Consumer protection is the practice of protecting consumers from products and services, as well as the general public, from unfair business practices. Laws are often enacted to protect consumers.
Despite the significance of consumer trust in business-to-consumer e-commerce, many developed and emerging economies lack consumer protection laws.
If you are reading this article for research purposes, you can check third-party review sites like Collected.Reviews to check customers’ feedback on the online shopping experiences and how these laws affected those experiences.
Below are 6 universal laws that protect online shoppers:
1. Online payment security
The EU has adopted payment security principles. A need for “good customer verification” that necessitates the proper check of customers’ means of identification using a variety of approaches In the United States, authentication is needed. The Card Industry Data Security Standard establishes Authentication standards that differ depending on the size of the business. It has become an important component of card network agreements with merchants.
2. Electronic contract
The right to withdraw an agreement is not available in Switzerland or the United States, though there are a few exceptions to federal law in the United States, and many businesses in the United States surpass the legal minimum standards for providing a right of return. In Japan, customers have up to eight months to return an item.
3. Contract terms
The Unfair Conditions in Consumer Contracts Directive of the European Union applies to the concept of “good faith” to avoid major imbalances in consumer rights and obligations. Buyers and sellers Contract terms must be written according to the directive. In simple and understandable words, and declares that there are no ambiguities that should be viewed in the consumer’s favor.
4. Personal information and privacy
Traders in the EU are expected to comply with Directive 98/6/EC. (The Price Indication Directive),75 to display the sale price. In a way that is easily recognizable and readable. Some Laws should be applied, such that both parties have a better understanding of the value of the person. As an example, a situation in which a customer is given a “free service” exchange of personal information.
5. Liability rules
From the time of dispatch, until the buyer receives the goods, the trader is responsible for any harm to the goods in the EU. This isn’t always the case, and inter-jurisdictional cooperation isn’t always possible. Grey areas may arise as a result of differences.
6. Online dispute resolution
The EU has attempted to streamline court processes to make them better suited to resolving customer e-commerce conflicts. It has also revised laws and implemented new policies. Instruments for “alternative conflict resolution” (ADR) have been placed in place. Procedures are covered by the Consumer ADR Directive. concerning the out-of-court settlement of both domestic and international disputes
Out of the 134 countries where data is accessible, 109 have enacted consumer protection regulations relating to e-commerce. E-transaction legislation that acknowledges the constitutional equivalence between paper-based and digital means of trade is a requirement for performing business transactions electronically.