Protection of Consumers in the digital marketplace

Protection of Consumers in the digital marketplace 

Author:  Chinni Poojitha, 5/5 BBA- LLB, Department of Law, Koneru Lakshmaiah Education Foundation, Vaddeswaram, Guntur, Andhra Pradesh, 522502.

Introduction 

It's quite fascinating to see that as of 2023, 64.6 percent of the global population uses the internet. With the rise of technology, businesses have found ways to channel their products through different channels like websites, mobile devices, social media platforms, and others. This process is called digital marketing, which means buying and selling goods and services online. Digital marketing has undergone transformation due to people using the internet and smartphones. It is also very affordable and flexible when compared to traditional marketing. In India, factors like smartphones and mobile data have led to the rise of the digital market, which has created many business opportunities to connect with potential customers and target the right ones. E-commerce platforms like Flipkart and Amazon have proven to be highly effective in reaching and engaging with customers through the Internet. These platforms provide a convenient and seamless shopping experience for consumers, while also providing businesses with a powerful tool for expanding their reach and increasing sales. Moreover, social media platforms like Instagram, YouTube, and Facebook have become advertising platforms to attract and connect with customers. Influencers in social media platforms are becoming the key tool of the business industries to attract customers. 

Evolution of digital marketing in India 

The inception of digital marketing can be traced back to 1990, when the first search engine, Archie query form, was developed. This innovative tool enabled individuals to easily access information pertaining to businesses. In 1993, AT&T launched the first banner ad on the popular website, hotwired.com, which proved to be a game changer for the advertising industry. This advertisement received a significant number of clicks, further highlighting the potential of digital marketing. The following year, a directory website named Jerry & Dave's Guide to the World Wide Web was launched, which received an impressive one million hits within its first year. The website was eventually renamed Yahoo.com. Subsequently, Google was launched in 1998, followed by Blogger in 1999, and social networking sites such as Space and Facebook. The advent of Web 2.0 allowed for user interactions with other users and businesses, thereby increasing the popularity of Internet advertising and marketing. 

Challenges that consumers face during online transactions. 

1. Quality of the product 

E-commerce platforms have been struggling with the issue of inaccurate product quality for quite some time now. The major reason behind this problem is fraudulent sellers selling low-quality or false products to unsuspecting customers. This not only causes a loss of trust but also creates a sense of dissatisfaction among customers who expect high-quality products.

2. Data privacy and security concerns 

In today's world, it is almost impossible to avoid sharing personal and financial information with e-commerce platforms. This information typically includes sensitive details such as one's name, address, date of birth, bank account details, as well as debit and credit card numbers. While this information is crucial for the completion of online transactions, it unfortunately also puts customers at risk of losing their financial assets and having their privacy violated. 

3. Misleading advertisements 

Deceptive advertising is a reprehensible practice that e-commerce platforms engage in by presenting a distorted image of products. They misrepresent their quality, origin, features, and even brand identity. In some instances, these platforms may go as far as posting fraudulent reviews and declining requests for item returns or replacements, which can lead to significant monetary and temporal losses for consumers.

4. Complexities in the refund 

As someone who regularly uses e-commerce platforms, I understand firsthand the difficulties associated with getting a refund. The numerous technicalities and processes involved can make it quite challenging for customers to receive their money back. Recently, my siblings and I had a similar experience when we booked movie tickets online through BookMyShow. Unfortunately, my brother was underage and we were not allowed to watch the movie. The movie hall stakeholders promised to refund our money, but it has now been over a week and I still have not received my refund. 

Conclusion 

In conclusion, I feel like in the case of consumer protection in e-commerce specific law is needed to deal with these online transactions. It is high time that the government takes a serious look at this issue and comes up with concrete regulations that protect consumers from unscrupulous online vendors. On the other hand, the implementation of technology such as AI can lead to resolving these issues and safeguarding consumer rights. AI-powered systems can help detect fraudulent transactions, identify potential scams, and alert consumers before they fall victim. Overall, it is crucial that we strike a balance between regulation and technology to ensure that consumers are protected in the rapidly evolving digital marketplace.