Government launches new e-commerce regulations to increase compliance

By

Isabelle Crossley

Published
May 20, 2021

The government has instructed all e-commerce businesses operating in India, both domestic and foreign-owned, to appoint a nodal officer to ensure the business complies with new consumer protection regulations.

 
E-commerce businesses must, “appoint a nodal officer or an alternate senior designated functionary who is resident in India, to ensure compliance with the provisions of the Act or the rules made thereunder,” the Ministry of Consumer Affairs said in a statement, the Press Trust of India reported. 
 
The new sub-rule came into effect on May 17 as part of the Consumer Protection (E-Commerce) Rules, 2020. The rules come under the provisions of the Consumer Protection Act, 2019 and violations of the regulations will necessitate penal action under the Consumer Protection Act, 2019.

As e-commerce continues to grow in India, boosted by the ongoing pandemic-led lockdowns where staying home has increased online shopping, a number of trade bodies are calling for increased regulations.

The Confederation of All India Traders has recently accused foreign-owned e-commerce giants Amazon and Flipkart of non-compliance but both businesses have denied the claims. The organisation has stated that non-compliance by big businesses is harming smaller, domestic traders.