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Govt drafts revised consumer protection rules for E-commerce

June 21, 2021 09:13 PM

Govt drafts revised consumer protection rules for E-commerce
Govt drafts revised consumer protection rules for E-commerce; A pre-purchase search provision by country of origin on e-commerce websites.

Govt drafts revised consumer protection rules for E-commerce; The Ministry of Consumer Affairs, Food and Public Distribution has proposed a host of revisions in the revised Consumer Protection (E-Commerce) Rules, 2020 to make it more stringent.

The revised draft, released for stakeholder consultations, will define ‘cross selling’, ‘fall-back liability’, ‘flash sale’, ‘mis-selling’, among others, to avoid misrepresentation.

It proposes to end the practice of flash sale and distinct identification of sponsored list of products displayed on the e-commerce platform. It will also make registration with the Department for Promotion of Industry and Internal Trade (DPIIT) mandatory for all e-commerce entities.

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The proposed changes will also incorporate a provision to appoint a chief compliance officer in every e-commerce entity for a proper grievance redressal mechanism. In case of imported goods, the e-commerce entity will have to ensure that the product carries adequate additional information, including the country of origin.

Govt drafts revised consumer protection rules for E-commerce; A pre-purchase search provision by country of origin on e-commerce websites has also been proposed. The draft rules say that no logistics service provider of a marketplace e-commerce entity shall provide differentiated treatment between sellers of the same category.

It is also proposed that e-commerce entities will not use any information collected through its platform for unfair advantage of its related parties and associated enterprises. The related parties and associated enterprises have also been prohibited from enlisting as sellers for sale to consumers directly.

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