Chapter Two: Emergence of Online Shopping System in Bangladesh
Chapter Three: Difficulties in Online Shopping System
Chapter Four: Legal Mechanism to Protect Online Shopping Related Rights
Abstract
Every business requires a good marketing mix to introduce, grow, and sustain in this highly competitive market of economy. At the day before yesterday marketers were rarely looking at online based marketing efforts, instead, they were just depending on conventional marketing system. With the presence of highly growing internet users, relative low cost and easy going strategies, ‘online shopping’ is also becoming so crucial for every business hub. By getting the balance of offline and online advertising right, marketing mix will help to provide everything firms need to gain leads, increase sales, improve customer retention, and improve the company profits. This study has a comprehensive perspective and provides a bird’s eye view of the online shopping practice in Bangladesh. This discussion is extended with an examination of legal available remedies in respect of online shopping irregularities. To understand the online marketing environment in the country a greater sense of the study has extended its overall views from both the customers and sellers perspectives. This study provides an effort to understand what rights are available in legal arena to protect and promote online shopping system in Bangladesh.
Chapter One: Introduction
1.1 Introduction
Since the dawn of civilization man are doing business, obviously not with the money all the time but people used barter system for a long time. Days have changed, mankind has experiences a lot of change in the civilization. Mighty Rome has fallen, Greece is now bankrupt, world has suffered two world wars but the basic of business has not changed. Now a day’s world is going too fast. People have money but they may not have the time to do shopping. A business always looks in the hole or scope in the market. So entrepreneurs took the chance and come out with the idea of online shopping.[1]
Online shopping or e-shopping is such kind of electronic commerce which allows consumers to directly buy goods or services from a seller over the internet using a web browser.[2] Consumers can easily find their choice of product by visiting the website of the retailer or by searching among alternative vendors using a shopping search engine which displays the same product’s availability and pricing at different e-retailers.[3] In recent times, online marketing has secured its place as the preferred marketing method.
In Bangladesh the concept of online shopping has added a new dimension to our day to day life. It is indeed a new idea and since the e-commerce protocol by the government, it has become much easier and popular. It is reported that every year in the country about 1.5 to 2 million people shop online.[4]
And every year online sales and purchase is increasing by 15% to 20%.[5] There are a number of free classified websites and online shopping marketplaces in Bangladesh like Ekhanei.com, Bikroy.com, Kaymu, Rokomari.com, Othoba.com etc. The IT(information and technology) ecosystem has improved a lot in our country over the last several years. It has launched 3G services, eased payment systems and introduced mobile banking. These will enhance more growth of e-trading. It is estimated that the annual value of country’s e-shopping may rise to taka 2,000 crore in 2017 from taka 200 crore. [6] Though the concept of online shopping is getting spread day by day all over the country but sometimes people have to face problems in this regard. Both buyer and seller suffer from unwanted situations. General people have not become that much expertise in this field. Service of faulty products, false or misleading advertisements, unsatisfactory service, over claiming price, unavailability of product, refusing in refund conditions etc situations often arise in the field of online shopping system. Often customers got themselves trapped by fake advertisements of product and they become victim of cheating. Being aggrieved, the party can’t even understand where to seek remedy and how to get remedy as online marketing procedure is a new concept in our country so far, until now no relevant separate law regarding this aspect has been established. Existing backdated and indirect laws are used to solve problems. In general sense, aggrieved party got damages . Laws relating to Penal code,1860; The Contract Act,1872;The Sales of Goods Act, 1930; The Special Powers Act,1974; The Bangladesh Standard and Testing Institution Ordinance,1985; The ICT Act,2006;The Consumers’ Right Protection Act, 2009; The Trade Mark Act,2009 etc are used to give remedy to the aggrieved party.
The present research proposal is all about the legal remedies available in respect of online shopping irregularities in Bangladesh. A brief statement of procedure to conduct such research is given below. The study will be a fruitful one for understanding the position of relevant laws in order to get proper remedy in this regard.
1.2 Statement of the Problem
Several times many of researchers’ have researched on online shopping system. Some study found about customer satisfaction for online shopping with statistical and economical information but there is not enough research on measuring legal remedies for both buyer and seller. There are lots of differences in strategy formulation and their application. There needs lots of adaptation when a company go online from traditional shopping system. Now a days the best retailer is based on their experiences on the web. Online consumers also increase their expectations and they are set by their experience with online retailers across the web. But consumers along with seller fall a pray to different difficulties to conduct such type of business. It is very important to know what kind of things and strategies will help to get out of such difficulties and establish their legal rights. The research aims to explore legal advice against online shopping irregularities in Bangladesh perspective considering both parties interest.
1.3 Objectives of the Study
The research will be accomplished by maintaining the following objectives –
- To find out existing challenges faced in online shopping system.
- To find out legal remedies for solving challenges concerning online shopping system.
- To analysis the application of relevant laws in Bangladesh in this specific arena.
