In light of the ongoing tussle between retailers and e-commerce companies along with the rising awareness in Indian consumers, the Government has brought forth ‘Consumer Protection (E-commerce) Rules 2020’, that will come into effect by the end of this week and will be applicable to both domestic and international businesses operating in India.
The new e-commerce regulations have made it mandatory for all e-tailers to clearly state the origin of the product, expiry date and the total price including a break-up of costs.
Also, in order to help consumers make informed purchase decisions, the products must mention refund, return, exchange, warranty and guarantee policies.
The Government has duly informed all parties that failing to adhere to the guidelines mentioned will result in penalties.
Consumer Affairs Minister Ram Vilas Paswan announced in a virtual press conference on Monday that most of the rules under the Consumer Protection Act came into effect Monday onwards but the new e-commerce rules will come into effect by the end of the week while the ones regarding direct selling may take some more time.
The regulations are aimed at helping foster trust in consumers towards online shopping.
E-tailers are henceforth prevented from posing as consumers to write positive reviews about products; they also have to disclose the security of online payment options offered.
E-commerce platforms which host numerous sellers are also mandated to provide business information about their sellers.
