Government notifies new rules & regulations for e-commerce companies

The government has notified new rules and regulations for e-commerce companies under the Consumer Protection Act 2019. It made it mandatory to display the 'country of origin' on their products stating that any non-compliance will attract penal action.

It also notified the new Central Consumer Protection Authority (CCPA), with sweeping powers to book those found violating consumer rights, with effect from Friday.

The 'Consumer Protection (E-Commerce) Rules, 2020', notified on July 23, is part of the Consumer Protection Act, 2019. It was to be implemented in the country from July 20, but will now be implemented from July 27. Consumer and Food Affairs Minister Ram Vilas Paswan will address a press conference on July 27 on the same.

The new norms aim to protect the rights of the consumer by establishing authorities for timely and effective administration and settlement of consumers' disputes.

The 'Consumer Protection (E-Commerce) Rules, 2020' will apply to all electronic retailers registered in India or abroad but offering goods and services to Indian consumers. The new rules 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.

The rules cover marketplaces working as aggregators and inventory-led models where the retailer owns the stocks.

According to the new rules, 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. The new rules mandate that marketplaces, as well as sellers, would be required to have grievance officers who have to respond in a time-bound manner.