1.4 Literature Review
In the past decade, there has been a dramatic change in the way consumers have altered their way of shopping. Although consumers continue to purchase from a physical store, consumers feel very convenient to shop online since it frees the customer from personally visiting the store. Online shopping has lots of advantages like it saves time, energy of the consumer while buying.[7]
Online shopping is one of the most widely used words in the business world. In Bangladesh during last five years online shopping has grown very fast.[8] Significant amount of research work has been done in respect of online shopping system. Many researchers has pointed out the possibilities of online shopping. At the same time many others pointed out the draw backs and provided necessary suggestion to make it more useful for the online consumers. But it is difficult to find out any documents that only highlight legal remedies in online shopping practices in Bangladesh. For having a clear idea it could be helpful to go through different studies of foreign and domestic articles, research papers, and newspaper writings.
Online retailing is a more convenient shopping channel for customers because online stores offer greater time savings. This is one of the most prime reason that people want to prefer online shopping.[9]
Ishita Sharmin, marketing manager of Bikroy.com, said that initially 15 to 20 thousand persons would log onto the site per month to buy items. Now every month about 2 million interested shoppers visits the site. Every day on average 10 thousand advertisements appear on Bikroy.com.[10]
In an article titled as “Discover the 4p’s of Internet Marketing Mix” Lee (2009)states Internet changes the way of selling products and services in comparison to traditional marketing mix. Consumers now use the internet to research and purchase products/services online.[11]
Wilson (2002) says that a business can’t rely on just one marketing approach, but must develop a whole spectrum of marketing strategies, operating simultaneously, in order to survive and flourish in a competitive world.[12]
Quazi Faruque, president of CAB(consumer association of Bangladesh) has said, consumption activities has over the time developed into a sound footing through national consumer organizations striving to aid and protect the consumers by exerting legal, moral, and economic pressure on products of goods and service providers, especially in some time of developed countries.[13]
Online shopping provides a new force of attracting more quality of sales, increasing business revenue, enhancing business profitability, improving business sustainability in the competitive global market.
1.5 Methodology
The research study is based on qualitative method. Qualitative method is more intrusive and less structured than quantitative research techniques. Such method is adopted to get an idea of the facts which influence legal approach in online shopping system. The study mainly depends on lots of books, journals, articles, newspaper, booklets, periodicals .Internet as a means of supporting weapon has enrich the study.
1.6 Utility of the study
This study will help both the aggrieved buyer and seller to have a fair idea about their legal rights in respect of online shopping system in Bangladesh. Not only that, the study will broaden the outlook of general people in this regard. It will be a helpful research to raise awareness among online consumers.
1.7 Limitation
In spite of providing a clear inside notion regarding the online marketing system of Bangladesh this study suffers from several limitations. The main obstacle to furnish this research is difficulties to collect information. There are some new shops in the social-websites. Considering such kind of situation it is very difficult for researcher to count them all. Most of the information is gathered via internet which is not possible to collect through direct source. Though people suffers a lot in seeking their legal remedies in this field a lot but due to lack of knowledge and inapplicable implication of laws very few people take initiatives. That’s why it is quite difficult to know the law implementation procedure. The whole study only deals with national perspective view rather considering its’ international approach.
1.8 Chapter outline
Chapter One – Introduction
Chapter Two – Emergence of online shopping system in Bangladesh
Chapter Three – Difficulties in online shopping system
Chapter Four – Legal mechanism to protect online shopping related rights
Chapter Five – Conclusion
1.9 Conclusion
This study is conducted to understand the existing problems and available solutions in legal arena in respect of online shopping system. Online shopping concept in Bangladesh has not spread so much but as we all know that it is one of the most widely internet user developing country, it has a good possibility in upcoming years. Government should take some initiatives to promote such business in a befitting manner. The findings of this study may be used by the existing B2C e-commerce companies as well as by the future e-commerce entrepreneurs and ordinary customers in Bangladesh to enhance it’s commercial progress. Even the customers will be benefitting if the industry considers the findings of the study.
Chapter Two: Emergence of Online Shopping System in Bangladesh
2.1 Introduction
Virtual world is changing the way of consumers shop and buying goods and services and has rapidly evolved into a global phenomenon. Many companies have started using the internet system with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets.[14] Companies also use the internet to convey, communicate and disseminate information to sell the product to take feed back and also to conduct satisfaction survey with customers.
Customers use the internet not only to buy the product online but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store.[15] Many experts are optimistic about the prospect of online business. Although most of the revenue of online transection comes from business to business commerce, the practitioners of business to commerce should not lose confidence. It has been more than a decade since business to consumer e-commerce first evolved. Scholar and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace.[16] Along with the development of e-retailing researcher continue to explain e-consumer behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions that are based on the traditional models of consumer behavior and then examine their validity in the internet context.
