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On Wednesday, the Department of Consumer Affairs held a stakeholder meeting with e-commerce firms on protection of consumer interest from online fake reviews. Leading e-commerce firms in India voiced support for the government's initiative to enforce quality standards for consumer reviews, as announced by the Consumer Affairs Department.
The number of consumer grievances relating to e-commerce registered on the NCH have increased significantly, it noted. From 95,270 in 2018 (22 per cent of total grievances), the number of grievances have risen to 444,034 in 2023 (43 per cent of total grievances).
The Consumer Department noted that the presence of fake reviews online jeopardises the trustworthiness and credibility of shopping platforms and can cause consumers to make wrong purchase decisions.
As e-commerce offers a digital shopping environment where consumers can't physically examine products, they heavily rely on reviews posted on these platforms to gain insights and learn from the experiences of previous buyers, it added.
India’s e-commerce market is estimated at $112.93 billion in 2024 and expected to touch $299.01 billion by 2029, growing at a compound annual growth rate of 21.5% over this period, according to a report by Mordor Intelligence.
India’s e-commerce market is estimated at $112.93 billion in 2024 and expected to touch $299.01 billion by 2029, growing at a compound annual growth rate of 21.5% over this period, according to a report by Mordor Intelligence.
E-commerce firms welcome govt's proposal
During a gathering in New Delhi, delegates from prominent platforms such as Amazon, Flipkart, Google, and Meta, among others, expressed their endorsement of the proposed quality control measures aimed at implementing the IS 19000:2022 standard for 'online consumer reviews', as detailed in a press release issued by the Department.
There was a consensus that the order is important to protect consumer interests from misleading reviews on shopping websites and apps, it said, adding that the draft order will be put up for public consultation.
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"The discussion on moving towards a Quality Control Order for IS 19000:2022 was welcomed by stakeholders and there was a general consensus among all stakeholders that the issue of fake reviews is important to protect consumer interest while shopping online, and requires to be closely monitored," the Department said in a statement.
Chairing the meeting, Consumer Affairs Secretary Nidhi Khare said the standard was important as online shoppers heavily depend on reviews for purchases they cannot physically inspect.
Khare stated that e-commerce platforms functioning in India must create a formal code of conduct, ensuring it is shared and accessible to all personnel. They must also exhibit how this document and its guiding principles will be adhered to and sustained.
What are the proposed measures to safeguard from fake reviews?
As per a Hindustan Times report, the Consumer Affairs Ministry found that fake reviews affect online customers in the hotel, tours and travel segments as well as the food and beverages the most.
The proposed Quality Control Order (QCO) prohibits organisations from publishing consumer reviews online with biased objectives and prejudices, editing reviews to change their message, or preventing or discouraging negative review submissions.
The standard also prescribes specific responsibilities for review authors and administrators. It requires review authors to be identified, bars editing of reviews to alter messaging, and prohibits preventing or discouraging negative reviews, the press release noted.
A year earlier, the government issued quality norms for e-tailers, prohibiting them from publishing paid reviews and demanding disclosure of such promotional content. But the norms were voluntary in nature.
While welcoming the move, consumer activist Pushpa Girimji said that the "enforceability" of such standards would be key to effectively check the menace of fake reviews.
