Lok Sabha Question No. 2516 (UNSTARRED), answered on 2024-12-10
Subject: Dedicated Law to regulate e-Commerce Websites
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri M K Raghavan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 2516.

TO BE ANSWERED ON TUESDAY, THE 10 TH  DECEMBER, 2024.

## DEDICATED LAW TO REGULATE E-COMMERCE WEBSITES

## 2516.  SHRI M K RAGHAVAN:

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

- (a) Whether the Government has any proposal to introduce a dedicated law to regulate e-Commerce websites in the country, if so, the details thereof;
- (b) whether the Government has any proposal to introduce a dedicated grievance redressal system for e-Commerce consumer complaints in view of the raising complaints; and
- (c) if so, the details thereof?

## 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) & (c): 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.  Department  of  Consumer  Affairs  has  also  launched National Consumer  Helpline  to create awareness,  advise and  redress consumer  grievances  including  those  related  to  e-commerce  and  act  as  a central registry for lodging consumer grievances.

The Consumer Protection Act, 2019 provides for redressal of the grievances of consumer through specialized three-tier quasi-judicial agencies, now commonly  known  as  'National  Consumer  Disputes  Redressal  Commissions (NCDRC)' at National level, 'State Consumer Disputes Redressal Commission (SCDRC)'  at  State level, and  'District  Consumer  Disputes  Redressal Commission(DCDRC)' at District  level.  The  Act  also  provide  for  simple  and speedy redressal of consumer disputes including those related with unfair trade practices.  The  Consumer  Commissions  are  empowered  to  give  relief  of  a specific nature and award, wherever appropriate, compensation to consumers.

Salient features of the Consumer Protection Act, 2019 are establishment of a Central Consumer Protection Authority(CCPA); simplification of the adjudication process in the Consumer Commissions; filing of a complaint by a consumer in the Consumer Commission having jurisdiction over the complainant's place of residence/work or where the cause of action arises, or the  place  of  business  or  residence  of  the  opposite  parties;  virtual  hearing; deemed admissibility of complaints if admissibility is not decided within 21 days of filing; provision of product liability; penal provisions for manufacture/sale of adulterated products/spurious goods; provision for making rules for prevention of unfair trade practice in e-commerce and direct selling etc.

Further, 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.

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