The Indian government has issued guidelines to retailers, highlighting that they should not collect customers' mobile numbers without their explicit consent during the sale of any products or services. It has been made clear that making the provision of mobile numbers a mandatory requirement for making a purchase is considered unfair and a violation of consumer rights under the Consumer Protection Act, 2019. The government strongly urges retailers, including major industry associations, to discourage their members from engaging in such practices and emphasizes that the provision of mobile numbers should not be obligatory for completing a sale.
In the order D.O. No. J-24/34/2023-CPU Dated: 26th May, 2023, it is stated that
The Department has been made aware of numerous complaints received through the National Consumer Helpline (NCH) regarding retail stores forcing customers to provide their mobile numbers before purchasing products. In many cases, consumers who refused to provide their mobile numbers were denied their rights under the Consumer Protection Act, 2019. Insisting on collecting mobile numbers as a mandatory requirement during sales, even when consumers choose not to share them, is a violation of their rights and qualifies as an unfair trade practice under the Act.
Consumer rights, as defined by the Act, include the right to seek redress against unfair trade practices, restrictive trade practices, or unscrupulous exploitation of consumers. Unfair contracts and unfair trade practices encompass imposing unreasonable charges, obligations, or conditions on consumers that put them at a disadvantage, as well as disclosing personal information provided in confidence, except as permitted by law.
It is important to note that under Section 72-A of the Information Technology Act, 2000, disclosing personal information, including mobile numbers obtained during a sale, without the person's consent or in violation of a lawful contract, is a punishable offense. By imposing a mandatory requirement to provide mobile numbers, consumers are often forced to share their personal information against their will, leading to unwanted marketing and promotional messages from retailers.
Restricting consumers from purchasing products or hindering their ability to return, exchange, refund, or address grievances solely based on the non-disclosure of their mobile numbers constitutes unfair trade practices under the Act. Unless there is a breach of other terms and conditions of the sale, simply not sharing a phone number cannot be a valid reason to deprive consumers of their rights under the Act.
The Department views this situation seriously and urges retailers to be advised that consumers' mobile numbers should not be collected without their explicit consent during the sale of goods or services. Making the provision of mobile numbers a mandatory requirement for sale should be avoided.
COPY OF THE ORDER -
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