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- Information and communications technology
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Information and communications technology
Key Features of the Rules. Issues and Analysis. In addition, Rules framed under the Finance Act, govern qualifications, terms of service and selection of members of the National Commission. Authorities established under the Act. The Act establishes various bodies including a regulator, and adjudicatory bodies and advisory councils at the district, state and national level.
The central government will determine the qualifications, method of appointment, term, and removal of the President and members of the Commissions. The Draft Rules prescribe the composition, qualifications, method of appointment, term and removal of the members of these bodies. Table 1: Authorities established under the Act. District Commission. Jurisdiction on disputes up to one crore rupees. State Commission. Original jurisdiction of one to ten crore rupees and appeals from District.
National Commission. Original jurisdiction above ten crore rupees and appeals from State. Central Consumer Protection Authority. Central Consumer Protection Council. Provisions on e-commerce and direct selling. Provisions on mediation. Composition of National Commission and its selection body violate SC judgements.
The Act sets up Consumer Disputes Redressal Commissions consumer courts at the district, state and national level, as quasi-judicial bodies for adjudication of consumer disputes. It also permits the central government to notify the method of appointment of the members of these consumer courts.
The Draft Rules specify the composition of the District and State Commissions and the method of appointment of the President and Members of these Commissions. The Tribunal Rules replace an earlier set of rules in which were struck down by the Supreme Court in The Supreme Court had examined various aspects of the Rules and noted that the Rules did not comply with previous Supreme Court decisions that stressed on securing judicial independence in the composition of the tribunal, in the selection committee appointing the tribunal members and in the security of their tenure.
The composition of the National Commission, tenure of its members and the method of their appointments may violate the judgement of the Supreme Court. We discuss these below. The term of the President and Members of the National Commission may be too short. The Rules state that the President and Members of the Commission will have a term of four years or till they reach 70 years of age for the President and 65 years of age for other members , whichever is earlier. Under the Rules, members of the National Commission were to be appointed for three years.
The Supreme Court struck this down and noted that a term of three years is too short, and by the time members cultivate adjudicatory knowledge, experience and efficiency, their term may be over. In doing so, it relied on an earlier judgement of the Court given in the context of the National Company Law Tribunal where the Court had recommended a term of five or seven years for the members of the Tribunal.
Inclusion of technical members in the national, state and district commissions. Under the Act, the National Commission is headed by a sitting or retired Supreme Court Judge or Chief Justice of a High Court and consists of a total of four to eleven members, who could be technical or judicial. One of the roles of the Commission is to hear appeals from orders of the State Commission on substantial questions of law. The composition of the Commission may contradict the principles used in a Supreme Court judgment regarding the composition of the National Tax Tribunal.
This case was re-affirmed by the Supreme Court while striking down the Tribunal Rules. The District and State Commissions also comprise technical members with expertise in certain areas such as economics, business, law, or public administration.
The Supreme Court has held that technical members could be appointed to tribunals only if technical expertise is essential and not otherwise, to ensure the independence of tribunals. However, note that similar provisions for technical members in the District and State Commissions existed in the Consumer Protection Act, which this Act replaces. Executive involvement in appointment of Commissions. Under the Tribunal Rules, members of the National Commission were to be appointed by a selection committee comprising four government nominees and one judicial member.
The Court referred to its earlier judgements where it had stressed on the primacy of the judiciary in deciding judicial appointments, to secure its independent functioning. In the Rules, the selection committee for the National Commission comprises two judicial members and two government appointees.
However, the Rules do not contain any provision on how a deadlock will be resolved. As it does not specify that the judicial member will have a casting vote in the case of a deadlock, this may violate the judgement of the Supreme Court. Some issues with provisions of the Draft Rules on e-commerce. The Draft Rules define e-commerce entities and outline the obligations of e-commerce entities and sellers in relation to sale of goods and services through such entities.
No distinction made between marketplace-model and inventory-model e-commerce entities. The Draft Rules specify various obligations of e-commerce entities and sellers in relation to goods and services. E-commerce entities are defined to include inventory models where the entity owns the inventory and sells it to consumer directly through its platform , marketplace models where they only act as intermediaries for facilitating transactions between buyers and sellers or a combination of the two.
However, while specifying the obligations of e-commerce entities, the Rules do not make a distinction between the two models. As a result, it is unclear which obligations apply to marketplace models and which apply to inventory models. For example, the Draft Rules state that e-commerce entities have the duty to not influence the prices directly or indirectly of products and services and to maintain a level playing field.
