New rules for ecommerce platforms to make online shopping safer in India

The new e-commerce rules, called the Consumer Protection (E-Commerce) Rules, 2020 are under the Consumer Protection Act, 2019.

The new rules ask the online retailers to ensure easy returns, quickly redress customer complaints and refrain from discrimination against merchants selling products on their platform, among other proposed rules for e-commerce companies under the new consumer protection law.

The Consumer Protection Act, 2019 to promote, protect and enforce consumer rights came into effect on July 20 last.

The e-commerce rules will be applicable to all e-tailers selling goods or services to Indians, registered in India or overseas, Union minister Ram Vilas Paswan had said on Monday.

Non-compliance with the rules will subject the e-commerce companies to penalties, the minister said.

The new norms require the e-commerce platforms to furnish the details of the sellers and mandatory consumer redressal contacts. They are required to have clear-cut agreements with the sellers so that they also bear the responsibility of the consumers who buy the products sold on their platforms and make payments through their gateway, said a Mint report.

In the new rules, the government has made it mandatory to help the consumers make informed decisions, for which they should provide return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, and grievance redressal mechanism, and any other information that may be necessary, the report added.

The ecommerce businesses have been told not to discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act. They have also been not allowed to “manipulate the price" to gain unreasonable profits, the report added.

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