2.2 Beginning of E-commerce in Bangladesh
E-commerce is already quite popular in Bangladesh and it is only increasing.[17] E-commerce came at a large stage in our country in comparison to other countries of the world but it grew very quickly. E-commerce or electronic commerce is closely related to computer and internet. If we have to talk about the history of online shopping in Bangladesh then we also have to talk about the history of computer and internet in this region.
Bangladesh got it’s first computer in the year of 1964.Atomic Energy Commission of Bangladesh brought the first mainframe computer IBM-1620.[18]This model had transistor, magnetic disk and magnetic core. Computer started to become popular in the late 1980’s.The printing and publication industry embraced this technology. Throughout the 90’s the use of computer only grew. Some of the major milestone of this decade were:
Internet came to Bangladesh in 1993.Initially it was Unix to Unix Copy Protocol(UUCP) e-mail. They were replaced by internet protocol accounts in 1996.In June 1996 the government decided to allow private companies to act as Internet Services Providers(ISPs) using VSATs(Very Small Aperture Terminal).[19]
1998 the then government of Bangladesh removed all types of tax and duty from computer. Mobile phone came into the country in the 90’s. Sheba Telecom was the first mobile phone service provider but the service was very much expensive.[20]
E-commerce started in Bangladesh in the late 90’s.The earlier e-commerce sites were actually gift sites targeted towards the non residential Bangladeshis (NRB) living in abroad.[21] All the sites were based in abroad and had branches in Bangladesh. NRB would buy various products for their families or loved ones and pay in credit card. The site would then deliver the product to their family or friend in Bangladesh. From 2000 to 2008 the e-commerce sector observed slow growth. There were few e-commerce websites but there were no system of online transection which is the first condition for e-commerce. Along with that high cost of internet and lower penetration meant that few people knew about these sites. According to Bangladesh bank, payments and transections by credit cards were nearly tk11billion in June 2008; on of the lowest in the world.[22] The country had only about 400,000 credit card holders at the end of June 2009.[23] From 2008 things started to look bright as Bangladesh Bank took various initiatives including implementation of e-payment gateway. The real change came in 2009 when Bangladesh bank allowed online payment in the country thus opening up the e-commerce sector. Another major incident of 2009 was introduction of Wimax internet in Bangladesh.[24] It became quite popular in the country. The year 2013 has been an important year in the history of e-commerce in our country. This year BASIS and Bangladesh bank jointly observed e-commerce week for the first time in the country. Bangladesh bank gave permission to buy products and services online using international credit cards. Buying products and services from abroad using credit card is an important aspect of e-commerce but it was not possible for the Bangladeshi international credit card holders
2.3 Recent Developments
The number of users logging on to the internet is growing by leaps and bounds. The numbers indicate a growing sense of comfort with the use of internet for shopping. Accompanying this growth there is an increasing maturity in the way people use the internet. It’s a classical curve. Online users typically start by using e-mail; gradually move on to browsing for new, information and entertainment and finally graduate to shopping and conducting business online. Online sales have registered a huge jump and what was a concept five years ago is now beginning to hit the mainstream levels. Roughly 10 percent of the world’s population more than 627 million people have shopped online at least once, in Bangladesh it is just sprouted and beginning to perish.[25] Internet is now going beyond the simple exchange of information to a shopping paradise. This medium is far bigger than expected but many retailers and marketers are not using it to its full potential.
Bangladeshi customers are increasingly getting comfortable with online shopping and there is a higher acceptability for the concept. Bangladesh has 43641.604 thousand internet users and more is now turning to online shopping.[26]
There has been an influx of online shopping sites in Bangladesh with many companies hitching onto the internet bandwagon. Online shopping has become the latest trend among shoppers. Bangladeshis are becoming more comfortable with e-commerce. The consumer’s attitude has been evolving towards online purchases. It has become increasingly positive over the year. The attitudes that drive people to shop online, such as convenience, price comparison and choice are improving tremendously in Bangladesh.
Though a miniscule amount in the global context, the Bangladeshi online shoppers’ population would make its presence felt quite remarkably Bangladeshi businesses have also grown mature enough to move up the IT curve and they are considering business to consumer (B2C) e-commerce a viable revenue model.[27]
2.4 Some Online Shopping Sites in Bangladesh
With the inclusion of WiMAX, internet speed got a bump as well during the same time which gave a boost to the online business too.[28]In spite of this improvement, we saw some major investments during the recent years, companies like Ajkerdeal, Rokomari, Akhoni [now Bagdoom] etc. started their operation as well.[29] Classified sector along with ecom got some serious attention from the foreign investors beside the local movement. For example: Olx, Bikroy, Daraz, Kaymu etc. In 2016, Bangladesh has seen the first ever and now the biggest pure ecommerce platform GHOORI from a local company called Chorki Limited.[30] Ghoori started their operation and now they have more than 3000 small merchants under a single integrated platform.[31] The concept of online marketplace was introduced in 2012/13 by Akhoni and Ajkerdeal. From 2015 onwards Kaymu and Daraz is disrupting the market by investing a huge amount of money in marketing for quick sales, which eventually is proven a wrong step and ultimately Kaymu merged with Daraz in 2017.[32]
Rokomari.com is another big inclusion in online market place in 2013. They have successfully implemented a proven business model[amazon] and sold books worth of 1 crore in their first year of operation.[33] Now Rokomari is one of the top names in the industry and started expanding their business in other categories. Meanwhile bikroy.com has shown a true class and distinguished themselves from other front runners by becoming the largest marketplace for buying and selling any consumer item. Unfortunately, due to huge investment pressure and lack of vision our own
home grown classified site CLICKBD lost the momentum and lose the race eventually.
