Govt notifies new rules & regulations for e-commerce companies

The government has notified new rules and regulations for e-commerce companies under the Consumer Protection Act 2019. It made it mandatory to display the 'country of origin' on their products stating that any non-compliance will attract penal action.

The 'Consumer Protection (E-Commerce) Rules, 2020', notified on 23rd July is part of the Consumer Protection Act, 2019.

The new norms aim to protect the rights of consumer by establishing authorities for timely and effective administration and settlement of consumers' disputes.

The 'Consumer Protection (E-Commerce) Rules, 2020' will be applicable to all electronic retailers registered in India or



abroad but offering goods and services to Indian consumers. The new rules empower the central government to act against unfair trade practices in e-commerce and direct selling. They require e-tailers to facilitate easy returns, address customer grievances and prevent discriminating against merchants on their platforms. 

According to the new rules, the e-commerce players will have to display the total price of goods and services offered for sale along with the break-up of other charges. The new rules mandate that marketplaces as well as sellers would be required to have grievance officers who have to respond in a time-bound manner.