consumers with transparency, control, and meaningful opportunities for engagement with AI technologies enhances their autonomy and agency in decision-making processes. Regulatory Frameworks: Governments and regulatory bodies play a crucial role in establishing and enforcing regulations that promote Fair and Responsible AI for Consumers. Regulatory frameworks should address issues such as data protection, algorithmic transparency, accountability, and consumer rights in the context of AI technologies.
By promoting Fair and Responsible AI for Consumers, businesses, policymakers, and other stakeholders can harness the potential of AI technologies to drive innovation, enhance consumer experiences, and create value while ensuring that consumer rights, interests, and well-being are safeguarded.
The need for changes to the Consumer Protection Act (CPA) depends on various factors, including evolving consumer needs, emerging market dynamics, and gaps or deficiencies in the existing legal framework. With the rapid advancement of technology and the proliferation of e-commerce, there may be a need to amend the CPA to address new challenges and provide specific regulations for online transactions, digital platforms, and data privacy. Consumer protection laws need to evolve to address emerging issues such as cybersecurity threats, fraudulent practices in the digital marketplace, and environmental sustainability concerns. Amendments to the CPA could incorporate provisions to tackle these challenges and protect consumer interests effectively.