It has been seen tremendous development in delivery industry during this period. Many companies opened just to serve ecom merchants. Food delivery services like Hungrinaki, Food panda started their operation in 2013 [might be 2014] and doing amazing at present.[34] Last but not the least, we have sheba. xyz, who are shaping the service industry using online channels. Nonetheless, Chaldal.com redefined grocery shopping for us. They are the only company who has silicon valley investment and we hope they will change the shopping experience as a whole for our country within a short span of time.
Big FMCG like Pran started their e commerce journey in 2016 as othoba. Not only that, Edison group started Pickaboo and they are now in the top three ecom sites in Bangladesh. Brands like BTI, Transcom, ACI [Swapno], Epyllion, Meenabazar etc. are expecting to launch their online sales center this year.[35]
2.5 Factors that Boost Online Shopping in Bangladesh
Several factors are actively responsible for the rapid growth of online shopping system in Bangladesh. Some factors are stated below:-
2.5.1 Price Competition : No matter what product customer may be looking for, there can be extreme variations of prices for products. It varies tremendously from one store to another. Online shopping system can help in this regard. No matter if it is a local shop or an international one, by shopping online, anyone can check his/her device and use websites to compare the prices of products.[36] Many times customer will find their products cheaper online.
2.5.2 Varieties of Option: Online shopping allows customer to browse through hundreds of items and they are more likely to find things in their size when shopping online. And buyer don’t have to worry about the dreaded dressing room. Most online retailers make returning an item easily, so customer don’t have to haggle with a salesperson to try to return or exchange an item.[37]
2.5.3 Save Money: Online stores don’t have to worry about real estate, so the money saved can result in lower prices for shoppers. Online shopping sites also offer great discounts and offers, which can save you even more.[38]
2.5.4 Shop at Anytime of the Day: Internet grants buyer to buy at whatever point of the day, even outside normal working hours. Shopping on the web licenses buyer to manage their purchases paying little personality to the time.[39] Regardless of whether they require a super-midnight or at a youthful hour in the morning to make a go at shopping.
2.5.5 Snappy Transection: When individuals get its elements and administrations they can pay effectively. Conversely, individuals can purchase and offer their items effectively with a brisk online exchange.[40]
2.5.6 Shopping Without Pressure: In physical stores, the sales representatives try to influence the buyers to buy the product. There can be some kind of pressure, whereas the customers are not pressurized in any way in online stores.
2.6 Conclusion: The dependency of online for all short of business is significantly increasing. Potential opportunities have been created for small entrepreneur. It is not always possible to apply real world marketing practices to online marketing. Online marketing tends to be an entirely different challenge. Strategic online marketing is necessary to success on web. Lack of knowledge, improper implication of methods sometimes hinder online shopping system.
Chapter Three: Difficulties in Online Shopping System
3.1 Introduction
Online retailing is growing at an astonishing rate, with online sales now accounting for around one quarter of the total retail market. Retailers who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online.[41] The invention of online shopping system in our country allows people to buy things from the comfort of their homes. No more travelling to multiple stores to find the right product; no more having to deal with over-enthusiastic sales persons; no more standing in long lines at the checkout counter.[42] This is extremely handy for people who work long days or have to take care of their children. The e-commerce boom has certainly changed the way we shop for the better.[43] But, like everything else, the world of online shopping is not all roses. Despite all the efforts of e-commerce companies to alleviate them, there are a few problems that customers still have to face while shopping online. Like as faulty products, unsatisfactory services, false and misleading advertising or trading, gift vouchers and laybys, scams and online safety, return policy, hidden charges etc. In the context of Bangladesh, there are no specific rules and code which will explain how the e-commerce will pursue the contract with customer.
