What legal remedies exist for consumers when products sold online do not match advertised specifications?

In the digital age, online shopping offers convenience and a wide variety of products. However, a common issue faced by many consumers is when products purchased online do not match the advertised specifications. Whether it’s a misleading product description, false claims, or incomplete information, consumers often find themselves with goods that do not meet their expectations.

Fortunately, Indian law provides several legal remedies for consumers in such situations. The Consumer Protection Act, 2019, the E-Commerce Rules, 2020, and other related regulations offer protection to consumers from misleading advertisements and unfair trade practices by e-commerce platforms.

Legal Remedies Available for Consumers:

Right to Return and Refund under the Consumer Protection Act, 2019:

• Section 2(47) of the Consumer Protection Act, 2019 defines unfair trade practices, including misleading advertisements and false representation of products. If an e-commerce platform or seller advertises a product with incorrect specifications and delivers a product that does not match the description, it constitutes unfair trade practice.
• Consumers are entitled to a refund, replacement, or repair of the product, depending on the nature of the issue and the seller’s return policy.
• The Consumer Protection (E-Commerce) Rules, 2020 mandate that e-commerce platforms must provide clear return policies for faulty or mismatched products. If the product does not meet the specifications, the consumer can return it and ask for a refund or exchange.

Filing a Complaint with the Consumer Forum:

• If an online seller refuses to provide a refund or replacement for a product that does not match the advertised specifications, consumers can approach a Consumer Forum under the Consumer Protection Act, 2019.
• The District Consumer Disputes Redressal Commission is the first point of contact for most consumers. If the amount involved exceeds ₹20 lakh, consumers can escalate the matter to the State Commission or the National Consumer Disputes Redressal Commission (NCDRC).
• Example: A consumer buys a mobile phone that is advertised to have a 16MP camera, but it has a lower resolution. The consumer files a complaint with the Consumer Forum, seeking a refund or replacement. The forum may order the seller to either fulfill the promised product specifications or provide compensation.

Compensation for Misleading Advertising:

• According to Section 2(9) of the Consumer Protection Act, 2019, if a product is found to be misrepresented or false advertising has occurred, the consumer can seek compensation for any financial loss or mental distress caused by the mismatch.
• Misleading advertising can involve exaggerating the features or performance of the product, which causes the consumer to make an informed purchase under false pretenses.
• Example: If an online platform falsely advertises a laptop with a high-performing processor, but the product delivered has a significantly lower spec, the consumer can seek compensation for the financial loss.

Refunds and Replacement Under E-Commerce Rules, 2020:

• The E-Commerce Rules mandate that e-commerce platforms must ensure that products match the advertised description. If a product does not meet the advertised specifications, consumers are entitled to a refund or replacement.
• The platform must ensure that misleading ads or false claims do not occur, and if they do, consumers must be provided an easy process to return the item and claim a refund. Failure to comply can result in penalties for the platform.
• Example: A consumer buys a jewelry item online, which is advertised as gold-plated but is made of a different material. The platform should immediately offer a return and refund.

Complaint to the Advertising Standards Council of India (ASCI):

• The Advertising Standards Council of India (ASCI) is a self-regulatory body that ensures that advertisements in India follow ethical practices and do not mislead consumers.
• If a consumer believes that a product was misrepresented or advertised falsely, they can file a complaint with ASCI. This organization will review whether the advertisement violated advertising norms and can order the advertisement to be removed or corrected.
• Example: If an e-commerce platform advertises a skin cream with unrealistic claims (such as guaranteed fairness in 7 days), consumers can report this to ASCI, which can act to stop such false claims.

National Consumer Helpline (NCH):

• The National Consumer Helpline (NCH) provides free guidance to consumers on how to handle issues such as misleading product descriptions or advertising discrepancies.
• Consumers can contact NCH for advice on how to lodge complaints and take action against e-commerce platforms that fail to meet advertised standards.
• The NCH can also forward complaints to the relevant Consumer Forum for further resolution.

Alternative Dispute Resolution (ADR) and Online Dispute Resolution (ODR):

• If the consumer and the e-commerce platform are unable to reach a resolution through regular complaints, they can opt for Alternative Dispute Resolution (ADR) mechanisms, such as mediation or arbitration.
• The Online Dispute Resolution (ODR) system is gaining traction, where disputes between consumers and online platforms can be resolved through digital means without the need for physical hearings.
• Example: If a consumer receives a product that does not match the advertised specifications and the seller refuses to cooperate, they can use an ODR platform to resolve the issue.

Legal Precedents and Case Law:

• Case: Hindustan Unilever Ltd v. Consumer Education and Research Centre (1995):
• In this case, the Supreme Court of India ruled that if a product is misrepresented in advertisements or if it does not match the advertised claims, the consumer is entitled to seek compensation and redress under the Consumer Protection Act.
• Case: K.K. Verma v. Amazon India (2020):
• In a landmark case, the National Consumer Disputes Redressal Commission (NCDRC) found that Amazon India failed to deliver a product that matched the advertised specifications. The court directed the platform to issue a refund and ordered compensation for mental distress caused by the misleading product.

Example Case:

• A consumer orders a smartphone online, which is advertised to have a fast charging feature and a high-resolution camera. However, when the consumer receives the product, the charging speed is much slower than advertised, and the camera quality is lower than the description. The consumer decides to file a complaint.

Steps Taken:

• Complaint Filed: The consumer files a complaint with the e-commerce platform and requests a refund or replacement.
• Consumer Forum: If the platform does not resolve the issue within a reasonable time, the consumer can approach the Consumer Forum seeking compensation and refund.
• Resolution: The court rules in favor of the consumer, ordering the platform to provide a refund and compensation for the mismatch in product specifications.

Conclusion:

• Consumers have several legal remedies available under Indian law when products purchased online do not match the advertised specifications. These include return and refund rights, compensation for financial loss or mental distress, and the ability to file complaints with consumer forums or regulatory bodies. E-commerce platforms are obligated to ensure that their products meet the claims made in advertisements and to provide fair resolution processes for consumers.