Consumer Protection Laws Essay Example

money for products. However, determining who qualifies as a "customer" in Australia has been challenging when creating customer protection legislation (The Treasury, 2010). The term "customer" has diverse interpretations under various State and Territory laws based on factors such as the product or service acquired, acquisition cost or nature, or objective behind it. For instance, Queensland considers only "person" as a valid customer category for products or services over $40,000 while other laws have broader definitions encompassing partnerships, businesses and companies as "individuals"(The Treasury, 2010). Such conflicting laws at both state and federal levels lead to confusion among consumers and businesses. In India, consumer exploitation was prevalent for an extended period (Consumer Unity & Trust Society, 2008).

The Indian consumer has historically been vulnerable due to lack of support from any organized body or union, while Indian traders, manufacturers, and industrialists wielded significant power (Consumer Unity & Trust Society, 2008). However, the recognition of consumer rights has increased in recent times. In December 1986, the Consumers Protection Act was passed to establish consumer councils and other authorities for the settlement of consumer disputes and provide better protection for their interests (National Consumer Disputes Redressal Commission, unknown).

The establishment of councils consisting of consumers and their chosen representatives serves the purpose of preventing businesses and individuals from unfairly exploiting consumers, as outlined by India's consumer protection law. These councils operate under guidelines set forth by the National Consumer Disputes Redressal Commission in order to hear and resolve disputes. In comparison to Australia, India's laws regarding consumer protection are simpler because Australia has numerous laws covering fair trading and consumer protection at government and state levels in both paper

and electronic formats.

The Consumer Protection Act (1986) provides protection for consumers in India, where consumer rights have only recently been recognized under the law. However, internet penetration in India is low at 4%, compared to Australia's 71%. In September 2001, only 41% of internet users aged 14 years and over were shopping and selling online. By June 2006, this number had increased to 64%. Nonetheless, online shopping remains unpopular in India due to factors like low internet penetration, a small credit card population, reluctance to use credit cards for online purchases, and unfavorable taxation rules. It begs the question of which country offers the best consumer protection and whether there is room for improvement in both countries' consumer protections. Additionally, businesses may feel burdened by legal requirements; how can they be improved?

The current consumer protection laws in India prioritize sales made in person rather than those made online, unlike Australia where a significant portion of purchases occur online and laws addressing this are more advanced. Online shopping in India is often problematic due to issues such as delayed delivery, damaged or substandard goods, poor quality, and fraud where goods are not shipped at all. Consequently, Indian consumers have an inferior online shopping experience and inadequate legal protection for purchased items (GFA Consulting Group, 2008). Conversely, Australian consumers can rely on the Australian Competition and Consumer Commission (ACCC) to safeguard their interests when buying online. The ACCC ensures compliance with the Trade Practices Act by addressing complaints and inquiries while monitoring market activities to take necessary action (ACCC, 2010).

Having a government organization dedicated to addressing consumer issues regarding online purchases provides a sense of

security to consumers. In Australia, multiple policies, such as the One-Stop-Shop for Consumer Protection, offer information on how to file complaints regarding purchased goods and services, product safety and recalls, and online consumer resources. The Australian Consumers Handbook also includes a list of over 730 private, community, and government organizations that offer complaint handling services. Meanwhile, India currently lacks such an organization for consumer protection, leaving room for potential growth. However, Indian citizens can seek assistance from the International Consumer Rights Protection Council, which provides guidance and help for taking legal action through the Indian Court. Additionally, the United Nations has been developing foundations for online dispute resolution since the 2003 United Nations Conference on Trade Development.

Even if Indian citizens do not have access to national-level guidance, there are international organizations that aim to safeguard consumers globally. Based on this evaluation, Australia currently provides better consumer protection, but India is still in its early stages of development for online shopping and has room for growth. One noteworthy example of how e-commerce development impacts laws is in Australian contract law, where many transactions involve forming a contract.

According to Reinsch (2005), specific requirements and enforceable measures must be met for a contract to be considered valid, but these standards were not initially intended for contracts formed through the Internet. To accommodate the increasing prevalence of e-commerce, Australia's legal system has had to gradually adapt, which depends on government support and unique legal solutions required by new cases. India is an example of such situations arising (Beard, 2000). The ongoing development of laws is further necessitated by advancements in technology.

According to Anonymous (2003), the traditional principles of

consumer protection do not apply in the new environment created by the Internet. As it is a global medium, there is a need for uniform regulations on online shopping. Despite efforts by international organizations to protect consumers in e-commerce, they face obstacles from national laws. However, online businesses have advantages such as access to larger markets, faster customer relations, lower transaction and labor costs, smaller start-up costs, ease of upgrade and reinvention, greater consumer access, and lower barriers to entry (Reinsch, 2005). Nevertheless, e-commerce also has disadvantages such as onerous legal requirements. Reinsch (2005) argues that the cyber legal environment is unknown and can only be understood when a lawsuit arises.

For businesses that operate online, it is crucial to comply with domestic and international consumer protection laws. To achieve this, they must exercise caution when engaging with their customers in the virtual world. While India and Australia have existing legislations on consumer protection, these laws require revision and improvement to effectively address the unique challenges posed by e-commerce. Given India's rapid economic growth and urbanization trends, there is a growing potential for increased use of online shopping platforms, heightening the importance of amending consumer protection laws to ensure customer safety during digital transactions.