Consumer Confidence on State Regulation of e-Commerce in India

Transformation of business from physical space to cyberspace in zeal to capture market share by many organizations has perpetuated the regulators globally to reframe and redefine the regulation to protect the rights of consumers and ensure their privacy and security. In various countries, the legal protection available to the aggrieved consumers is insufficient to protect their interest and build a healthy business environment. Protection of consumers is not only regulatory, but also ethical. India has witnessed various changes in regulation of e-commerce to align with the global e-business environment and has promulgated major changes in legislation dealing with consumer protection and competition. However, various studies in India, Europe and other emerging markets have indicated deficiencies in regulation of e-commerce that shakes the confidence of consumers. Our paper attempts to explore the confidence of consumers in India's regulatory framework during various stages of e-commerce interface. We have conducted a survey of 450 consumers that have experienced the application of state regulation in one or other form ranging from the issues of advertisements, payments systems to that of consumer protection and remedial measures. The results of SEM analysis shows that consumer’s confidence in state regulation in India is low, which essentially requires major changes in regulation and dynamic control over the e-commerce transactions. There are still a significant number of unfair trade practices and a host of issues relating to data privacy and information security.