The Consumer Ministry released the draft amendment to the Consumer Protection (E-commerce) Rules 2020. In this, several new provisions have been suggested to protect the interests of consumers on e-commerce platforms. These include flash sales, heavy discounts and new provisions for cross selling on these portals. The E-commerce Rules, 2020 came into force two years back with effect from 23rd July 2020.
The government had received several complaints of fraud and unfair trade practices in e-commerce and online shopping. After this, the government is preparing to change the consumer protection rules for e-commerce.
Traditional e-commerce flash sales will not be banned. There will be a ban on specific flash sales or sales that are held one after the other, limiting the choice of customers, increasing the price and preventing equal business opportunities. A Chief Compliance Officer will be appointed for compliance with the Consumer Protection Act 2019.
The government includes rules such as giving priority to the sale of local products, mandatory registration of e-retailers with the Department of Industry and Internal Trade. The purpose of this move of the central government is to make companies accountable to customers and make the regulatory system strict.
Under the proposed amendments, e-commerce companies will have to provide information within 72 hours of getting an order from a government agency for prevention, investigation and investigation of offenses under any law. The ministry has said that industry bodies and e-commerce firms can send their suggestions and comments on the proposed rules by July 6. Through this, the government wants to bring transparency on the e-commerce platform.
