The government Releases Draft Guidelines to Increase the Accountability of E-commerce

The government Releases Draft Guidelines to Increase the Accountability of E-commerce
Government Issues Draft Guidelines to Boost E-commerce Accountability

In order to safeguard customers against dishonest activities in the quickly growing online retail industry, the Centre has put up draft guidelines for e-commerce platforms that need self-regulation measures. Under the direction of the Ministry of Food and Consumer Affairs, the Bureau of Indian Standards (BIS) created the draft rules, titled "E-commerce Principles and Guidelines for Self-Governance," and requested feedback from interested parties by February 15.

According to the draft, the growth of e-commerce has brought forth new difficulties, especially with regard to consumer trust and protection. In this context, it is impossible to overstate the significance of effective and transparent regulations and standards for self-governance in e-commerce. For e-commerce operations, the framework presents three-phase principles that address the pre-transaction, contract generation, and post-transaction phases. Prerequisites for the transaction Businesses should, therefore, perform comprehensive KYC on their business partners, particularly third-party suppliers. In order to assist customers in evaluating the features and usefulness of products, the draft also requires comprehensive product listings that contain the title, identification number, seller contact information, photo, and videos.

Bringing More Transparency in the Sector

According to the draft, all e-commerce businesses must document customer consent, permit transaction review, and uphold clear cancellation, return, and refund policies in order to preserve openness. All e-commerce platforms must offer a variety of payment methods, such as bank transfers, e-wallets, mobile payments, and credit/debit cards, in order to ensure safe and equitable payment procedures. Platforms for imported items must prominently disclose information about the importer, packer, and vendor. Platforms are required to document customer permission throughout contract formation, permit transaction scrutiny, and uphold clear cancellation, return, and refund rules.

Additionally, the proposed regulations require safe payments through the use of two-factor authentication and encryption in payment systems. Additionally, cash-on-delivery needs to be handled according to customer preferences. After the transaction The proposal states that the platform must have distinct policies for counterfeit goods and clearly define the timeframes for exchanges, refunds, and replacements. Additionally, the plan suggests banning the sale of things that are prohibited.

Giving More Clarity to Seller and Customers

Along with seller onboarding, the e-commerce company must compile and distribute a list of prohibited products. In addition to the aforementioned recommendations, the document also includes general guidelines, such as conducting business fairly and without giving any seller on the platform preferential treatment. Customers should be made aware of any promotional agreements the e-commerce company may have with brands.

Amazon and Flipkart, two of the biggest online retailers, are currently at odds with the Competition Commission of India (CCI), which has accused them of engaging in anti-competitive behaviour. Furthermore, both businesses have been bypassing laws by using proxy vendors to manage inventories and monitor listings on their platforms, according to the Confederation of All India Traders (CAIT). Additionally, it said that whereas independent traders are forced to pay much higher costs, which distort the competitive landscape, these sellers get lower fees and access to exclusive product launches.


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