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:
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
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
Provide following information on platform, displayed prominently to its users, namely:
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
Appoint a Grievance Officer for Consumer Grievance Redressal
Appoint a Grievance Officer for Consumer Grievance Redressal and shall display the name, contact details, and designation of such officer on its platform
Grievance Officer should acknowledge the receipt of any consumer complaint within 48 hours from the date of receipt of the complaint
Grievance Officer should redresses the complaint within one month from the date of receipt of the complaint
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
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
A marketplace e-commerce entity shall comply with all the provisions of Rule 5 of Consumer Protection (E-Commerce) Rules, 2020
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
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
Any seller offering goods through a marketplace e-commerce entity shall:
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.
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