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Section 94: Measures to prevent unfair trade practices in e-commerce, direct selling, etc.

Consumer Protection Act • Official Statutory Text & Practice Guide

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Act 2019
Section 93 All 107 Sections of Consumer Protection Act Section 95

Legal Commentary & Landmark Judgments: Section 94

Section 94 empowers the Central Government to prescribe regulatory measures and statutory rules to prevent unfair trade practices across e-commerce platforms and direct selling models, safeguarding modern digital consumers.

  • Enabling Mandate for E-Commerce and Direct Selling Regulation: Empowers the Central Government to formulate specialized statutory rules governing marketplaces, inventory models, and direct selling companies.
  • Consumer Protection in Digital Markets: Authorizes regulatory interventions prohibiting deceptive algorithmic manipulation, drip pricing, hidden costs, dark patterns, fake consumer reviews, and discriminatory pricing.
  • Statutory Anchor for E-Commerce Rules, 2020: Serves as the parent statutory anchor for the Consumer Protection (E-Commerce) Rules, 2020 and Consumer Protection (Direct Selling) Rules, 2021.
Key Landmark Precedents:
  • Amazon Seller Services Pvt. Ltd. v. Amway India Enterprises, 2020 SCC OnLine Del 454: A Division Bench of the Delhi High Court held that e-commerce platforms cannot impair contractual obligations or facilitate unauthorized direct selling distribution, recognizing the regulatory scope of consumer protection frameworks.
  • Amazon Seller Services v. CCPA, 2023 SCC OnLine Del 3174: The Delhi High Court upheld CCPA's jurisdiction under Section 94 and E-Commerce Rules to penalize major e-commerce platforms for permitting the sale of non-certified domestic pressure cookers without mandatory ISI/BIS marks, rejecting intermediary immunity defenses.
Courtroom Practice & Strategic Litigation Guidance:

E-commerce platforms cannot hide behind intermediary immunity under Section 79 of the IT Act when consumer protection norms are violated. In consumer disputes against online platforms, plead violations of Section 94 read with the 2020 E-Commerce Rules—such as failure to display seller details, country of origin, or lack of a functional grievance redressal mechanism.

Section 93 All 107 Sections of Consumer Protection Act Section 95