E-COMMERCE GUIDELINES

For: Preliminary & Mains

Topics covered:

• Guidelines for e-commerce firms
• Consumer Protection Act

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News Flash

Guidelines for e-commerce firms aimed at protecting consumer interests would become mandatory under the new Consumer Protection Act.

As per the draft guidelines, the companies are required to submit a self-declaration to the ministry stating that it is conforming with the guideline.

 

Features and draft guidelines

• The guidelines will be applicable on all business-to-consumer (B2C) e-commerce platforms.
• It is mandated for e-tailers to display details of sellers supplying goods and services on their websites and moot the procedure to resolve consumer complaints.
• A 14-day limit for payments toward refund requests.
• The companies must protect the personally identifiable information of customers, should not directly or indirectly influence the price of the goods or services.
• The Central Consumer Protection Authority (CCPA) – which would be established to promote, protect and enforce consumer rights — would have the power to take action against violating firms.
• It also envisages simplified dispute resolution process, deals with ‘product liability’.
• It is also provided for stiff punishment to check misleading ads and adulteration.

 

Morgan Stanley Report, 2019

According to a February 2019 Morgan Stanley report, India is adding one Internet user every three seconds and the e-commerce sector in India is estimated to reach $230 billion by 2028, accounting for 10% of India’s retail.

 

The need for e-commerce policy

• E-commerce transactions have risen substantially
• The size of the digital economy in India will be $1 trillion by 2022.
• It will account for close to 50% of the entire economy by 2030.

 

Key issues addressed by the policy

• Export Promotion
• Stimulating the domestic digital economy
• Regulatory issues
• E-commerce marketplace
• Data localisation
• Security of consumer’s information

 

Source: The Hindu

 

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