The Ministry of Consumer Affairs, food, and public distribution on 23rd July 2020 has published Consumer Protection (E-Commerce) Rules, 2020 to prevent unfair trade practices in e-commerce, direct selling, and also to protect the interest and rights of consumers.
The rules shall be applicable to all electronic retailers including multi-channel single-brand retailers and single-brand retailers in single or multiple formats offering goods and services to Indian consumers, whether registered in India or overseas. However, it shall not apply to any activity of a natural person carried out in a personal capacity not being part of any professional or commercial activity undertaken on a regular or systematic basis.
Key Highlights of the rules.
- The Rules provided that sellers offering goods or services through a marketplace e-commerce entity should not adopt any unfair trade practice whether in the course of the offer on the e-commerce entity’s platform or otherwise. He shall not falsely represent itself as a consumer and post reviews about goods or services or misrepresent the quality or the features of any goods or services.
- Retailers must compulsorily display details about return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, and grievance redressal mechanism, and any other similar information that may be required by consumers to make informed decisions.
- Every e-commerce entity has to establish an adequate grievance redressal mechanism having regard to the number of grievances ordinarily received by such entity from India, and shall appoint a grievance officer for consumer grievance redressal, and shall display the name, contact details, and designation of such officer on its platform.
- Every e-commerce entity shall effect all payments towards accepted refund requests of the consumers as prescribed by the Reserve Bank of India.
Click here to read the notification.
