Metaverse E-Commerce - Exploring The Paradigm Shift From Legal Perspective

Dhruthi C, Christ (Deemed to be University)

ABSTRACT

“Metaverse is not a thing a company builds. It is the next chapter of the internet overall." -Mark Zuckerberg

Metaverse is a combination of networks which allows virtual avatars to encounter reallife, third-dimensional experiences in a virtual world. It is a fusion of Virtual Reality (VR) and Augmented Reality (AR). Though this experience was offered largely by gaming giants, it gained momentum in 2019 when social media company Facebook Inc. communicated its commitment to developing Metaverse platforms. Since then, the horizons of the Metaverse expanded from being limited to hosting games and meetings to now being a platform for business-investment activities and much more. One of the business models which was massively influenced and impacted by Metaverse is ecommerce. However, certain areas of regulation remain unanswered, such as issues related to payment, advertising, platform liability and so on. In the Indian context, general laws, and regulations exist, such as ‘The Consumer Protection Act 2019,’ ‘Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022,’ and numerous guidelines by Advertising Standards Council of India [ASCI]. However, no specific legal code exists to regulate the affairs of the virtual world. A paradigm shift, thus, demands a positive progression of rights, which must be investigated and discussed at this nascent stage. Therefore, the epicentre of this article is to discuss the nuances of Metaverse e- commerce in detail and to make suggestions in this regard. By adopting analytical methodology, the author also aims to explore additional rights to which virtual consumers and business houses may be entitled to protect their interests at this infancy stage before it becomes the next big thing.

Keywords: Metaverse, E-commerce, Consumer, Business houses