Consumer Protection (E-Commerce) Rules, 2020

Background

The growth of online shopping has introduced both opportunities and risks for consumers. To safeguard consumer interests and ensure accountability of e-commerce entities, the Consumer Protection (E-Commerce) Rules, 2020 were notified under the Consumer Protection Act, 2019. These rules prescribe obligations for e-commerce entities, marketplace operators, and sellers operating in India.

Applicability

These rules apply to:

    • All goods and services offered for sale through digital or electronic networks, including digital products
    • All models of e-commerce, including marketplace and inventory models of e-commerce;
    • All e-commerce retail, including multi-channel single brand retailers and single brand retailers in single or multiple formats; and
    • All forms of unfair trade practices across all models of e-commerce:

These rules shall not apply to any activity of a natural person carried out in a personal capacity not being part of any professional or commercial activity undertaken on a regular or systematic basis.

Note: These rules shall apply to an e-commerce entity which is not established in India, but systematically offers goods or services to consumers in India.

Compliance requirements under the Rules

  1. Appoint a nodal person or an alternate senior resident in India (Rule 4(1))

Appoint a nodal person of contact 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

  1. Provide required information on e-commerce website(Rule 4(2))

Provide following information on platform, displayed prominently to its users, namely:

    • Legal name of the e-commerce entity;
    • Principal geographic address of headquarters and all branches;
    • Name and details of its website; and
    • Contact details like e-mail address, landline and mobile numbers of customer care as well as of grievance officer

      3. Establish Grievance Redressal Mechanism (Rule 4(4))

Establish an adequate grievance redressal mechanism having regard to the number of grievances ordinarily received by such entity from India

  1. Appoint a Grievance Officer for Consumer Grievance Redressal (Rule 4(4))

Appoint a Grievance Officer for Consumer Grievance Redressal

  1. Display of details of Grievance Officer for Consumer Grievance Redressal (Rule 4(4))

Appoint a Grievance Officer for Consumer Grievance Redressal and shall display the name, contact details, and designation of such officer on its platform

  1. Acknowledge receipt Consumer Complaint (Rule 4(5))

Grievance Officer should acknowledge the receipt of any consumer complaint within 48 hours from the date of receipt of the complaint

  1. Redresses Consumer Complaint (Rule 4(5))

Grievance Officer should redresses the complaint within one month from the date of receipt of the complaint

  1. Seller not to represent as consumer on marketplace e-commerce platform (Rule 4(6))

In case of sale of imported goods on e-commerce platform, details of any importer from whom it has purchased such goods, or who may be a seller on its platform shall be mentioned on e-commerce platform

  1. Not to refuse the return of goods in certain circumstances (Rule 4(9))

Consent of a consumer for the purchase of any good or service offered on its platform shall only be recorded where such consent is expressed through an explicit and affirmative action, and no such entity shall record such consent automatically, including in the form of pre-ticked checkboxes

  1. Liabilities of Marketplace E-Commerce Entities (Rule 5 )

A marketplace e-commerce entity shall comply with all the provisions of Rule 5 of Consumer Protection (E-Commerce) Rules, 2020

  1. Seller not to represent as consumer on marketplace e-commerce platform(Rule 6(2))

As a seller on marketplace e-commerce platform, no seller shall falsely represent itself as a consumer and post reviews about goods or services or misrepresent the quality or the features of any goods or services

  1. Not to refuse the return of goods in certain circumstances (Rule 6(3))

Goods sold through marketplace e-commerce platform shall not be refused to take back, withdraw, discontinue, refuse to refund, if such goods are defective, or not of characteristics, features as advertised or if such goods are delivered late from the stated delivery schedule

  1. Written contract with marketplace e-commerce entity (Rule 6(4))

Any seller offering goods through a marketplace e-commerce entity shall:

    1. Have a prior contract with e-commerce entity
    2. Appoint a grievance officer
    3. Ensure that advertisements of goods are consistent with actual characteristics
    4. Provide to e-commerce entity details as prescribed

      14. Information to be displayed on marketplace e-commerce platform (Rule 6(5))

Seller offering goods through a marketplace e-commerce entity shall provide required information as prescribed to e-commerce entity to be displayed on its platform.

Penalties & Consequences

The provisions of the Consumer Protection Act, 2019 (35 of 2019) shall apply for any violation of the provisions of these rules

Conclusion

The Consumer Protection (E-Commerce) Rules, 2020 strengthen consumer rights in India’s digital marketplace. All e-commerce operators and sellers must comply with these provisions to avoid penalties and maintain consumer trust.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

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