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New E-Commerce rulebook make online Shoppers Transparent

Updated: Aug 5, 2020

Discipline, rules and regulations makes life more practical and easy to live. Set of rules can just set your problems and issues. These makes things more open and clear. E-Commerce is the digital platform for buying and selling of different goods and materials.

The government has notified new rules for e-commerce companies, including mandatory display of 'country of origin' on their products, and said any non-compliance will attract penal action.

These new rules will help the online shoppers to be more transparent and accountable to consumers and there will be more open and clear exchange of things.

The new norms empower the central government to act against unfair trade practices in e-commerce, direct selling. The report also said that over the next four years, the penetration of e-commerce in India is also set to double to 11% from 5% currently. The policy aims to regulate the booming e-commerce sector and also keep an eye on the role of foreign players.

"Consumer Protection Act, 2019 aims to protect the rights of consumers by establishing authorities for timely and effective administration and settlement of consumers’ dispute".

  • Rule-1: E-commerce companies will be required to make data available to the government within 72 hours, which could include information related to national security, taxation and law and order.

  • Rule-2: Draft policy also said e-commerce platforms would be required to provide to consumers the details of sellers, including phone numbers, customer complaint contacts, email and addresses.

  • Rule-3: Foreign e-commerce companies providing live streaming services that use payment tokens should be regulated to ensure that users route such transactions through formal and regulated payment channels.

  • Rule-4: According to the new rules, e-commerce players have to clearly state the prices of goods and services along with a breakdown of other charges, mention expiry date of products, country of origin of products. They also have to ensure that they aren’t selling a product with incorrect claims or advertising, among other things.

  • Rules-5: E-Commerce rules also hold the platforms more accountable for the consumer complaints registered. According to the CPA, e-commerce companies will have to acknowledge a complaint within 48 hours and respond to it within a month.

  • Rule -6: No cancellation charges shall be imposed after confirming purchase unless similar charges are also borne by the e-commerce entity if they cancel the purchase order unilaterally for any reason, the rules state.

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