How to check if an online seller is registered under Consumer Protection Act?

When shopping online, it's important to know whether the online seller is operating legally and complying with the Consumer Protection Act, 2019, which is designed to protect consumer rights. The Act regulates e-commerce activities in India and requires online sellers to adhere to guidelines regarding product quality, returns, refunds, and transparency in transactions. While there’s no direct central database of registered sellers, consumers can still check a few indicators to determine if the online seller is complying with the law and is trustworthy.

Steps to Verify If an Online Seller Is Registered Under the Consumer Protection Act

1. Check the Seller's Profile on E-Commerce Platforms

Most e-commerce platforms (like Amazon, Flipkart, Snapdeal, etc.) have a process for registering sellers. When browsing the platform, ensure that the seller is a verified or trusted seller:

• Look for certifications or trust seals like Amazon Certified or Flipkart Assured, which indicate that the seller is following platform guidelines, including those related to consumer rights.
• Many platforms also provide customer ratings and reviews, which help assess the legitimacy of the seller.
• Ensure the seller provides clear contact information, including a physical address and customer support number.

2. Check for Compliance with E-Commerce Rules (2020)

Under the Consumer Protection (E-Commerce) Rules, 2020, online sellers must follow specific requirements:

• They should display a comprehensive return and refund policy.
• Provide accurate information about the goods, including pricing, and avoid misleading claims.
• Ensure that the product warranty and guarantee are clearly communicated.

Most platforms require sellers to agree to these terms during registration, and you can look for such policies on the seller’s page.

3. Verify Seller Registration with Government Authorities

While individual sellers are not registered under the Consumer Protection Act, the Act holds e-commerce platforms accountable for ensuring that their sellers follow the rules. However, some sellers may also need to register with the Ministry of Corporate Affairs (MCA) or Goods and Services Tax (GST) authorities:

• GST Registration: Sellers who exceed a certain turnover threshold must register for GST. You can ask the seller for their GSTIN (Goods and Services Tax Identification Number), which can be verified on the GST portal (www.gst.gov.in).
• Company Registration: If the seller operates as a company, you can search for their name on the MCA website (www.mca.gov.in) to confirm whether they are a registered legal entity in India.

4. Look for Registration with Consumer Protection and Regulatory Bodies

Some reputed online sellers may voluntarily register with industry bodies or consumer protection associations (like CMAI, CII, or FICCI), although this is not a requirement.

If a seller is affiliated with these organizations, it can indicate that they adhere to ethical business practices and are more likely to resolve any consumer complaints under the Consumer Protection Act.

5. Check for Transparency in Seller's Terms and Conditions

According to the Consumer Protection (E-Commerce) Rules, 2020, online sellers are required to provide clear terms and conditions about the sale of goods and services. Make sure:

• The seller provides information about return and refund policies.
• There is clarity about warranties, guarantees, and the price of the product.
• Sellers must also disclose their contact details for easy resolution of consumer issues.

6. Look for the Red Flags of Fraudulent Sellers

Be cautious if you find any of the following:

• Lack of clear contact information.
• No return/refund policy or unclear terms.
• A non-existent address or only a PO Box.
• Too many negative reviews or complaints about the seller on platforms and forums.

7. Contact the Seller Directly

Before making a purchase, contact the seller directly using the details provided on the platform:

• Ask for information about the product, its authenticity, and warranty.
• Verify if the seller adheres to Consumer Protection Act guidelines, including providing clear details about refunds, returns, and product quality.

Legal Steps to Take if an Online Seller Is Not Registered or Is Non-Compliant

If you suspect that the online seller is operating illegally or not following the Consumer Protection Act, you can take the following steps:

1. File a Complaint with the E-Commerce Platform

Most platforms have a customer support system that allows consumers to file complaints about fraudulent sellers. They will either investigate the issue or assist with a resolution.

2. Approach Consumer Forums

If the platform fails to resolve the issue or if the seller is uncooperative, you can file a complaint with the District Consumer Forum, State Consumer Forum, or National Consumer Disputes Redressal Commission (NCDRC) depending on the value of the complaint.

3. Report the Seller to Regulatory Authorities

If the seller violates GST laws, report them to the GST Department.

If the seller is misleading consumers, file a complaint with the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act, 2019.

Example

Let’s say you are looking to purchase a laptop from an online store. You notice that the product page doesn’t display sufficient details about the warranty, return policies, or seller information.

Steps to verify the seller:

• Check for verified seller badges on the platform and reviews from other customers.
• Contact the seller for more details about the laptop’s warranty and return policy.
• Ask the seller for their GSTIN and check it on the GST portal to confirm they are registered.
• If the seller is non-compliant, file a complaint with the platform or escalate it to the Consumer Forum.

Conclusion

While there is no direct national registry to verify if an online seller is officially registered under the Consumer Protection Act, 2019, consumers can take several steps to verify the seller’s legitimacy. These include checking for certified seller badges on e-commerce platforms, requesting GST numbers and company registration details, and reviewing the seller’s policies. By staying informed and vigilant, consumers can safeguard themselves against fraud and ensure that their online shopping experience is secure and reliable.