Protection of Consumer Rights in Digital Marketplace in Pakistan: A Critical Review of Current Policies and Future Guidelines

Abstract

The rapidly growing e-commerce sector of Pakistan faces significant challenges vis a vis consumer protection, including the absence of robust infrastructure for online payments, inconsistent enforcement of regulations, privacy issues and absence of consumer protection laws that specifically apply to online shopping. These challenges, coupled with rising incidents of online fraud such as identity theft and opaque service pricing, complicate the efforts of consumers in the digital marketplace. Existing consumer protection agencies usually lack the technical expertise required to address these emerging issues. Current regulations, which primarily address the safety of physical products, are inadequate for addressing critical issues such as false advertising, product warranties, and dispute resolution in digital commerce. Additionally, gaps in data protection, weak intellectual property laws, and limited secure shipping options further undermine consumer confidence in the sector. This paper, therefore, examines the current state of consumer protection in the digital era, analyzing key concerns and providing actionable recommendations to strengthen regulatory frameworks and enhance consumer rights. To enhance consumer safety in the digital age in Pakistan, this paper recommends modernizing and strengthening the existing legal framework, empowering regulatory bodies, establishing a national consumer protection statute, enhancing dispute resolution mechanisms, and fostering international cooperation to address cross-border trade challenges. We expect that implementation of these suggestions will help enhancing consumer protection in the digital era with increased reliance and assurance in online transactions, ultimately resulting in sustainable growth in the sector.