Along with the Indian economy welcoming the saga of digital revolution, the
market extends to the virtual space as well. The online sales of electronic
goods and digital services have registered an abnormal growth. This
transformation has torn us apart many researchers to what clickwrap agreements
now are omni present in the online transactions. These online contracts which
are resulted by just a click, designate some new principles for the contractual
justice and the consumer protection that we were accustomed to.
Understanding Clickwrap Agreements
Clickwrap agreements are electronic contracts a user signifies by clicking a
button or checking a box often without familiarizing themselves with the
lockbox. Examples include end-user license agreements, terms of service for
online platform operators, and privacy policies used by the various platforms.
On a global scale, the states have a variety of interpretations on the
acceptance of these contracts and as one of the basic rules of contracts, a
promise to enter into an offer, consideration, and acceptance need to be
present.[1]
In India, such contracts as a click-wrap agreements are legally covered under
the provisions of the Information Technology Act, 2000 and the Indian Contract
Act, 1872. But the enforceability of such terms is dependent on whether it is
clearly visible and agreed to upon by participating people. Striking cases e.g.,
that of Trimex International FZE Limited, Dubai v. Vedanta Aluminium Ltd, India
laid ground to the unequivocal relevance of clickwrap agreements under the
Indian law and elucidated the great importance of the clear acceptance of the
same by the user.[2]
Consumer Rights in the Digital Age
The Consumer Protection Act, 2019, which fell under its domain made a special
space for e-commerce and the digital transactions by restricting its implication
through focusing on the protecting rights of consumers online. It requires the
display, transparency, and dispute resolution of information services and goods
on the internet.
With the rise of digital space, the existing consumer rights framework faces new
challenges like privacy of data, fairness of T&C, and implementing standard
contract. Information asymmetry as well customers' relatively feeble negotiating
ability with digital products' suppliers sometimes result in consumers being
left out in the cold.
The Impact of Clickwrap Agreements on Consumer Rights
The Indian judiciary regularly has come across different instances which point
to the trouble of clickwrap contracts. For example, in the case of Ava
Merchandising Solutions Pvt. Ltd. vs. Snapdeal.com,[3] though the enforceability
of clickwrap agreement terms were scrutinized. The place more emphasis was given
on the conspicuousness of an agreement terms and the opportunities available to
the consumer in understanding the meaning of each term.
With clickwrap agreements the question of fairness also becomes a target. The
long-term and intricate content of rigid rules of the game can lead to a power /
information schism. By getting g the problem of proving the consumer's genuine
consent to TC is also of enforcement difficulties. Other issues that come in the
cross-border transactions regard the jurisdiction.
Regulatory and Legal Frameworks
Indian legal system has now started to find ways to deal with the vagaries of
digital contracts using Information Technology Act and Consumer Protection Act,
but the practice must be improved by detailed guidelines and reforms. A
comparison of the system with the existing ones like the EU which has strong
data breach protection laws including the General Data Protection Regulation (GDPR)
can teach us much. Considered reforms in click wrap scenarios might be
mandatorily transparency and simplification of the agreements with the aim of
weakening them. However, the agreements could be fair and understandable for
consumers.[4]
The Future of Consumer Rights in the Digital Marketplace
Through technological improvements, authorities could accomplish the goal of
improving consumer protection. AI is capable of security of consent in digital
transactions and contract terms inspections, at the same time, the blockchain
will ensure transparency, verifiability of the transaction and consent in the
digital space. Policymakers should study these technologies and incorporate them
into the structure of the consumer protection policies concerning the future of
digital marketplaces in which the consumers will be properly protected.
Conclusion
With the increase of click-wrap agreements in India's digital marketplace,
consumers gain an opportunity to tackle the challenges but also get a scope to
discover the potentials of consumer protection. In the light of the increasing
use of digital agreements, the necessity for the instituted and the digitized
rules that are clear, enforceable, fair and just for all describes the paramount
need. By the reference to them international best practices and adoption of tech
solutions, India will turn out to be the digital marketplace where consumer
rights are both protected and championed.
End-Notes:
- The Effectiveness of Clickwrap for Legally Enforceable Agreements, DocuSign, https://www.docusign.com/sites/default/files/Click-Legality-Whitepaper-US.pdf (last visited Apr. 8, 2024).
- Arbitration Petition No. 10 OF 2009.
- ITA No. 5528/Del/2013.
- Supra note 1.
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