Executive Summary:
The Ministry of Consumer Affairs, Food and Public Distribution addresses the issue of misleading online reviews and ratings on e-commerce platforms. The government has taken steps including enacting the Consumer Protection Act, 2019, notifying a framework on Online Consumer Reviews by BIS in 2022, releasing guidelines and rules, and introducing a Safety Pledge. Draft guidelines for preventing fake online consumer reviews in 2024 have been circulated to stakeholders for comments.
Key Points / Main Content:
Legislative and Regulatory Framework:
* The Consumer Protection Act, 2019, replaced the 1986 Act to modernize consumer protection.
* Section 2(47) defines "unfair trade practice," encompassing deceptive methods related to product standards, false advertising, misleading warranties, and misrepresented prices.
* Section 2(28) defines "misleading advertisement" related to any product or service, as an advertisement which falsely describes such product or service or gives a false guarantee to, or is likely to mislead the consumers.
* The Consumer Protection (E-commerce) Rules, 2020, outline the responsibilities of e-commerce entities and specify liabilities for marketplace and inventory e-commerce entities, including customer grievance redressal.
* The Bureau of Indian Standards (BIS) notified a framework on Online Consumer Reviews in November 2022, establishing principles and requirements for their collection, moderation, and publication. Guiding principles include integrity, accuracy, privacy, security, transparency, accessibility, and responsiveness.
* Guidelines for Prevention and Regulation of Dark Patterns, 2023, were issued to address specified dark patterns in the e-commerce sector.
Consumer Grievance Redressal:
* The National Consumer Helpline (NCH) has registered 1137 grievances related to fake reviews since 2022, including 136 from Uttar Pradesh.
Initiatives and Engagements:
* A Safety Pledge has been finalized with stakeholders, with 13 major e-commerce companies signing it, committing to consumer safety.
* Draft Guidelines for Prevention, Regulation and Remediation of Fake Online Consumer Reviews, 2024, have been prepared and circulated to stakeholders for feedback.
* The Department of Consumer Affairs has held meetings with e-commerce companies regarding the adoption of the BIS standard on fake reviews.
Impact Analysis:
Consumers:
* Impact: Consumers are protected from fake and deceptive reviews, unfair trade practices, and misleading advertisements, ensuring transparency and fairness in online transactions.
* Action Required: Consumers can report grievances related to fake reviews through the National Consumer Helpline (NCH).
E-commerce Platforms:
* Impact: E-commerce platforms are responsible for adhering to the Consumer Protection Act, 2019, the Consumer Protection (E-commerce) Rules, 2020, and the BIS framework on Online Consumer Reviews.
* Action Required: E-commerce platforms should adopt the BIS standard on fake reviews, sign the Safety Pledge, and provide effective grievance redressal mechanisms. They should also review and provide comments on the Draft Guidelines for Prevention, Regulation and Remediation of Fake Online Consumer Reviews, 2024.
Bureau of Indian Standards (BIS):
* Impact: BIS is responsible for maintaining and enforcing the framework on Online Consumer Reviews.
* Action Required: BIS should continue to promote and monitor the adoption of the framework by online platforms.
Central Consumer Protection Authority (CCPA):
* Impact: CCPA is empowered to issue guidelines and take actions to prevent unfair trade practices and protect consumer interests.
* Action Required: CCPA should finalize and implement the Draft Guidelines for Prevention, Regulation and Remediation of Fake Online Consumer Reviews, 2024, and enforce regulations against dark patterns.
Key Entities Referenced
Consumer Protection Act, 2019: A key legislation enacted in India to modernize consumer protection framework, replacing the Consumer Protection Act, 1986.
Department of Consumer Affairs: A department within the Ministry of Consumer Affairs, Food and Public Distribution, responsible for consumer protection and empowerment.
Bureau of Indian Standards BIS: An agency that has notified framework on Online Consumer Reviews Principles and Requirements for their Collection, Moderation and Publication for safeguarding and protecting consumer interest.
Online Consumer Reviews Principles and Requirements: Framework notified by BIS on 23.11.2022 for Collection, Moderation and Publication for safeguarding and protecting consumer interest from fake and deceptive reviews in ecommerce.
Uttar Pradesh: A state in India where concerns about misleading product reviews and ratings on e-commerce platforms have been noted.
Consumer Protection Ecommerce Rules, 2020: Rules notified under the provisions of the Consumer Protection Act, 2019, to safeguard consumers from unfair trade practices in e-commerce.
