Government notified new rules for e-commerce firms

On July 23, 2020, the central government came out with new rules and regulations for e-commerce companies under the Consumer Protection Act, 2019. The government added several changes in the existing set of earlier rules.

The new rules are applicable to all the goods which are sold online and aim to preserve consumer’s right by establishing authorities to solve all sort of consumer disputes to give effective results on time.

These new changes made for the e-commerce companies come under Consumer Protection (E-Commerce) Rules, 2020, which originally is a part of the Consumer Protection Act, 2019.

The government further announced that the new set of rules will get implemented in the country from July 27, 2020, which was earlier planned to be implemented nationwide from July 20, 2020. Moreover, Ram Vilas Paswan, Consumer and Food Affairs Minister, will address a conference for the same.

List of some new rules under Consumer Protection (E-Commerce) Rules, 2020:-

  • It will apply to all goods which are sold online through the marketplace or inventory-led models.
  • Now the companies must display the ‘country of origin’ on products. If a company fails to do so will be booked for penal action mentioned under the Act.
  • It will also be applicable to all e-tailers who are registered in India. Moreover, e-tailers who have registered in abroad but are selling their products in India are also covered in the rule.
  • The new set of rules gives rights to the central government to check against unfair practices.
  • Now it is mandatory for the companies to hire grievance officers who can give required responses on time.
  • E-commerce players must display the total price of goods and services which are being offered for sale.
  • E-commerce players must display the ‘expiry date’ of the goods sold online.
  • Now, it is mandatory for the e-commerce players to show the entire details about return, refund, and exchange.
  • E-commerce players must display the warranty and guarantee of the product for sale.
  • E-commerce players must share delivery details and payment options.

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