New regulatory regime for e-commerce kicks in

The government had notified a slew of new e-commerce rules as part of its updated consumer protection legislation, making online retailers more accountable and their businesses more transparent.

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Key-Points

It aims to protect the rights of consumer by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

The rules will be applicable to all electronic retailers registered in India or abroad but offering goods and services to Indian consumers.

The violation of the rules will attract penal action under the Consumer Protection Act, 2019.

The e-commerce players will have to display the total price of goods and services offered for sale along with the break-up of other charges.

They are also required to mention the ‘expiry date’ of goods offered for sale and the ‘country of origin’ of goods and services that are necessary for enabling the consumer to make an informed decision at the pre-purchase stage.

It empower the central government to act against unfair trade practices in e-commerce and direct selling. They require e-tailers to facilitate easy returns, address customer grievances and prevent discriminating against merchants on their platforms.

Marketplaces as well as sellers would be required to have grievance officers who have to respond in a time-bound manner.

E-commerce companies are not allowed to “manipulate the price” of the goods and services offered on their platforms to gain unreasonable profit and discriminate between consumers of the same class.

The new rules do not permit any inventory e-commerce entity to “falsely represent itself as a consumer and post reviews about goods and services or misrepresent the quality or the features of any goods and services”.