The Consumer Affairs Authority (CAA) has taken a significant stride in protecting consumer rights by issuing a special gazette notification that aims to regulate the activities of online sellers and sellers operating on digital platforms. The directives outlined in the notification, announced by CAA Chairman Shantha Niriella on May 17, are designed to ensure consumer protection throughout various stages of an online transaction.
During the pre-purchase stage, e-commerce entities and platform operators are now required to adhere to fair business practices, advertising guidelines, and honest marketing strategies. They must refrain from engaging in deceptive or misleading practices and provide clear and unambiguous information regarding special offers, free trials, and any additional charges that may apply.
The gazette notification emphasizes that the displayed price of an item should align with the actual purchase price on the platform. This measure aims to prevent any misleading pricing tactics that can deceive consumers.
Transparency and authenticity in the rating and review system are also highlighted in the new regulations. E-commerce entities and platform operators must implement a fair and transparent rating and review mechanism, ensuring that false ratings and reviews are not published. It is strictly prohibited to hire third parties to post positive feedback on behalf of online sellers.
To protect consumer privacy, all e-commerce entities and platform operators must send a privacy statement to consumers when collecting their personal data. This measure ensures transparency and data protection in line with consumer rights.
During the purchase stage, consumers must be provided with an opportunity to review a summary of their order before confirming it. This gives customers the chance to ensure the accuracy of their purchase details and make informed decisions.
Moreover, e-commerce entities and platform operators are now obligated to enable customers to retain a comprehensive and accurate record of the transaction, compatible with their chosen device or platform. This helps consumers keep track of their purchases and facilitates dispute resolution if necessary.
To ensure transparency in financial transactions, a receipt must be issued by e-commerce entities and platform operators. The receipt should include the price of the item, including all charges, any compulsory or optional fees, payment methods, delivery terms, withdrawal and cancellation policies, warranties, guarantees, privacy policies, and dispute resolution options.
E-commerce entities and platform operators are also required to provide customers with user-friendly payment mechanisms and implement adequate security measures to mitigate payment-related risks. Additionally, they must employ reliable logistics providers for the delivery of goods, ensuring that customers receive their purchases in a timely and secure manner.
The gazette notification further emphasizes that customers should be provided with cooling-off periods and the right to cancel orders. E-commerce entities and platform operators must also assist customers in addressing any safety concerns related to the purchased goods, ensuring that all safety requirements have been disclosed.
With the introduction of these new regulations, the CAA aims to enhance consumer trust and confidence in online transactions while safeguarding their rights throughout the entire process. These measures will play a crucial role in promoting fair and transparent practices in the rapidly growing e-commerce sector.
