E-Commerce: Refund & Cancellation Policy and Rules

There are some risks associated with online shopping in India, particularly when it comes to buy things—clothing, cosmetics, shoes, personal care products, or electronics—without seeing or trying it. Due to issues with size, fit, quality, color, or delivery, you need to return things; as a result, you should be eligible for a refund or a replacement. In certain cases, seller refuses to return or refund your purchased products; hence you should be aware with the refund and cancellation policy. In this blog post, we have discussed the e-commerce models, laws governing e-commerce policies in India, refund & cancellation policy, etc. Let’s have a look.

Watch Video – Can shopkeepers and e-commerce companies deny return or exchange?

What are the different types of e-commerce models?

There are mainly four e-commerce models such as:

• Business to Business (B2B)
• Business to Consumer (B2C)
• Consumer to Consumer (C2C)
• Consumer to Business Model (C2B)

Laws Governing E-Commerce Policies in India

In India, there are certain laws governing e-commerce policies like

• Information Technology Amendment Act, 2008
• Consumer Protection Act, 2019
• Regulatory organizations, like the Indian Medical Association (IMA), establish guidelines that control the development of medical sciences, as well as the enhancement of public health and societal well-being in general

What is a Refund and cancellation policy?

When a customer returns anything they bought from an online retailer, the transaction is called canceled. This could be the result of defective or low-quality items that, at the time of purchase, did not match the specifications listed on the website, or it might be the result of the consumer finding the identical thing elsewhere for less money.

An e-commerce platform's refund policy stipulates that customers may return goods and services for a refund of the price they paid at the time of purchase if they are dissatisfied. Customers may be unable to return an item after a specific amount of time, such as seven or forty days from the date of delivery.

Role of the Consumer Protection Act, 2019

The Consumer Protection Act of 2019 included new guidelines and standards pertaining to consumer complaints. This legislation calls for the creation of a Central Consumer Protection Authority to safeguard the interests of consumers. This rule prohibits the seller from refusing to take back defective, delayed, or items that don't match the specifications listed on the website. The Act provides that:

• The right to return any durable or semi-durable items for a refund within 15 days of the original purchase date, provided that the items are sent back in their original packaging, undamaged, and without any size or form changes.
• The guarantees are covered by the product purchase price, and the supplier is not allowed to charge the customer any additional costs for acquiring the guarantees;
• The buyer has returned defective items and will return them to the manufacturer's wholesaler from whom he purchased them.
• To redress his complaints, the customer should opt the following consumer disputes redressal committee, the Central Consumer Protection Council and/or the state consumer protection council.

Tips for consumers to have a hassle free experience on an E-Commerce Platform

• Known about the unknown online retailer before making a purchase from them and don't buy it if you're not sure.
• If this is your first time purchasing from an online retailer, choose cash on delivery.
• Before making a purchase, see the privacy statement and terms of use.
• Recognize refund, return, and cancellation procedures.
• Verify that the customer service details of the online retailer, including address, email address, and phone number/helplines, are accessible.
• Read the product and warranty details carefully, and find out if there are enough supplies of the necessary material.
• Prior to completing the payment, confirm that the goods may be shipped to your postal pin code.

If the corporation later modifies the product's definition or pricing, take a screenshot of the item or service you purchased.