UPSC Prelims Practice Questions — Government amends E-Commerce Rules to strengthen consumer protection and promote transparency
Q1. Under the Consumer Protection (E-Commerce) Rules, 2020, the expression 'e-commerce entity' has been defined to mean which one of the following?
- A. Any person who owns the inventory of goods and services and sells such goods and services directly to consumers over a digital network
- B. Any person who provides an information technology platform on a digital and electronic network to act as a facilitator between the buyer and the seller
- C. Any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce, other than a seller offering goods on a marketplace platform
- D. Any person, including a seller listed on a platform, who advertises or offers goods and services on a digital and electronic network for a consideration
Q2. Consider the following statements regarding the statutory framework governing e-commerce consumer protection in India:
1. The Consumer Protection Act, 2019 repealed and replaced the Consumer Protection Act, 1986.
2. The Consumer Protection (E-Commerce) Rules, 2020 were framed under the Information Technology Act, 2000.
3. The Central Consumer Protection Authority was established under Section 10 of the Consumer Protection Act, 2019.
4. A regulator empowered to initiate class action, including recall and refund, existed under the Consumer Protection Act, 1986 as well.
Which of the statements given above is/are NOT correct?
- The Consumer Protection Act, 2019 repealed and replaced the Consumer Protection Act, 1986.
- The Consumer Protection (E-Commerce) Rules, 2020 were framed under the Information Technology Act, 2000.
- The Central Consumer Protection Authority was established under Section 10 of the Consumer Protection Act, 2019.
- A regulator empowered to initiate class action, including recall and refund, existed under the Consumer Protection Act, 1986 as well.
- A. 1 and 3
- B. 2 only
- C. 2 and 4
- D. 1, 2 and 4
Q3. Apart from the Chief Commissioner, how many Commissioners does the Central Consumer Protection Authority consist of, as provided in the Consumer Protection Act, 2019?
- A. One
- B. Two
- C. Three
- D. Five
Q4. The Joint Working Group on dark patterns, comprising representatives of concerned Ministries, regulators, Voluntary Consumer Organisations and National Law Universities, was constituted by which one of the following?
- A. The National Consumer Disputes Redressal Commission, the apex adjudicatory body for consumer disputes
- B. The Ministry of Electronics and Information Technology, through its Grievance Appellate Committee mechanism
- C. The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
- D. The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution
Q5. Consider the following statements comparing the Central Consumer Protection Authority's advisory of 5 June 2025 with its Guidelines for Prevention and Regulation of Dark Patterns, 2023:
1. The 2025 advisory required a self-audit to be completed within three months of its issue, whereas the 2023 Guidelines prescribed no such audit timeline.
2. The 2025 advisory expanded the list of specified dark patterns from 13 to 26.
3. The 2025 advisory was addressed to online service providers in addition to e-commerce platforms.
Which of the statements given above is/are correct?
- The 2025 advisory required a self-audit to be completed within three months of its issue, whereas the 2023 Guidelines prescribed no such audit timeline.
- The 2025 advisory expanded the list of specified dark patterns from 13 to 26.
- The 2025 advisory was addressed to online service providers in addition to e-commerce platforms.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q6. Consider the following statements regarding the Guidelines for Prevention and Regulation of Dark Patterns, 2023 and the Consumer Protection (E-Commerce) Rules, 2020:
1. The 2023 Guidelines were issued by the Central Consumer Protection Authority, whereas the 2020 Rules were notified by the Central Government.
2. Engaging in a dark pattern specified in the 2023 Guidelines falls within the category of unfair trade practices under the Consumer Protection Act, 2019.
3. Unlike the 2020 Rules, the 2023 Guidelines apply only to marketplace e-commerce entities and not to advertisers or sellers.
Which of the statements given above is/are correct?
- The 2023 Guidelines were issued by the Central Consumer Protection Authority, whereas the 2020 Rules were notified by the Central Government.
- Engaging in a dark pattern specified in the 2023 Guidelines falls within the category of unfair trade practices under the Consumer Protection Act, 2019.
- Unlike the 2020 Rules, the 2023 Guidelines apply only to marketplace e-commerce entities and not to advertisers or sellers.
- A. 1 and 2 only
- B. 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. The requirement that an e-commerce entity appoint a Chief Compliance Officer, a nodal contact person for 24x7 coordination with law enforcement agencies, and a Resident Grievance Officer, each resident in India, was proposed under which one of the following?
- A. The Guidelines for Prevention and Regulation of Dark Patterns, 2023 issued by the Central Consumer Protection Authority
- B. The Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020 notified by the Central Government
- C. The draft amendments of 2021 to the Consumer Protection (E-Commerce) Rules, 2020 placed for public comments
- D. The Consumer Protection (Jurisdiction of the District, State and National Commissions) Rules, 2021
Q8. Consider the following:
1. An entity that owns the inventory of goods and services and sells them directly to consumers over a digital network is an inventory e-commerce entity.
2. An entity that provides an information technology platform on a digital network to act as a facilitator between buyer and seller is a marketplace e-commerce entity.
3. A seller who offers his goods for sale on a marketplace platform is himself an e-commerce entity under the 2020 Rules.
4. Fall-back liability was proposed to be fastened on a marketplace e-commerce entity where a seller fails to deliver goods or services owing to negligent conduct.
Which of the above is/are correctly identified?
- An entity that owns the inventory of goods and services and sells them directly to consumers over a digital network is an inventory e-commerce entity.
- An entity that provides an information technology platform on a digital network to act as a facilitator between buyer and seller is a marketplace e-commerce entity.
- A seller who offers his goods for sale on a marketplace platform is himself an e-commerce entity under the 2020 Rules.
- Fall-back liability was proposed to be fastened on a marketplace e-commerce entity where a seller fails to deliver goods or services owing to negligent conduct.
- A. 1 and 3
- B. 2 and 3 only
- C. 1, 2 and 4
- D. 1 and 2 only
Q9. In the 2021 draft amendments to the Consumer Protection (E-Commerce) Rules, 2020, the practice sought to be curbed as a 'back to back' or 'flash' sale was described as one in which —
- A. a platform offers a limited quantity of goods at steep discounts for a short, pre-announced window so as to create urgency among buyers
- B. a platform sells goods of its own group companies below cost so as to gain market share at the expense of independent sellers on it
- C. a platform records a sale in favour of a consumer and immediately cancels it so as to inflate its reported gross merchandise value
- D. a seller on the platform holding no inventory or order fulfilment capability merely places the order with another seller controlled by that platform
Q10. Consider the following statements regarding consumer dispute redressal under the Consumer Protection Act, 2019:
1. A District Commission can entertain a complaint where the value of the goods or services paid as consideration does not exceed fifty lakh rupees.
2. Every consumer complaint must necessarily be filed in physical form at the seat of the Commission, as electronic filing is not permitted.
3. All consumer disputes are compulsorily referred to mediation before they are adjudicated by the Commission concerned.
4. The Central Consumer Protection Authority does not adjudicate individual consumer disputes but acts against violations of the rights of consumers as a class.
Which of the statements given above is/are NOT correct?
- A District Commission can entertain a complaint where the value of the goods or services paid as consideration does not exceed fifty lakh rupees.
- Every consumer complaint must necessarily be filed in physical form at the seat of the Commission, as electronic filing is not permitted.
- All consumer disputes are compulsorily referred to mediation before they are adjudicated by the Commission concerned.
- The Central Consumer Protection Authority does not adjudicate individual consumer disputes but acts against violations of the rights of consumers as a class.
- A. 1 and 4
- B. 1, 2 and 3
- C. 3 only
- D. 2 and 3