The Union government is keen on amending the Consumer Protection (E-Commerce) Rules 2020 and is seeking public views. It is looking to bring substantive changes in the way e-commerce platforms, such as Amazon and Flipkart, operate.
The draft proposes greater scrutiny of flash sales, enhanced liability of e-commerce sites, data protection for consumers and stronger grievance redressal. The draft rules, framed under the Consumer Protection Act 2020, the flagship consumer-rights law, will apply to “all models of e-commerce, including marketplace and inventory models of e-commerce”. The new draft proposes an updated definition of what constitutes an e-commerce entity, cross-selling, which refers to sale of additional goods related to a purchase already made, and fall-back liability, which essentially increases the liability of e-commerce platforms.
The draft rules, which will be open to public comments until July 6, defines an e-commerce entity as any person who “owns, operates or manages digital or electronic facility or platform for electronic commerce” and any “related party”, as defined under the Companies Act, 2013, but “does not include a seller offering his goods or services for sale on a marketplace e-commerce entity”.
This enhances the liability of e-commerce companies for goods and services delivered on their platforms. The draft rules outlaws flash sales—instant, unannounced sales that usually accompany discounts—that are manipulated to give advantage or preferential treatment to a particular seller or a group of sellers. Clause 16 of the draft reads: “No e-commerce entity shall organize a flash sale of goods or services offered on its platform.”
