Development of Digital Markets and Protection of e-Consumers

Abstract

The trading mechanisms and trends are experiencing a rapid change from conventional to digital style. These rapid trends towards digital trading require compatible and effective digital solutions in order to protect the stakeholders of digital markets. The development of e-commerce also depends on strong and supportive legal framework that ensures protection of buyers from digital frauds and consumer rights violations. This article includes discussions on federal as well as provincial level institutions which are responsible for provision of digital infrastructure and legal framework to facilitate e-commerce in Pakistan. It also explains how a consumer needs protection of his rights from fraudulent, deceptive and unfair trade practices. The study also throws light on general regulatory framework of relevant institutions and anticipated regulatory framework for digital trade. It is observed that the existing rules, frameworks, policies, guidelines, Acts etc. do not protect e-consumers due to which consumers can’t build their confidence to use online platforms for buying and selling. The existing facilities of consumer protection, somehow, support a conventional consumer more than a digital consumer. Most of the online consumers complain about deceptive and low quality products, delayed or sometimes even no delivery of the ordered product, no proper complaint mechanism, weaker or no refund policy and lack of effective consumer redress mechanism. The study recommends taking all necessary steps to improve the level of consumer protection through well-suited proper legal framework bringing upward changes in digital infrastructure for development of digital trade in Pakistan.