MINISTRY OF CONSUMER AFFAIRS, FOOD, AND PUBLIC DISTRIBUTIONS NOTIFIED THE CONSUMER PROTECTION (E-COMMERCE) RULES, 2020

MINISTRY OF CONSUMER AFFAIRS, FOOD, AND PUBLIC DISTRIBUTIONS NOTIFIED THE CONSUMER PROTECTION (E-COMMERCE) RULES, 2020 

• Rules were notified as part of the Consumer Protection Act, 2019 (CPA), to make online retailers more accountable and their businesses more transparent. 

Key highlights of rules 

• Rules will apply to all electronic retailers (e-tailers), registered in India or abroad but offering goods and services to Indian consumers. 
• It will cover all goods sold online through the marketplace or inventory-led models. 
• In a marketplace model, third-party sellers list and sell goods (e.g. eBay) while in the inventory model, the platform stocks goods and sells online (i.e. no multiple sellers are selling one product, for e.g. Jabong). 
• E-commerce entities are also required to mention 'country of origin' of goods and services that are necessary for enabling the consumer to make an informed decision at the pre-purchase stage. 
• Other details to be displayed: details about sellers, the total price of goods and services along with a break-up of other charges, expiry date, etc 
• Empowers the central government to act against unfair trade practices in e-commerce, direct selling with penal action under CPA. 
• Both e-tailers and their sellers have to appoint grievance officers to address any complaints. 
  

Source: Consumer Affairs