3.2 Major problems
Online Shopping is undoubtedly on an upward trajectory. But, here’s the kicker: While 43% of sales are influenced by online, online sales account shows that only about 9% of retail.[44] It’s still an impressive figure, but it also shows that there’s huge room for improvement. There are still groups of online shoppers who refuse to buy online and their great products, competitive prices, or easy check out have little to do with it. Some major drawbacks of this system are briefly discussed below –
3.2.1 Quality Issue
The biggest problem while buying things online is that buyer have no guarantee of a product’s quality. Reviews are not always reliable and all the research can’t assure buyer of a product’s quality; fraudulent sellers who intentionally mislead customers to increase sales are the prime reason for faulty/sub-par products being sold online. With the volume of goods e-commerce companies handle these days, it can be quite difficult for them to conduct quality checks on each and every one of the products they’re selling. Additionally, the issue of getting the correct size remains a serious drawback for buying clothing and footwear online. Sizes vary from brand to brand, and since you can’t try out the products before buying them, selecting the size is always a gamble.[45]
3.2.2 Delivery and Logistics
One predicament that constantly turns up while shopping online is when the order will be delivered. While all e-commerce sites have order tracking systems for their customers, they aren’t always accurate. Delivery personnel often turn up at our homes when we’re at work or out somewhere as there’s no way to fix a particular time slot for the delivery to take place. This same issue exists while returning products. Another problem is that the vast majority of our population which lives in rural areas is unable to shop online because not all e-commerce sites provide delivery services to their locations.[46]
3.2.3 Digital Payment Failures
Whether a customer is paying by credit/debit card, net banking, or one of the several digital wallets that exist today, the failure of digital payments always looms overhead while making online transactions.[47] A faltering internet connection or a technical glitch often results in the payable amount being debited from a customer’s account without being credited to the selling party. And retrieving this amount is anything but a quick process; one has to inform the site and then wait around 7-10 days before the amount is refunded to their bank accounts. But this situation is steadily improving as the sector is focusing more on cashless transection and customers are getting more informed about making payments online.
3.2.4 Additional Charges
Some times has it happened that customer has spotted a great deal on a product and when he/she,re one click away from purchasing it customer noticed an additional shipping charge. This is commonplace on all e-commerce sites when buyer’s order amount isn’t high enough to qualify for free shipping. And even when it is, sometimes these shipping charges are added on each individual product (if you’re buying multiple products of course) and not the collective order.
3.2.5 Unclear Return and Guarantee Policy
Since buyer have no idea of product’s quality until they hold it in their hands, returning things bought online is quite common. Unless customer buying from one of the established online shopping site, it’s important to go through the return policy while making a purchase. But most sites have vague return policies that can leave buyer with a low-quality product and no way to return it. The same applies for guarantees, as most sites don’t clearly mention what the policy is for a product and then refuse to carry out replacements if you receive a damaged product.[48]
3.2.6 Lack of Security
Cyber security, or more precisely the lack of it, is a major problem on the internet today. Online shopping sites record important customer data like name, phone number, address, and bank details. If these sites don’t implement stringent cyber security measures, customer data is at risk of falling into the wrong hands who can then wreak havoc on their bank account. Most of the big players in online shopping certainly have the best-in-class security measures to protect their customers’ details, but the same can’t be said about the countless smaller sites who may not have the expertise to do so.[49]
3.2.7 Website Costs
Planning, designing, creating, hosting, securing and maintaining a professional online shopping website isn’t cheap, especially if seller expect large and growing sales volumes.[50] This is surely a huge burden over a seller.
3.3 Conclusion
Purchasing goods from the comfort of customer’s own living room certainly is more convenient than actually driving to a store, while offering a virtually unlimited array of choices and the ability to compare prices. Though online payment and security technology have come a long way, customers still may experience problems with online shopping from time to time. If e-commerce sites fix these issues they will certainly improve customer’s expectation, experience and hence generate more sales.
Chapter Four: Legal Mechanism to Protect Online Shopping related Rights
4.1 Introduction
Now-a-days people relying on growing online shopping system due to daily busy life. Products and services like dress, shoes, food, cosmetics, medicine, electronics, home appliances, car, house etc. can be found on web to purchase. Availability and multiple options to choose the desired product out of hundreds of required product and having the facility of home delivery service have made people like to shop online rather to go shop physically.[51] In spite of its’ convenience online shopping system has some loopholes. People often face problems during shopping from online sites. Not only buyer, even seller has to meet up with some unwanted situations. In the context of Bangladesh, there are no specific rules or code which will explain or direct how the online shopping rights will be protected. There is no individual law to promote such kind of rights. Aggrieved people are remedied through using existing legal system.
4.2 Applicable Laws for Online Shopping System
The Penal Code,1860; The Contract Act,1872; The Sale of Goods Act,1930; The Special powers Act,1974; Standard of Weights and Measures Ordinance, 1982; The Bangladesh Standard and Testing Ordinance,1985; Consumer Protection Act,2009; The Trade Marks Act,2009 etc. laws are used to solve legal issues of online shopping system in Bangladesh. The application of these laws to provide legal remedies to the party in online shopping purpose is briefly stated below-
4.2.1 The Contract Act, 1872
Online shopping system involves contract between buyer and seller. The traditional terms and conditions of a contract is applied to these online contracts but with extra complications. To elaborate, the parties involvement may have never met and may sometimes not even realize that they are contracting and they may reside in different countries as well. When a buyer clicks on an ‘I Agree’ or ‘Purchase’ button on a website they are effectively agreeing to a contract.[52] Breach of a Contract occurs when one party fails to perform his or her obligations under the contract or intimates that they will not perform them. The aggrieved party can seek compensation for loss or damage caused by breach of contract.[53] Compensation can claim for failure to discharge obligation resembling those created by contract.[54] Although the existing Contract Act does not include the word ‘online shopping’ but this law will be applicable to mitigate disputes based on online shopping.
