Amendments of E-commerce Rules under the Consumer Protection Act, 2019 and its Impact on the Website

Saptaparni Raha
Jan 6, 2023
2 min read

Written by Saptaparni Raha, Lawyer

Introduction

The federal government announced that the Consumer Protection (E-commerce) Rules, 2020, would go into force on July 23, 2020. Many aggrieved consumers, traders, and associations complained about widespread cheating and unfair trade practices before the government, which led to the government proposing amendments to the E-commerce Rules.

Amendments

No e-commerce business entity should indulge in the mis-selling of goods or services offered on its platform.
Business owners should not mislead users by manipulating search results.
They need to permit usage of the name or brand associated with that of one marketplace e-commerce entity to promote or offer the sale of goods or services on its platform. This amendment prohibits the usage of the name or brand of an e-commerce entity that is associated with the goods/services sold on the E-commerce entity.
They should not allow any display or promotion of any advertising agency that may be misleading.
Specific flash sales or back-to-back sales for any e-commerce entity that limits the customer choice and increases price are not allowed.
Abuse of a dominant position under section 4 of the Competition Act is prohibited for any e-commerce business entity.

Impact on E-commerce Website

The proposed e-commerce rules do not allow any e-commerce website to disclose consumer information to any third party without consent.
The e-commerce business entity indulging in any cross-selling of complementary goods needs to disclose the name of the entity providing data to the e-commerce entity.

Conclusion

The planned changes will significantly alter the e-commerce industry. Increasing compliance would make e-retailers more accountable. Additionally, it would ensure that consumer interests and their right to privacy are protected.

References

Vasudha Luniya, Ankita Mehra (2021): Proposed Amendments To The E-Commerce Rules, 2020 – Whether It Is A "One Size Fits All" Approach Or Not (mondaq)
Majumdar & Partners: The Impact of the Proposed Revamp of E-commerce Rules in India (majmudarindia)