According to the order of the government, the e-commerce platform will have to follow the new rules. And if companies do not do this, then action will be taken against them.
E Commerce
The government is planning to revise the e-commerce rules in the country and bring in stricter norms, in which the much talked about flash sale may be banned. As per the new draft rules, no e-commerce entity shall allow the display or promotion of deceptive advertisements, whether in the course of business or otherwise, on its Platform. Amazon and Flipkart will have to appoint a Chief Compliance Officer, a Resident Grievance Officer and a Nodal Contact Person in India. The Confederation of All India Traders (CAIT), which has long demanded stricter e-commerce norms to protect the interests of offline traders, lauded the draft norms.
The All India Online Vendors Association said it supported the proposed amendments. “We expect the government to strictly enforce the addition or deletion in full compliance at the earliest after due stakeholder discussion,” it said.
Information to be given within 72 hours
The proposed amendments require e-commerce entities to provide information within 72 hours of receipt of an order from a government agency for prevention, detection and investigation and prosecution of offenses under any law. The Consumer Protection (E-Commerce) Rules, 2020 were first notified in July last year. In violation of this, penal action can be taken under the Consumer Protection Act, 2019.
The government is also planning to register e-commerce entities with the Department for Promotion of Industry and Internal Trade (DPIIT). “The views/comments/suggestions on the proposed amendments may be sent within 15 days (by July 6, 2021) to email ([email protected]),” Joint Secretary, Ministry of Consumer Affairs said in a public notice. .”
In a separate statement, the government said it has received multiple representations of complaints from aggrieved consumers, traders and associations against widespread fraud and unfair trade practices in the e-commerce process. The ministry, however, said that there will be no ban on e-commerce discount sales that are conducted traditionally. Sales only specifically aimed at engaging customers or frequent flash sales, inflating prices and preventing an equal opportunity platform for all, will not be permitted.
It is noteworthy that at present e-commerce companies are registered under Companies Act, Indian Partnership Act or Limited Liability Partnership Act and not separately with DPIIT. According to the ministry, the proposed amendments are aimed at bringing transparency in the e-commerce platform and further strengthening the regulatory regime.
(with language input)
read this also:
Twitter India Head summoned by UP Police, if he does not appear on June 24, this big action will be taken
Twitter India Head summoned by UP Police, if he does not appear on June 24, this big action will be taken
.