The Consumer Protection (E-Commerce) Rules, 2020

Soon after the enactment of the Consumer Protection Act, 2019 which was earlier known to be Consumer Protection Act, 1986, the government in the year 2020 notified the Consumer Protection (E-Commerce) Rules, 2020. The motive behind such rules is that this will put a stop to such practices that harm the consumer and which make essential goods inaccessible in the market.

The Government in the year 2019, prepared a draft “Consumer Protection (E-Commerce) Guidelines, 2018.” These guidelines were only applied to B2C (Business to Consumer) E-commerce entities. In November 2019 the Central Government released the Consumer protection (e-commerce) Rules, 2019. The Consumer Protection (E-commerce) Rules, 2019 has been modified and new obligations have been imposed on the e-commerce entities which is later released as Consumer Protection (E-commerce) Rules, 2020.

Applicability:

The E-commerce Rules, 2020 apply to all goods and services bought and sold over the digital or electronic network including digital products. However, they do not apply to any activity undertaken on a regular or systematic basis.

 It is interesting to note that the E-Commerce Rules, 2020 are also applicable to an e-commerce entity that is not established in India but systematically offers goods or services to consumers in India. Hence it implies that the E-commerce rules 2020 would apply to both local and international e-commerce entities irrespective of where they are established.

Disclosure of Information:

Under E-commerce Rules, 2020 every e-commerce entity must provide information such as the legal name of the e-commerce entity, principal geographic address, etc. in a clear and accessible manner on its platform, and such information should be displayed prominently to its users.

Every marketplace e-commerce entity is also required to provide information relating to refund, return, and exchange, and warranty shipment, mode of payment, and grievance redressal mechanism which may be required by consumers. The Rules of 2020 provide a complete list of information that has to be provided by a seller offering goods or services through a marketplace e-commerce entity as well as every inventory e-commerce entity.

Grievance Redressal Mechanism:  

Grievance has been defined to mean any complaints to an e-commerce entity regarding violations of the Consumer Protection Act, 2019 and the rules made under it. Every e-commerce entity is required to make an adequate grievance mechanism and shall appoint a grievance officer for consumers. The entity must ensure that the grievance officer acknowledges the receipt of any consumer complaint within 48 hours.

No False Representation:

The new rules, 2020 states that no marketplace seller shall falsely represent itself as a consumer and post reviews to deceive the actual consumer by false representations.

Manipulation of Prices:

No e-commerce entity shall manipulate the prices of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price having regard to prevailing market conditions.

The new E-commerce Rules, 2020 certainly gives more power and advantage to consumers so that no cheating can be done to them. The rules further strengthen the rights of the consumers. These rules will put an end to malpractices that harm the consumers. It was a need of the hour to bring such rules which also contain proper rules for grievance redressal mechanisms, in the overall process to protect consumer, these E-commerce Rules, 2020 have managed to cover the relevant issues faced by the industry and people associated with it.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.