New government regulations for e-commerce retailers to be enforced by end of the week

By

Isabelle Crossley

Published
Jul 21, 2020

The government has announced new regulations for e-commerce retailers, dubbed ‘Consumer Protection (E-commerce) Rules 2020’, which will come into effect by the end of the week, and will apply to both Indian and international businesses.

 
The Union Government’s new e-commerce regulations state that, from the end of the week, e-tailers will have to clearly show the origin, expiry date, and total price, including a break down of costs of goods and services for sale online, the Press Trust of India reported. The regulations are mandatory for businesses based in India and international businesses, which retail online in India.
 
Goods for sale online must also show return, refund, exchange, warranty, and guarantee policies, with the aim of enabling consumers to make informed decisions about purchases. Failing to adhere to the regulations will result in penalties.

“Most rules framed under the Consumer Protection Act… have come into force from today,” Consumer Affairs Minister, Ram Vilas Paswan, announced at a virtual press conference on Monday, the Press Trust of India reported.

“However, e-commerce rules will get notified by the end of this week, while rules on direct selling will take some more time.”
 
The new regulations aim to increase consumer trust in online retail, as a lack of trust remains a hurdle to bringing more shoppers online.

For this reason, the regulations prevent businesses from posing as customers to write favourable reviews and instruct them to include information about the security of online payment options offered. E-commerce platforms, which host numerous sellers, are also mandated to provide business information about their sellers.