New Delhi: E-commerce platforms will soon be subject to stricter norms for consumer reviews, with the Ministry of Consumer Affairs planning to crack down on fake feedback, a top government official said.
The government initiative follows the failure of a voluntary mechanism, introduced a year ago, to combat fake reviews. A meeting is scheduled for May 15 to finalize the guidelines, the official added.
The mechanism had banned platforms from publishing paid reviews and required disclosure of promotional content, but complaints about substandard products increased, indicating e-commerce platforms were not adhering to the rules.
After reviewing all these complaints, the Department of Consumer Affairs (DoCA) concluded that mandatory regulations were needed to curb fake reviews as consumers were at risk of being cheated, the official said.
'Fake reviews are still being published'
“The voluntary standard for online reviews was announced a year ago. However, fake reviews continue to be published despite some e-commerce players claiming compliance,” Consumer Affairs Minister Nidhi Khare said.
Representatives of most e-commerce companies are expected to attend the meeting to participate in the discussions, Khare said. The government wants to make these standards mandatory to protect consumer interests, she added.
The Bureau of Indian Standards (BIS), which operates under the Ministry of Consumer Affairs, released the standards for online consumer reviews in November 2022, which include paid reviews and reviews written by persons hired for this purpose by the supplier or a third party party, ban.
With the growth of e-commerce services, consumers typically rely on online reviews for purchasing decisions, with little opportunity for hands-on inspection. But misleading reviews can lead to purchases based on false information.
According to the India Brand Equity Foundation (IBEF), an organization of the Ministry of Commerce, India's e-commerce industry is expected to reach $300 billion by 2030. Third-party logistics providers are expected to handle about 17 billion shipments within seven years, it added.
The Indian e-tailing market is expected to cross $160 billion by 2028. By 2023, this was estimated at $57-60 billion, translating into an annual addition of $8-12 billion since 2020, the IBEF report said.
.over, according to the report, India's online grocery sales are estimated at $26.93 billion in FY27, up from $3.95 billion in FY21, registering a compound annual growth rate (CAGR) of 33%.
India's digital consumer economy is expected to be a $1 trillion market by 2030, up from $537.5 billion in 2020, thanks to increasing adoption of online services, including e-commerce and edtech.
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Published: May 13, 2024 10:25 PM IST
