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INSPIRA-JOURNAL OF COMMERCE,ECONOMICS & COMPUTER SCIENCE(JCECS) [ Vol. 12 | No. 2 | April - June, 2026 ]

Consumer Protection in the Digital Economy: The Role of AI, Data Privacy, and Smart Governance in Viksit Bharat 2047

Mr. Ganesh Kumawat & Dr. Tanaya Kamlakar

The rapid expansion of digital technologies has significantly transformed consumer markets worldwide. In India, the growth of e-commerce platforms, artificial intelligence (AI), big data analytics, and digital payment systems has created new opportunities for economic development while simultaneously exposing consumers to emerging risks. As India progresses toward the vision of Viksit Bharat 2047, strengthening consumer protection mechanisms within the digital economy has become a critical policy priority. The increasing reliance on algorithm-based decision-making, personalized advertising, and data-driven platforms has raised serious concerns regarding consumer privacy, unfair trade practices, misleading advertisements, dark patterns, and digital fraud. This research paper examines the effectiveness of the Consumer Protection Act, 2019 in addressing the emerging challenges of digital commerce in India. The study further analyzes the influence of artificial intelligence, big data analytics, and digital platforms on consumer behaviour and explores potential risks such as algorithmic bias, manipulation through targeted advertising, and online market dominance. In addition, the paper evaluates the role of regulatory institutions and governance frameworks, particularly the Central Consumer Protection Authority (CCPA) and the Digital Personal Data Protection Act, 2023, in ensuring transparency, accountability, and consumer trust in the digital marketplace. The research adopts a doctrinal and analytical approach by examining relevant legislation, policy documents, regulatory guidelines, and scholarly literature. It argues that while the Consumer Protection Act, 2019 represents a progressive legal framework addressing e-commerce and digital transactions, certain regulatory gaps remain in dealing with AI-driven decision-making, cross-border digital commerce, and complex data ecosystems. The study highlights the need for stronger regulatory oversight, improved digital literacy, algorithmic transparency, and coordinated governance mechanisms. The paper concludes that integrating robust consumer protection laws with effective data governance and smart regulatory frameworks can significantly strengthen consumer confidence in the digital economy. Such reforms are essential to achieving a fair, transparent, and secure digital marketplace aligned with the broader national vision of Viksit Bharat 2047.

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