Government Unveils Advanced AI Tools for Consumer Protection and E-commerce Safety

Published: 31 Dec 2024

Author: Precedence Research

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The Indian government, along with Food and Consumer Affairs Minister Pralhad Joshi, undertook a series of initiatives for consumer protection to empower buyers and tackle significant grievances in the marketplace, such as the National Consumer Helpline, the e-map portal, and the "Jago Grahak Jago" mobile application, among others. The initiatives were launched during the National Consumer Day event when major e-commerce players pledged to make online shopping widely recognized and patronized.

AI-Driven Consumer Protection Tools

Artificial intelligence applications are being introduced in the armory of the Indian government to protect consumer rights. A National Consumer Helpline has been established for effective complaint processing, along with an e-map portal to file and track complaints. The Jago Grahak Jago mobile application is designed to make consumers aware of their rights, regulations, and remedies. According to Mr. Joshi, the government will leverage digital technology to empower consumers and enable them to make safe and informed decisions.

Enhancing Consumer Dispute Resolution

Joshi reported advances in settling consumer disputes, which accounted for 6,587 cases between January and November, through the three-tier mechanism of consumer courts. Some highlights included the full-scale adoption of the e-Daakhil Portal in Karnataka, Punjab, and Rajasthan, which started in 2020 for electronically filing complaints. New challenges in e-commerce included misleading advertisements and vague disclosures about products; examples of platforms include Reliance Retail and Zomato, both of which excel in this area as they offer excellent protection for consumers. In this regard, the government has also taken proactive steps against misleading advertisements, and chains from the Consumer Protection Authority (CCPA) have been established to regulate surrogate advertising. Thus far, notices have been sent to 13 companies for violations of existing rules.

Public and Private Sector Collaboration

This event was attended by big shots like B.L. Verma, TRAI Chairman Anil Kumar Lahoti, AICTE Chairman T.G. Sitharam, and Consumer Affairs Secretary Nidhi Khare. The report highlighted the views that consumer safety can only be ensured when government bodies and private enterprises appoint relevant regulatory authorities. The "Jago Grahak Jago"—a campaign reportedly launched with a new mobile application—empowers consumers through education so they can learn to navigate their way in the digital economy.

Future Outlook

Conducting consumer protection through technology and integrating it with regulations is what the Indian government is pursuing today. Thus, the efficient use of AI-enabled tools in complaint redressal helps consumers trust these ever-growing e-commerce platforms more. The draft surrogate advertising guidelines are now expected to hold businesses accountable and foster fairer practices in the market. These guidelines are sure to address contemporary issues and serve as a complete gateway to perpetual engagement for a more sustainable and consumer-friendly digital economy. Multi-pronged mechanisms for confronting changes in the marketplace may be the most influential government intervention in consumer protection measures. These initiatives will help build trust between businesses and consumers, within which a strong culture of fairness, transparency, and empowerment can thrive.