Published: 28th Jun, 2021
The government has proposed changes to the e-commerce rules under the Consumer Protection Act, 2019 to make the operation framework more stringent.
Context
The government has proposed changes to the e-commerce rules under the Consumer Protection Act, 2019 to make the operation framework more stringent.
About
Key changes proposed in the e-commerce rules
- The rules are issued by the Ministry of Consumer Affairs.
- These rules are proposed to change the Consumer Protection (e-commerce) Rules 2020.
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e-commerce entity
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- The rules seek to ban “specific flash sales” by e-commerce entities.
- The specific flash sales limit the consumer choice.
- It prevents a level playing field.
- It does not ban conventional e-commerce flash sales.
- It also introduced the concept of “fall-back liability”.
- According to this, e-commerce firms will be held liable in case of loss to the customer.
- It also restricts e-commerce companies from “manipulating search results or search indexes”.
- It also protects the personal information of the consumer.
- Any online retailer will first have to register itself with the Department of Promotion for Industry and Internal Trade (DPIIT).
- Any entity having 10 percent or more common ultimate beneficial ownership will be considered an “associated enterprise” of an e-commerce platform.
- It also mandates e-commerce companies to appoint a grievance officer, a chief compliance officer, and a nodal contact person “for 24×7 coordination with law enforcement agencies”.
- To share information with a “government agency which is lawfully authorized for investigative or protective or cybersecurity activities.
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