Lok Sabha Question No. 1338 (UNSTARRED), answered on 2024-12-03
Subject: E-Commerce Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Praveen Khandelwal

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 1338. TO BE ANSWERED ON TUESDAY, THE 03 RD  DECEMBER, 2024.

## E-COMMERCE POLICY

## 1338.  SHRI PRAVEEN KHANDELWAL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  the  current  e-commerce  policy  in  the  country,  including  key provisions aimed at regulating e-commerce platforms and protecting consumer interests:
- (b) the details of rules established under the Consumer Protection Act, particularly those  that  apply  to  e-commerce  entities  and  ensure  fair  practices  in  online transactions;
- (c) the  manner  in  which  the  Government  plan  to  address  issues  related  to misleading advertisements, unfair trade practices, and data privacy in the ecommerce sector to safeguard consumer rights: and
- (d) the details of measures taken by the Government are in place to support small and medium-sized businesses in adapting to the e-commerce ecosystem while complying with consumer protection regulations?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The e-commerce sector is governed by a comprehensive legislative framework. Some of the Acts applicable to e-Commerce Sector are Consumer Protection Act,  2019;  Consumer  Protection  (E-  commerce)  Rules,  2020; Competition, Act,  2002;  Central  Goods  and  Services  Act  (CGST)  Act,  2017;  Information Technology Act, 2000; Payment and Settlement Systems Act, 2007; Companies  Act,  2013;  Copyright  Act,  1957  etc.  FDI  policy  and  Foreign Exchange Management Act, 1999 contain provisions related to Foreign Direct Investment (FDI) in e-Commerce Sector.
- (b): Consumer Protection Act, 2019 has been enacted to provide a framework for governing the consumer protection in the new era of globalization, technologies, e- commerce markets etc. The Department of Consumer Affairs has notified the    Consumer Protection (E- commerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019 to safeguard consumers from unfair  trade  practices in  e-commerce.  These  rules,  inter-alia,  outline  the responsibilities of e-commerce entities and specify the liabilities of marketplace and inventory e-commerce  entities, including provisions for  consumer grievance redressal.

Further, the Bureau of Indian Standards (BIS) has notified framework on 'Online Consumer  Reviews  -  Principles  and  Requirements  for their Collection, Moderation  and  Publication'  on  23.11.2022  for  safeguarding  and  protecting consumer interest from fake and deceptive reviews in e-commerce.

The Central Consumer Protection Authority, in exercise of the powers conferred by Section 18 of the Consumer Protection Act, 2019, has issued 'Guidelines for    Prevention and Regulation of Dark Patterns, 2023' on 30th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark patterns identified in e-Commerce sector.

- (c): The following acts/rules and the authorities thereunder provide the means and manner to address issues related to misleading advertisements, unfair trade practices and data privacy in the e-commerce sector to safeguard  consumer rights:-
- i.  Consumer Protection Act, 2019
- ii.  Central Consumer Protection Authority (CCPA)
- iii.  Consumer Protection (E- commerce) Rules, 2020
- iv.  Guidelines for Prevention of Misleading Advertisements and Endorsements  for Misleading Advertisements, 2022
- v.  Information Technology Act, 2000
- vi.  Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 ('IT Rules, 2021')
- vii.  Information Technology (Reasonable Security Practices and Procedures and                Sensitive Personal Data or Information) Rules, 2011
- viii.  Digital Personal Data Protection Act, 2023
- (d): The  Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT)  has pioneered the initiative of Open Network for Digital Commerce (ONDC). The initiative  aims  at  promoting  open  networks  for  all  aspects  of  exchange  of goods              and services over digital or electronic networks.

ONDC protocols standardize operations like cataloguing, inventory management,  order  management  and  order  fulfilment.  Thus,  small  and medium-sized businesses    can use any ONDC compatible applications instead of being governed by specific platform centric policies. This provides multiple options to them to be discoverable over network and conduct business. It also encourages easy adoption of digital means by those currently not on digital commerce networks.

ONDC makes e-Commerce more inclusive and accessible for consumers. All existing Laws and regulations of India, related to e-commerce are applicable to ONDC and the Network Participants on ONDC Network.

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