4.2.2 The Penal Code, 1860
The Penal Code 1860, one of the oldest statutes of the land contain some provisions ensuring the buyer’s right which can be applied in respect of online shopping irregularities. Buyer can seek remedy for offences relating to weights and measures under this law. Sometimes it is seen that seller try to get more financial profit in their business by deceiving buyer. They take the tricky policy to cheat the buyer by delivering products in less quantity than the actual stipulated measures. Offences relating to fraudulent use of false instrument for weighing, fraudulent use of weight or measure, being in possession of false weight or measure, making or selling false weight or measure have been made punishable both in terms of fine and imprisonment.[55]Applying such provisions of law the rights of online customers to get their product in stipulated quantity can be safeguarded.
4.2.3 The Sale of Goods Act, 1930
The Sale of Goods Act,1930 governs the traditional contract relating to sale of goods. It has certain peculiar features such as, transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods etc. Certain difficulties relating to online shopping system can be mitigated through liberal interpretation of this law. According to this law if the seller delivers any goods less in quantity as he contracted to sell, the buyer may reject the product.[56] Even if the seller wrongfully neglects or refuse to deliver any product the buyer may sue for damages for non delivery.[57] For breach of any warranty by the seller the buyer can sue for damages or reduce the price of the goods, on the otherhand if any condition is breached the buyer may reject the goods.[58] Through the statute of sale of goods act, the rights of an online seller can be ensured. Here if a buyer fails to take delivery of the products and fail to pay the price wrongfully then the seller can sue for recovery of price and damages.[59]
4.2.4 The Special Powers Act,1974
In order to penalize for adulterated food, drinks, dugs or cosmetics the law of special powers act,1974 can be enforced. According to this act any seller who adulterates any article of food or drink to sell such item; or sell, offer, expose any product which has been rendered or has become noxious or in such a condition which is unfit for health or adulterates any drug or medical preparation and sell them to buyer will be punished with death penalty or with life imprisonment or with rigorous imprisonment for fourteen years.[60] The offender will also be charged with fine.[61] Not only that, if a seller adulterates or sell or offers any cosmetic products (like hair oil, toilet soap) for sale which is harmful for skin, complexion or any part of body shall be punished with rigorous imprisonment for a term which may extend to five years and with fine.[62]These same provisions will be applicable in respect of online shopping system as well parallely with traditional shopping system
4.2.5 The Standard of Weights and Measures Ordinance, 1982
This law was enacted to make provision for the establishment of standards of weights and measures based on the metric system and units of measurement and for matters connected therewith or incidental thereto. The law inter-alia, provides penalty for use of nonstandard weights or measures which may amount to three thousand taka or six months of imprisonment.[63] This law can be used in order to give remedy in respect of online shopping system too where products are found below standard from weights and measures.
4.2.6 The Bangladesh Standard and Testing Institution Ordinance,1985
The BSTI Ordinance provides for the establishment of an institution for standardization, testing, metrology, quality, control, grading and marketing of goods. Section 30-32 protects certain rights of consumers by bringing some offences like improper use of standard mark, disregard of export or sale restrictions within the ambit of law. Such ordinance can be used to control online shopping problems in a befitting manner.
4.2.7 The Trade Mark Act, 2009
Section 71-78 of the Trade Mark Act are designed to suppress certain unfair trade practices relating to trade marks which have the tendency to deceive consumers. Remedies can be sought under these provisions against falsifying and falsely applying trademarks ,selling and using false trade names, misrepresentation of trademarks etc. Sometimes many online sites try to cheat buyer by selling replica products or fake products using the name of a famous brand. Usually Seller used original trade marks upon cheap quality products to earn more profit. Such kind of offences can be remedied though the Trade Mark Act,2009.
