Govt issues draft rules to make e-com accountable, seeks comments by Feb 15

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The government has rolled out draft guidelines for e-commerce platforms, mandating self-regulatory measures to protect consumers from fraudulent practices amid the fast-growing digital shopping landscape in India.

The draft guidelines, titled 'E-commerce-Principles and Guidelines for Self Governance', have been prepared by the Bureau of Indian Standards (BIS) under the Food and Consumer Affairs Ministry's supervision, seeking stakeholder comments by February 15.

"...the rise of e-commerce has introduced new challenges, particularly in terms of consumer protection and trust. The importance of clear and effective rules and norms for self-governance in e-commerce cannot be further emphasized in this context," the draft stated.

The framework introduces three-phase principles covering pre-transaction, contract formation, and post-transaction stages for e-commerce operations.

Under pre-transaction requirements, platforms must conduct thorough KYC of business partners, especially third-party sellers. The guidelines mandate detailed product listings including title, seller contact details, identification number, and supporting media to help consumers assess product utility and features.

For imported goods, platforms must display importer, packer, and seller details prominently. During contract formation, platforms must record consumer consent, enable transaction review, and maintain transparent policies for cancellation, returns, and refunds.

Complete transaction records must be maintained and made accessible to consumers as per applicable laws. The guidelines mandate diverse payment options including credit/debit cards, mobile payments, e-wallets, and bank transfers, with full disclosure of processing charges.

Platforms must implement secure payment systems with encryption and two-factor authentication. For recurring payments, the draft requires clear disclosure of duration, intervals, and amounts, along with simple opt-out procedures.

Cash-on-delivery refunds must be processed as per consumer preference.

Post-transaction guidelines specify clear timelines for refunds, replacements, and exchanges, with additional provisions for counterfeit products. Platforms must ensure timely delivery notifications whether handled internally or by third-party providers.

The draft prohibits the sale of banned products and requires platforms to maintain monitoring mechanisms and seller background checks.

A ready-made list of banned products must be available during seller onboarding, along with consumer reporting mechanisms for violations.

E-commerce entities must ensure neutral operations, offering level-playing field to all stakeholders. The guidelines explicitly prohibit preferential treatment to any sellers or service providers. The framework mandates policies to combat counterfeit products and requires sellers to ensure accurate product descriptions and content.

Platforms must conduct periodic seller reviews to maintain listing accuracy. All consumer reviews and ratings must comply with IS 19000:2022 standards for online consumer reviews, covering collection, moderation, and publication processes. The guidelines also emphasize data protection compliance throughout e-commerce operations.