Latest Amendments in E-Commerce Rules

Nowadays, a prominent term, E-commerce is popular, basically, this is an online-based business model that has been set to enable consumers with an online market portal. This business model focuses on online business and has led people to buy and sell even during pandemics. Further, the highlights of the amendments in e-commerce rules can be defined as the  “trading of products or services such as digital products through the digital or online network” as defined in The Consumer Protection Act, 2019. In India, a large portion of the population trades products and services by means of an online environment; thus the government has issued laws to govern the functioning of e-commerce trading and businesses.

Highlights of the Amendments in eCommerce Rules

• According to the rules proposed, e-commerce platforms are required to appoint a Nodal Officer, a Resident Grievance Officer, Chief Compliance Officer, and other related officials to ensure compliance.

• Another rule has been proposed to place a framework in order to register the entities related to e-commerce with the Department for Promotion of Industry and Internal Trade and thus are allotted registration numbers. These provided registration numbers are also required to be prominently displayed on the online website, even when invoicing orders. 

• Further, The government proposed more rules to prohibit the illegal selling of products, such as when the entities represent information that contradicts the goods and services provided by them. To make consumers aware of these products and related information such as expiry date, the e-commerce entities are also required to mention ‘best before or use before date’.

• There are more rules that clarify that there is no ban on conventional e-commerce flash sales. However, some specific flash sales are not allowed as they limit the choice of the customers and increment in prices of the goods and services.

What are E-Commerce Rules in India?

There are a set of rules proposed by the Indian government to keep a check on the E-Commerce businesses. The highlights of the amendments in e-commerce rules include:

• Mandatory Registration: According to the rule proposed by the government, it is mandatory to get registered with the Department of Promotion for Industry and Internal Trade (DPIIT), the Ministry of Commerce and Industry, for all E-commerce entities.

• Limiting Flash Sales: Other rules had conveyed that Conventional e-commerce flash sales are not banned, but certain flash sales or back-to-back sales that limit consumer choice and increase prices are banned.

• Compliance Officer: The e-commerce businesses are also required to appoint a Chief Compliance Officer (CCO) and a nodal contact person to coordinate at every moment with law enforcement agencies.

• Restricting Related Parties: Another rule has been proposed to ensure that no E-commerce businesses or related use any kind of consumer information for ‘unfair advantage’.

• Clause of Country of Origin: now, the business entities are also required to identify goods on the basis of their origin and also need to provide a filtered mechanism at every stage for the benefit of consumers. 

• Reporting Cybersecurity Issues: further, all e-Commerce and related entities are required to provide true information within 72 hours when requested by an authorised government agency.

New India E-Commerce Rules and Their Impact

The highlights of the amendments in e-commerce rules or The Indian E-Commerce rules have created a storm as these changes given by the Department of Consumer Affairs range in nature, thus spilling an array of sectors and aspects, including Amazon and Flipkart. 

• The government has proposed a ban on all-flash sales, however, it has clarified that it is not applicable to conventional flash sales. The government has not specified what exactly is a conventional sale.

• Another proposal has been made that does not all E-Tailers advertise that mislead consumers about pricing, guarantee, or quality. Further, this means that these retailers are not allowed to advertise to sellers about discounts they tend to offer. 

• These E-Commerce rules highlight products that are not refundable at certain stages and offer a free exchange as well as returns to the consumers.

• The impact of these new rules is that they are facing an array of legal challenges in various High courts.

• Therefore, these proposed rules reflect the increment in the Government’s will that enables it to exercise more oversight on various online platforms.

Conclusion

E-commerce is nowadays considered a  game-changer for the future of “Digital India” and the Indian economy. The highlights of the amendments in e-commerce rules, the larger success of these E-Commerce businesses is evident in the Indian market as it has an ability to adapt as well as evolve during all times. There are many who switched the coin to their favour; however, many failed while setting up online businesses and thus were declined. Currently, the stakeholders of this E-Commerce business are travel service providers, manufacturers, retailers, government, and many more. The major initiative of government startups is to contribute to the e-commerce sector of the country, thus contributing to the Indian economy.