E-com Website Liable for “Country of Origin”

The District Consumer Disputes Redressal Commission of Hyderabad has taken a welcome step toward strengthening consumer protection in India by requiring the e-commerce platform to disclose information about the product’s “country of origin” of the product that is sold on the platform so that customers can make an informed decision. The Consumer Protection (E-Commerce) Rules, 2020’s Rule 6(5)(d) requires that information about the products’ country of origin be provided. As a result, in the current instance, the consumer forum ordered Uni One India Pvt. Ltd. and the e-commerce portal Paytm to compensate complainant Advocate Akash Kumar for the aforementioned rule’s infringement with Rs. 15,000.

The factual matrix of the case was that the complainant had purchased a sewing machine of the brand “Usha” through Paytm for Rs. 13,440. When the package was delivered, it was found that the country of origin was Thailand. If the complainant had knowledge about it on the portal, he wouldn’t have purchased it in the first place. Paytm, on the other hand, claimed that it is an intermediary online market place that facilitates sales transactions between sellers and buyers, and that if buyers want to know the country of origin, they can ask the manufacturer. Additionally, the plaintiff suffered no mental injury, agony, or trauma in the traditional sense.

On hearing both sides, the consumer forum came to the conclusion that not providing the information regarding country of origin amounts to a clear violation of the E-Commerce Rules, 2020. Not providing the same is nothing but a deceptive practice which distorts consumer choice. The forum further went on to observe that with a paradigm shift in the liability of online traders and considerable changes in the shopping habits of consumers, they should be directly and vicariously liable for any damage caused by the vendor to the customer.