Government Releases Draft Guidelines to Enhance E-commerce Accountability

 

The Indian government has introduced new draft guidelines to enhance accountability in the digital marketplace. These guidelines, called "E-commerce – Principles and Guidelines for Self-Governance," aim to create stronger regulations for e-commerce to protect consumers from fraud and ensure fair practices for all. The guidelines were created by the Bureau of Indian Standards (BIS), under the guidance of the Food and Consumer Affairs Ministry. They focus on three main parts of e-commerce operations: before the transaction, when the contract is made, and after the transaction is completed.

One important part of the guidelines is that e-commerce platforms must verify the identity of their business partners, especially third-party sellers, using Know Your Customer (KYC) processes. This means they need to check that the identity details and product information provided by sellers are accurate. E-commerce companies must also treat all sellers equally and prevent counterfeit products by requiring sellers to give detailed descriptions of their products, including how they will be shipped.

The guidelines also emphasize the importance of protecting consumer data. E-commerce platforms must follow laws related to payment processing, privacy, and anti-money laundering. They must also obtain explicit consent from consumers for transactions and provide clear policies for cancellations, returns, and refunds. 

 

The government is asking for feedback on these draft guidelines from stakeholders by February 15, 2025. Not only this, the draft prohibits the sale of banned products and requires platforms to maintain monitoring mechanisms and seller background checks. A readymade list of banned products must be available during seller onboarding along with consumer reporting mechanisms for violations.