National Consumer Helpline NCH: A helpline that has registered consumer grievances pertaining to fake reviews.
Central Consumer Protection Authority: An authority that issued Guidelines for Prevention and Regulation of Dark Patterns, 2023 on 30th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark patterns identified in eCommerce sector.
Government of India
Ministry of Consumer Affairs, Food and Public Distribution
Department of Consumer Affairs
LOK SABHA
UNSTARRED QUESTION NO. 4442
TO BE ANSWERED ON 20.08.2025
MISLEADING REVIEWS AND RATINGS ON E-COMMERCE PLATFORMS
4442. SHRI PUSHPENDRA SAROJ:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION be pleased to state:
(a) whether the Government has taken note of the increasing trend of fake or misleading product
reviews and ratings on e-commerce platforms particularly those operating in Uttar Pradesh, if so, the
details thereof;
(b) the steps taken by the Government to regulate or verify online reviews to protect consumer interest
and ensure transparency;
(c) whether the Government has engaged with e-commerce companies or issued specific advisory
guidelines to address this issue and if so, the details thereof;
(d) the details of the number of consumer complaints received on this matter since 2022, platform-wise;
(e) whether the Government is considering setting up a centralized review-verification mechanism or
penalty framework for platforms promoting misleading content; and
(f) if so, the details thereof?
ANSWER
THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI B.L.VERMA)
(a) to (f) : Department of Consumer Affairs is continuously working for consumer protection and
empowerment of consumers by enactment of progressive legislations. With a view to modernize the
framework governing the consumer protection in the new era of globalization, technologies, e-commerce
markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted.
The Bureau of Indian Standards (BIS) has notified framework on ‘Online Consumer Reviews —
Principles and Requirements for their Collection, Moderation and Publication’ on 23.11.2022 for
safeguarding and protecting consumer interest from fake and deceptive reviews in e-commerce. It lays down
the process which demonstrates the commitment of consumer review sites that they value their customers
and provide reviews that can be trusted. The standard is voluntary and is applicable to every online platform
which publishes consumer reviews. The guiding principles of the standard are integrity, accuracy, privacy,
security, transparency, accessibility and responsiveness.
"Unfair trade practice" [Section 2(47) of the Consumer Protection Act, 2019] encompasses deceptive
methods such as misrepresenting product standards, falsely advertising old goods as new, claiming
unverified sponsorship or benefits, offering misleading warranties, misrepresenting prices, or disparaging
competitors’ goods or services. These provisions ensure accountability, transparency and fairness,
safeguarding consumer interests in a dynamic marketplace.Section 2(28) of the Consumer Protection Act, 2019 defines “misleading advertisement” in relation
to any product or service, as an advertisement, which— (i) falsely describes such product or service; or (ii)
gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or
quality of such product or service; or (iii) conveys an express or implied representation which, if made by
the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or (iv)
deliberately conceals important information.
The Department of Consumer Affairs has notified the Consumer Protection (E-commerce) Rules,
2020 under the provisions of the Consumer Protection Act, 2019 to safeguard consumers from unfair trade
practices in e-commerce. These rules, inter-alia, outline the responsibilities of e-commerce entities and
specify the liabilities of marketplace and inventory e-commerce entities, including provisions for customer
grievance redressal.
Further, National Consumer Helpline (NCH) has registered a total number of 1137 grievances
pertaining to Fake Reviews from different States/UTs since 2022. Out of these grievances, 136 have been
registered from the State of Uttar Pradesh.
The Central Consumer Protection Authority, in exercise of the powers conferred by Section 18 of the
Consumer Protection Act, 2019, has issued “Guidelines for Prevention and Regulation of Dark Patterns,
2023” on 30th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark
patterns identified in e-Commerce sector.
A “Safety Pledge” has been finalized, in consultation with all the stakeholders, which is a voluntary
public commitment of e-Commerce platforms to ensure the safety of goods sold online and respect the
consumer rights. Aligned with global best practices, this initiative strengthens consumer protection in the e-
commerce. So far, 13 major e-Commerce companies including Reliance Retail group, Tata sons group,
Zomato, Ola, Swiggy etc. have signed the Safety Pledge for ensuring consumer safety.
In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019 (35 of
2019), the Central Consumer Protection Authority has prepared “Draft Guidelines for Prevention,
Regulation and Remediation of Fake Online Consumer Reviews, 2024” and circulated to the stakeholders
for their comments/inputs. The Department has also hold a meeting with the ecommerce companies
regarding adoption of Standard on Fake Reviews.
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