These provisions prohibiting influencing of prices will not be relevant to an inventory model since in this model the e-commerce entity is also the seller of the product and must have the freedom to take decisions on pricing for example, setting the price for its products. Again, the provisions on providing a level-playing field to all sellers will not apply to a pure inventory model where the e-commerce entity is the only seller on the platform.
Certain obligations of e-commerce entities may be applicable to sellers of products and not to marketplaces. The Draft Rules specify various obligations of e-commerce entities.
These include the duty to not influence the prices directly or indirectly of goods and services, to display the terms of contract with a seller or service provider, and to take down listings of counterfeit products.
However, the Draft Rules also require e-commerce entities to ensure that advertisements for marketing of goods and services are consistent with their actual characteristics and usage conditions. It may be argued that these obligations should apply only to the seller of the product and to inventory models since the seller owns the product and is expected to provide details of the product including its characteristics and usage conditions while listing the item for sale on the platform.
Pure marketplace models only provide a platform and do not control the quality of the product. Note that the Information Technology Act, and its Rules provide immunity for intermediaries from liability for hosting or transmitting third party information; this would cover e-commerce marketplaces such as an auction website.
Also, note that under the Draft Rules, consumers have remedies against the e-commerce entity in cases where the delivered product does not conform to its description. If a product does not conform to the advertised product characteristics, the e-commerce entity is liable to accept return of goods and refund money within 14 days. Further, the Act allows the Central Consumer Protection Authority to impose penalties on the issuance of a false or misleading advertisement.
Disqualification of members of the regulator related to marriage. The Act sets up the Central Consumer Protection Authority to promote, protect, and enforce the rights of consumers. The Authority will be headed by a Chief Commissioner and other Commissioners. The central government will decide the qualifications, method of appointment, term, and removal of the Chief Commissioners and Commissioners of the Authority by rules.
The Draft Rules provide certain grounds for disqualification from being appointed as a Commissioner. The Rules further states that the disqualification will not apply if the central government is satisfied that the marriage is permitted under the personal laws of the two parties involved and there are other grounds for doing so. It is unclear why the grounds for disqualification of a Commissioner have been linked to the status of his marriage.
Note that similar grounds for disqualification do not apply to members of the Consumer Protection Councils the advisory bodies or the Consumer Commissions.
For example, disqualification of members of the Consumer Commissions are limited to grounds such as conviction for offences involving moral turpitude or dismissal from government service. Lack of clarity in definitions in the Draft Rules and drafting issues. The Draft Rules specify various obligations of e-commerce entities and sellers of various goods and services. It is not clear why the Draft Rules refer to a different definition of the term. Note that this difference in definition also exists in the direct selling rules.
Further, the Draft Rules on e-commerce and direct selling specify that every e-commerce entity or direct selling business which intends to carry out business in India is required to comply with certain conditions. One of these conditions requires that promoters or key management personnel of a company should not have been convicted of any crime punishable with imprisonment in the last five years.
This may result in lack of clarity in the application of the rule. For example, Rule 12 of the Draft Rules refer to inquiries for misbehavior or incapacity by a Committee constituted Rule 9 2. However, Rule 9 2 contains provisions on vacancies and does not refer to an inquiry committee. Provisions for constitution of an inquiry committee are contained in Rule 11 2 , in the context of removal of the Commissioners. Further, Rule 4 1 of the Draft Rules refer to the appointment of five central and five regional Commissioners to the Authority.
Gandhi v. Union of India, 11 SCC 1. Union of India, 10 SCC 1. The opinions expressed herein are entirely those of the author s.
PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.
PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it. Education Graduation :. Education Post Graduation :.
Parliament States Primer. Parliament States. State Assembly. Draft Rules under Consumer Protection Act, Some of these cover the composition of bodies set up under the Act.
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Information and communications technology ICT is an extensional term for information technology IT that stresses the role of unified communications  and the integration of telecommunications telephone lines and wireless signals and computers, as well as necessary enterprise software , middleware , storage and audiovisual, that enable users to access, store, transmit, and manipulate information. The term ICT is also used to refer to the convergence of audiovisual and telephone networks with computer networks through a single cabling or link system. There are large economic incentives to merge the telephone network with the computer network system using a single unified system of cabling, signal distribution, and management. ICT is an umbrella term that includes any communication device, encompassing radio, television, cell phones, computer and network hardware, satellite systems and so on, as well as the various services and appliances with them such as video conferencing and distance learning. ICT is a broad subject and the concepts are evolving. Theoretical differences between interpersonal-communication technologies and mass-communication technologies have been identified by the philosopher Piyush Mathur. The phrase "information and communication technologies" has been used by academic researchers since the s.
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Key Features of the Rules.
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