Centre is developing a framework to keep a check on fake reviews on such portals, and the comprehensive rules are likely to be laid down by the CCPA by July 31
The government’s deadline for e-commerce companies to submit feedback on paid/ fake reviews is ending on Friday. The Centre is developing a framework to keep a check on fake reviews on such portals, and the comprehensive rules are likely to be laid down by the CCPA by July 31, sources told CNBC-TV18.
The suggestions have been sought from top companies like Amazon, Meesho and Reliance Retail. The suggestions also sought from industry associations such as FICCI, Confederation of Indian Industry (CII), Assocham, and Confederation of All India Traders (CAIT), according to the sources. The Ministry of Consumer Affairs said that misleading reviews violate consumers’ rights under the Consumer Protection Act, 2019.
The Department of Consumer Affairs, in association with the Advertising Standards Council of India (ASCI) along with various stakeholders like e-commerce entities, consumer forums, law universities, lawyers, FICCI, CII and consumer rights activists has also ready discussed the magnitude and road map ahead for fake reviews on websites.
The government has earlier said that since e-commerce involves a virtual shopping experience without any opportunity to physically view or examine the product, consumers heavily rely on reviews posted on e-commerce platforms to see the opinion and experience of users who have already purchased the good or service.
Consumer Affairs Secretary Rohit Kumar Singh has said, “Traceability by ensuring the authenticity of the reviewer and the associated liability of the platform are the two key issues here. Also e-commerce players must disclose as to how they choose the ‘most relevant reviews’ for display in a fair and transparent manner.”
According to an EU-wide screening of online consumer reviews across 223 major websites, about half of the websites violate the unfair commercial practices directive of the EU.
On June 10, days after meeting stakeholders, the Department of Consumer Affairs (DoCA) said it would develop the framework within 60 days. A committee was also constituted under the chairmanship of Additional Secretary Nidhi Khare. The committee has representatives of e-commerce companies, both big and small, some industry organisations, such as CII, Federation of Indian Chamber of Commerce & Industries (FICCI), and the Associated Chamber of Commerce (Assocham).
Even after the physical stores opened after the pandemic, India’s e-commerce business is expected to grow at a rate of 21.5 per cent by 2022.
