What Does India's New E-commerce Policy Mean for Consumers and Companies?

The eagerly anticipated e-commerce rules and policy are on the horizon, with an expected release within the next two weeks or after the ongoing parliamentary session, as confirmed by informed sources who participated in a final stakeholder consultation with Union Minister Piyush Goyal.

These upcoming regulations are expected to align with the Amendment to Consumer Protection (E-commerce) Rules, 2020, addressing concerns regarding "unfair trade" practices. One crucial aspect is the inclusion of the Open Network for Digital Commerce (ONDC), a platform aimed at democratizing e-commerce in India, potentially impacting food-delivery services like Swiggy and Zomato.

Balancing Consumer Protection and E-commerce Growth

Central discussions revolved around expediting the introduction of policy and rules, reinforcing grievance redressal mechanisms for swift consumer complaint resolution. Significant industry players including Amazon and Flipkart were present during these deliberations. Encouraging small and medium-sized enterprises (SMEs) to embrace digital technology and leveraging e-commerce for export growth were also key topics. CAIT (Confederation of All India Traders) emphasized the importance of democratic practices within e-commerce and safeguarding consumer interests.

CAIT Advocates for Consumer Protection and Regulatory Oversight

CAIT Secretary General Praveen Khandelwal agreed with stakeholders regarding fundamental aspects of the E-commerce Policy and Rules. Khandelwal emphasized the liberation of consumers from the perceived hold of foreign-funded e-commerce companies through comprehensive regulations. He suggested the establishment of a Regulatory Authority for monitoring and overseeing e-commerce trade in India, while advocating for mandatory registration of all e-commerce companies with DPIIT (Department for Promotion of Industry and Internal Trade).

Consumer Affairs Minister Piyush Goyal highlighted concerns over e-commerce platforms nudging users towards sellers that offer higher commissions, equating it to deceiving the public. He underlined the need for transparent and ethical practices, ensuring consumer protection. The policy is set to differentiate between the inventory-led and marketplace models, potentially clarifying fallback liability for e-commerce companies and further enhancing grievance redressal mechanisms.

Addressing Growing Concerns and Encouraging E-commerce Growth

While officials acknowledged a surge in complaints against e-commerce companies, they also recognized the overall growth in e-commerce transactions. This realization underscores the necessity for more stringent redressal mechanisms to balance the evolving landscape of digital commerce.