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Buying products from an online marketplace or e-commerce ecosystem may seem like a daunting task, especially with recent reports of fraud and unfair trade practices being used by users of this platform. To address this problem, the government had to take measures to protect consumers from such malpractice and to restore their confidence in such e-commerce ecosystems.

With that in mind, the Consumer Protection Regulations 2020 (“Law”) was notified by the Ministry of Consumer Affairs, Food and Public Distribution (“Ministry”) on July 23, 2020 on Consumer Protection. The law, 2019 (“Law”), aims to prevent unfair trade practices in e-commerce and to protect the interests of consumers and to ensure transparency in e-commerce forums as well as to further strengthen the rules.

Scope and functionality

These rules are intended to apply to all goods and services purchased or sold on digital or electronic networks and are applicable to all e-commerce retail outlets. Their personal capacity also does not include regular or formal professional or business activities.

We can say that the rules apply only to legal entities that provide and supply their goods and services digitally, such as taxi delivery, ticketing, education technology services, etc.

The obligations of the forum and the sellers are clear:

The rules set out the forums and the set of obligations that sellers are bound by. These obligations ensure that the needs and rights of the consumer are met. To ensure that the same happens, the forum conductor must appoint a nominee or alternative supervisor to ensure that the forum conductor complies with the rules and regulations.

However, the rules seem to be silent on the minimum requirements for hiring such a person and also the actions that must be taken to meet this requirement.

They should also set up a time-limited grievance redressal system that allows the customer to lodge complaints and follow up on the case as well as the details of the relevant sellers. Disagreement, but it is not clear how important the information is. A grievance officer must also be appointed to facilitate this process, but the rules provide an opportunity for certain bodies or organizations to set standards that are mutually exclusive. These obligations also apply to sellers who sell their products on these platforms.

The platform is also required to provide certain information about the product-based or market-based platforms, such as the country of origin of the goods, but the laws remain silent when reviewing goods collected, packaged or manufactured in a country. Another country. Marketplaces are required to provide information on transportation, payment methods, refunds, and terms and conditions regarding sellers.

These regulations impose certain restrictions and obligations regarding the price of the product, the return of defective goods and services, late delivery (unless beyond capacity) and due to false customer reviews. It also states that no such lawsuit may be filed unless the same charges have been made on the platform. It also monitors the accuracy of the products sold on these platforms and assumes that the platform will be liable for the same if the product / service is verified. The forums should keep a record of all sellers who have repeatedly violated trademarks, copyrights, or information technology laws.

Violation of laws;

In the event of a breach of these rules, the provisions of the Act shall apply and in this case the e-commerce parties shall compel the e-commerce parties in question to respect the authorities investigating the violation and shall be fined or fined. Arrest, if found guilty. These rules include certain requirements set forth in the LM Rules and other applicable laws. In the absence of transparency, the penalties referred to in the LM regulations may be imposed on the e-commerce entities in question.


These rules have greatly increased the responsibility of e-commerce platforms for their users. However, there are some questions that need to be answered, such as the implementation and enforcement of the rules and the implications of the law on non-state actors. And what kind of digital product offerings fall into his view.

Also, since the origins of these laws can be traced back to section 94 of the law, it is important to note that violations of these laws must be met before a situation arises. Liability and breach of the seller can make the platform liable.

So, while these rules are a good step in meeting the needs of consumers, the rules still leave some doubts about certain situations. Therefore, these rules are for the benefit of all consumers affected by these rules, and platforms are a barrier to their implementation. To address some of the questions raised under these regulations, the Ministry issued a notice on May 17, 2021 introducing the Consumer Protection (E-Commerce) Regulations 2021, introducing the company’s standards. An organization overseen by an Indian resident or office outside India, overseen by an Indian resident, appoints an Indian-based crossing officer or alternate senior executive. They are being followed and honored.

The content of this article is intended to provide general guidance on the subject. You should seek the advice of a specialist regarding special circumstances.

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