The Modern Rules of E-commerce

The central government has proposed changes to the 2020 consumer protection laws (e-commerce) and called on the public to comment Monday to prevent unfair sales and fraudulent Flash of goods and services on e-commerce platforms such as Flipkart and Amazon. The amendments are intended to curb the dominance of e-commerce companies. Under the proposed changes, any e-commerce business wishing to operate in India will be required to register for a period with the Department of Industry and Home Trade Promotion (DPIIT) as required by DPIIT for the provision of a registration number.

Online transactions have been subject to the Consumer Protection Act [2300] [1] with effect from 7 February 1992. Under the proposed e-commerce law of 2020 consumer protection, the company affiliated with the e-commerce market is related to the market and may not is a marketer in the market. The proposed rules will impact the super-app strategy of many companies, as rules for connected parties, data exchange, and sales phrases will be a major obstacle.

This rule applies to goods and services purchased and sold through digital and gas networks. We call it "goods and services" because it covers everything from your food delivery app to hotel booking websites. Goods will be deemed not to be intended for remote sale if the Goods website, website, or software application enters into a temporary agreement subject to the terms of the pre-sale or sale contract terms, including the availability, name, and quantity of goods deemed appropriate by the seller or if the goods are not intended for distance sale.

An online retailer must register with the Department of Industrial Development and Home Trade (DPI). The seller's obligation under Article 26 (1) (3) of the Consumer Protection Act shall be deemed to have been fulfilled when the seller provides the consumer with information electronically or by other means. The seller may allow consumers to review the offer by posting it on a website, website, or software application, but the agreement between the seller and the owner of the aggregator or online platform must provide different procedures for implementing these measures.

The government has also proposed changes to e-commerce laws under the Consumer Protection Act to make this law stronger for companies operating online. Earlier this year new laws were announced such as those required by the Center for Social Media Companies and IT Intermediaries and several proposals under the new rules aimed at increasing the online retailer of goods and services purchased on their platforms. A draft law issued by the Department of Consumer Affairs aims to prevent certain sales from e-commerce companies.

Significant Changes to Proposed Consumer Protection Laws and E-Commerce Rules: Major Changes by 2020 The government on Monday extended the deadline for public comment on proposed changes to the Consumer Protection Act, 2019. In June the Department of Consumer Protection and Food and Public Distribution. submit a list of proposed amendments to the Consumer Protection Act. The changes include the appointment of a law enforcement officer and a resident plaintiff, reinstatement provisions, commerce business registration, and a ban on flash sales. Another important change proposed by the government was the prevention of the loss of goods and services provided on these platforms.

India shocked the commercial world in June with a proposal by the consumer ministry aimed at limiting flash sales and curbing efforts to introduce independent labels - a move that puts the relationship between online markets and their suppliers under a microscope. The new rules were announced following complaints from brick and mortar retailers about the misconduct of foreign companies, which led to protests from Tata Group, which has more than $ 100 billion in sales and plans to expand e-commerce. The deadline for public comment on government regulations was amended from June 21 to July 6.

The new proposal also prevents Amazon, Flipkart, and other e-commerce players from using their products. In a review by Reuters, the Department of Finance, the Department of Commerce, and the Federal Think Tank NITI Aayog, which is involved in policy-making, argued that the new rules contradicted their stated goal of consumer protection and lack of clarity. It has been suggested that the entire set of values in the e-commerce definition be clarified, clarify the concept of flash sales, and limit consumer protection in e-commerce laws to protect consumer rights and interests in their current form so that they fall within competent jurisdiction, legal metrology and law. of mediation.

The changes could affect Flipkart and Amazon's business structure, say sources and lawyers. ET is looking at other proposals that could influence this growing trend in sales. India proposed on Monday to ban flash sales on e-commerce platforms and protect its partners from operating as vendors in South Asian markets and sought to tighten laws that could affect the future of Amazon, Walmart, and Flipkart in those markets.

The proposed move comes at a time when brick and mortar retailers are raising their concerns and raising concerns about allegations of injustice from Amazon, Walmart, and Flipkart in expanding their operations in India. Amazon has invested $ 6.5 billion in its Indian business and a large portion of Flipkart in Walmart, which sold $ 1.6 billion in 2018, is under ongoing investigation into anti-embezzlement in India. Meanwhile, the Indian Consumer Department in the first step said commerce firms would not be allowed to sell flash sales nationally.

MUMBAI, 22 June (Reuters) - India's proposed changes to consumer rules in the E-commerce sector could disrupt some of the major online shopping malls including Amazon (AMZN.O), Walmart (WMT.N), and Flipkart. The legal changes come at a time when companies are facing allegations that traders are operating illegally and foreign investment laws in the sector are disrupting the operating environment of Amazon, Walmart, and Flipkart as they fight lawsuits in court. India's e-commerce market is expected to grow by 30% to $ 200 billion by 2026.