4.2.8 The Consumer Protection Act,2009
This Statute provides protection of consumer rights and also to prevent any acts against consumer right and interest and other relevant issues. The Act mainly deals with the obligations of “economic operators” and products safety. It enjoins state organs to punish the offenses of economic operators who violate consumer rights and interests. It provides for various actions to be taken by the respective ministries against the production of products or services that are likely to induce grave or imminent dangers.[64] The CRPA, 2009 also sets out comprehensive procedures to be followed by inspection agents to ensure the quality and safety of products (goods and services). It also allows for the establishment of a specialised institution to be in charge of fraud repression and inspections of imported and exported goods.To important features of this Act is –
- establishment of National Consumer Rights Protection Council and National Consumer Rights Protection Directorate
- provision for consumer education and concurrent remedy of civil and criminal redress
According to this Act complaint can be filled against the seller of the product or the service provider. Here seller of the product includes the producer, manufacturer, supplier and wholesaler or retailer of the product.[65] Here the following grounds are taken under consideration to file a complaint –
- When any product, service or medicine is sold or being sold at a rate more than the fixed rate,
- When any adulterated product or medicine is sold or being sold knowingly,
- When any food product mixed with materials injurious to health is sold or being sold,
- Using of false and untrue statements in advertisement in order to deceive the buyers,
- Non-delivery or supply of any product or service after payment,
- Providing under weight or short measured product,
- Use of such weight, instrument for weighing or yardstick tape by any seller which displays less than the perfect weight or measure,
- Manufacturing or producing the false medicine,
- When any expired medicine or product is sold or being sold.
- When any defective product or unsatisfactory service is provided.
Two types of solutions can be obtained in case of offenses against consumer rights. They are – criminal remedy (imprisonment, fine) ,civil remedy (obtaining compensation).The CRPA, 2009 is highly recommendable for the protection of online shopping rights. Here buyer can get relief in form of exchange of defective goods, compensation for injury, reimbursement of product price, imposing fine etc. Section 40-51 of the act can be used to give remedy to the aggrieved buyer of online shopping system of Bangladesh. In this case broader interpretation of the act can include the term ‘online shopping’.
4.2.8 Information and Communication Technology Act,2006
Online shopping system sometimes contain cyber threat. At the time of shopping online sites record customer’s necessary information like name, address, phone number, bank details, electronic information etc. It paves a way to hamper buyer’s security. ICT Act,2006 can help the suffered buyer to get rid out of this problem. The purpose of this Act is to guarantee the legal security of documentary communications. It provides for appropriate punishment for offences relating to computer or computer system. The Act states some activities as cyber crime such as-illegal access, illegal data collection, intentionally obstructing computer system, spamming and unwanted mails etc.
4.3 Conclusion
There is no specialized Code or Rule to establish online shopping rights. Traditional existing laws are not amended in such a way which may include the online shopping difficulties directly. Consequently these existing laws are indirectly questionable in order to mitigate such problem. This is surely a huge lacking to promote such kind of business in national arena.
Chapter Five: Conclusion
5.1 Findings
- There is no particular law to provide legal remedies in respect of online shopping system in Bangladesh.
- Traditional backdated laws are used to provide solution to the disputes relating to online shopping matters.
- Aggrieved party usually do not feel any interest to establish their rights through judicial procedure.
- Parties relating to online shopping disputes find legal procedure more complicated rather than they mutually mitigate difficulties.
- Separate specific provision relating to online shopping issues should be included in the existing provisions of the Contract Act,1872 and the Sale of Goods Act,1930.
- The laws of Penal code1860 and Special Powers Act, 1974 should by strictly implemented by the legislature to safeguard online shopping related rights.
- Separate provision relating to online shopping should be incorporated in the Standard Weights and Measures Ordinance,1982 to ensure stipulated quantity of products to the customers.
- Provision relating to investigation of original product’s trademark in online shopping sector should be incorporated specifically in the Trade Mark Act,2009.
5.2 Suggestions
As a new approach, online shopping has gained much popularity all over the world. Online Shopping System helps in buying of goods, products and services from online by choosing the listed products from websites. In Bangladesh the number of online shopping users is increasing rapidly. In order to promote this sector in wide area awareness among customers relating to their rights should be increased. Government should ensure more promotional works to develop this shopping procedure. Complexity in legal arena to protect online consumers rights should be removed. Traditional laws should be amended in broader aspects. A specific law ensuring online shopping related rights with the compilation of all required solution should be made by the legislature. Existing laws, specifically Contract Act, Sale of Good Act and Consumer Protection Act must be amended to cope up with online shopping difficulties.
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[3] Ibid
[4] Shah,J.,2014.Prothom Alo ,Bangladesh[online]. Available at: http://en.prothom
alo.com/Bangladesh/news/57411/online-shopping-increases
[5] Shah,J.,2014.Prothom Alo ,Bangladesh [online].Available at: http://en.prothom
alo.com/Bangladesh/news/57411/online-shopping-increases
[6] Saha,S.2014. The Daily Star.[online] Available at: http://www.thedailystar.net/the-future-of-shopping-is-online- 43629
[7] Dale, B.G., Zairi, M., Wiele, A. van der & Williams, A.R.T. (2006).Quality is dead in Europe – Long live excellence: True or false? In D. Mayle (Ed.), Managing Innovation and Change (pp. 55-64). London: Sage Publications
[8] Hoque,M.E 2014[online], University of Boras, Available at: http://bada.hb.se/bitstream/2320/13535/1/2013MAGIO3.pdf
[9] Ibid
[10] Shah,J.,2014. Prothom Alo,Bangladesh [online].Available at http://en.prothom alo .com/Bangladesh/news/57411/online-shopping-increases
[11] Lee, Richard (January, 2009): “Discover the 4 P’s of Internet Marketing Mix”, Available at :
[12] Wilson, Dr. Ralph F. (2002): “Developing an Effective Marketing Mix”, Web Marketing
Today, Issue 111, April 11, 2002
[13] Booklet on consumer protection in Bangladesh, p-45
[14] Fatah-ul-islam, 2015.Slide share.[online] Available at: https://www.slideshare.net/limonfnb/e-shopping-in-bangladesh
[15] Ibid
[16] Ibid
[17] Ibid
[18] Adhar,O., 2012.Computer in Banglades.[online] Available at: https://www.scribd.com/doc/114033918/computer-in-bangladesh
[19] Rahman,H., 2001.Sustanable development networking programme.
