The Consumer Protection (E-Commerce) Rules, 2020 were amended on 6th June 2021 in light of greater accountability from the e-commerce platforms, protection of interests of consumers and encouragement of free and fair competition in the market.
With the advent of the corona, e-commerce platforms have become a thing of commonplace and are being more frequently utilized for procurement of goods and shopping. This gives a greater prerogative on the platforms and the government to ensure safe transactions and consumer friendliness of the same.
Following are the changes that have been brought forth:
More definitions and elucidation of terms have been done in the definitions of the rules with words like flash sales, misrepresentation and cross-selling being covered under the ambit of the act.
A provision for the registration of e-commerce platforms in the Department for Promotion of Industry and Internal Trade (DPIIT) has been made with the allocation and prominent display of the same mandatory for the entities.
The provision for the grievance officer has been omitted and instead a Chief Compliance Officer and a resident grievance officer needs to be appointed and will be made responsible for the compliance of the provisions in these platforms.
There is a mandation of disclosing the name, origin and ratings of the product offered.
Sponsored listing of products and services are to be distinctly identified with unambiguous and prominent disclosures.
Specific flash sales or back-to-back sales which limit customer choice, increase prices and prevent a level playing field are not allowed.
Platforms are to provide information under its control or possession, or assistance to the Government agency which is lawfully authorised for investigative or protective or cybersecurity activities within seventy-two hours of the receipt of an order.
The role and impartation of functions by the logistics service provider have also been delved into.
Association of enterprises under section 2(76) of the Companies Act, 2013 has also been included with specific provisions available for the same to be incepted being laid out.
By: Vasupriya Awasthi
(Former Intern, WCSF)
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