Draft rules for E-Commerce: Step towards greater accountability, consumer trust

The government has rolled out draft guidelines for e-commerce platforms, mandating self-regulatory measures to protect consumers from fraudulent practices amid the fast-growing digital shopping landscape in India.

Title and Purpose of the Draft Guidelines

The draft guidelines, titled 'E-commerce-Principles and Guidelines for Self Governance', have been prepared by the Bureau of Indian Standards (BIS) under the Food and Consumer Affairs Ministry's supervision, seeking stakeholder comments by February 15. "...the rise of e-commerce has introduced new challenges, particularly in terms of consumer protection and trust. The importance of clear and effective rules and norms for self-governance in e-commerce cannot be further emphasized in this context," the draft stated.

Three-Phase Principles for E-Commerce Operations

The framework introduces three-phase principles covering pre-transaction, contract formation, and post-transaction stages for e-commerce operations. Under pre-transaction requirements, platforms must conduct thorough KYC of business partners, especially third-party sellers. The guidelines mandate detailed product listings including title, seller contact details, identification number, and supporting media to help consumers assess product utility and features.

Transparency for Imported Goods

For imported goods, platforms must display importer, packer, and seller details prominently. During contract formation, platforms must record consumer consent, enable transaction review, and maintain transparent policies for cancellation, returns, and refunds. Complete transaction records must be maintained and made accessible to consumers as per applicable laws. The guidelines mandate diverse payment options including credit/debit cards, mobile payments, e-wallets, and bank transfers, with full disclosure of processing charges.

Post-Transaction Guidelines Established

Post-transaction guidelines specify clear timelines for refunds, replacements, and exchanges, with additional provisions for counterfeit products. Platforms must ensure timely delivery notifications whether handled internally or by third-party providers. The draft prohibits the sale of banned products and requires platforms to maintain monitoring mechanisms and seller background checks. A ready-made list of banned products must be available during seller onboarding, along with consumer reporting mechanisms for violations.

Ensuring Neutral Operations in E-Commerce

E-commerce entities must ensure neutral operations, offering a level-playing field to all stakeholders. The guidelines explicitly prohibit preferential treatment to any sellers or service providers. All consumer reviews and ratings must comply with IS 19000:2022 standards for online consumer reviews, covering collection, moderation, and publication processes. The guidelines also emphasize data protection compliance throughout e-commerce operations.

(Except for the headline, nothing has been changed by All India News Network in the PTI copy.)