Available at: http://www.sdnbd.org/sdi/issues/IT-computer Revolution A Millennium Oppportunity.htm
[20] Fatah-ul-islam,2015. Slide share.[online] Available at: https://www.slideshare.net/limonfnb/e-shopping-in- bangladesh
[21] Anon.,n.d.e-cab.[online] Available at:http://e-cab.net/resource-center/Bangladesh-e-commerce-sector/
[22] Ibid
[23] Ibid
[24] Ibid
[25] Fatah-ul-islam,2015. Slide share.[online] Available at: https://www.slideshare.net/limonfnb/e-shopping-in- bangladesh
[26] Ibid
[27] Ibid
[28] Moslem,R.,2017.Linked in.[online] Available at: https://www.linkedin.com/pulse/brief-history-e-commerce-bangladesh-rashed-moslem
[29] Ibid
[30] Ibid
[31] Ibid
[32] Ibid
[33] ibid
[34] Ibid
[35] Supra note-28
[36] Hosen,Z.,n.d. BDSHOP.com Blog.[online] Available at http://blog.bdshopcom/online-shopping-bangladesh/
[37] Anon.,2016. Online shopping BD.[online] Available at: https://onlineshoppingbd.org/online-shopping-benefits-bangladesh/
[38] Ibid
[39] Anon,2017.Buy mobile.[online] Available at: https://www.buymobile.com.bd/blog/2017/02/13/online-shopping-site-bangladesh/#.WWoVCDVLfMw
[40] Ibid
[41] Anon.,n.d. NIBUSINESS INFO.CO.UK. [online] Available at: https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-online-retail
[42] Mittal,T.,2017. Yourstory.[online] Available at: https://yourstory.com/2017/04/common-problems-online-shopping/
[43] Ibid
[44] Anon.,2014. Guided selling.org.[online] Available at: http://www.guided-selling.org/solve-the-5biggest-problems-of-online-shoppers/
[45] Supra note-42
[46] Ibid
[47] Ibid
[48] Mittal,T.,2017. Yourstory.[online] Available at: https://yourstory.com/2017/04/common-problems-online-shopping/
[49] Mittal,T.,2017. Yourstory.[online] Available at: https://yourstory.com/2017/04/common-problems-online-shopping/
[50] Anon.,n.d. NIBUSINESS INFO.CO.UK. [online] Available at: https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-online-retail
[51] Tamanna, T.,2017.The Daily Star.[online] Available at: http://www.thedailystar.net/law-our-rights/concerns-online-purchase-1353421
[52] Legal services commission.[online] Available at: http://www.lawhandbook.sa.gov.au/ch102s01s04.php
[53] Siddique,D.,2012. Law of Contract. Dhaka: Kamrul Book House. sec-73
[54] Ibid
[55] A.R.M.Borhanuddin,2009. The Penal Code,1860.2nd ed, Dhaka:Titu publication; sec: 264-267
[56] Mitra,A.k.s.a.j.k.,1956. Commercial Law and Industrial Law.25th ed.kolkata: The world press private ltd; sec-37(1)
[57] Ibid; sec-57
[58] Ibid; sec-59
[59] Ibid; sec-55,57
[60] Special Powers Act,1974. [online] Available at:http://bdlaws.minlaw.gov.bd/print section all.php?id=462;
sec-25c(1)
[61] Ibid; sec-25c(1)
[62] Ibid; sec-25c(2)
[63] The standard of weights and measure ordinance,1982.[online] Available at: http://bdlaws.minlaw.gov.bd/print sections all.php?id=624: sec-32
[64] Khan,S.m.a.A.h.,2014. The Daily Star.[online] Available at: http://www.thedailystar.net/protecting-consumer-rights-20998
[65] The Consumer Protection Act,2009.
Available at: http://www.dncrp.gov.bd/dncrpold/imgages/contents/whc5301cc0065d0e.pdf; sec-2(16)
Arifa Afroz Smriti
Latest posts by Arifa Afroz Smriti (see all)
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