All e-commerce entities registered in India or abroad, serving Indian citizens, will be required to appoint a nodal office
This new sub-rule was included in the Consumer Protection (Electronic Commerce) Rules 2020 and came into force on May 17.
The rules were made under the provisions of the Consumer Protection Act 2019, which governs matters relating to the infringement of consumer rights
The Indian government has required e-commerce companies to appoint a nodal officer to ensure compliance with the new consumer protection rules, which will apply to e-commerce entities registered in India as well as those registered overseas but offering goods and services to Indian consumers.
The notice issued by the Ministry of Consumer Affairs of India further adds that these rules will apply to all e-commerce entities incorporated under the Companies Act 1956 or under the Companies Act of 2013 or to any foreign company covered by clause (42) of Section 2 of the Companies Act 2013 or any officer, branch or agency outside India owned or controlled by a person resident in India, as provided for in the Foreign Exchange Management Act 1999.
This new sub-rule was included in the Consumer Protection (eCommerce) Rules 2020 and came into effect earlier this week (May 17), according to a notification signed by Anupam Mishra, Joint Secretary of the Department of consumption in India. . The consumer protection rules for electronic commerce govern anyone involved in a transaction for the purchase and sale of goods and services over digital or electronic networks, including market electronic commerce entities, electronic commerce entities based on inventory and single-brand or multi-brand retailers (excluding individual sellers).
The rules were made under the provisions of the Consumer Protection Act 2019, which governs matters relating to infringement of consumer rights, unfair trading practices and misleading advertising. The ministry’s notification reads: “it (the e-commerce entity) shall appoint a nodal officer or a designated alternate senior official who resides in India, to ensure compliance with the provisions of the act or rules made thereunder. “.
Under the Consumer Protection (E-Commerce) Rules 2020, e-commerce entities must display ‘country of origin’ on products sold on their platform. In addition to this they must also display the total price of the goods and services offered for sale along with a breakdown of other charges, they are also required to mention ‘expiration dates’, logistics details – including including return, exchange, refund, warranty and warranty, delivery and shipping — so a customer can make informed purchases.
E-commerce entities are also not allowed to manipulate the price of goods and services offered on their platforms to obtain an unreasonable profit and discriminate between consumers of the same category or make an arbitrary classification of consumers affecting their rights under the law. Also, in the event of a complaint, e-commerce businesses should provide a ticket number so that consumers can track the status of complaints.