Govt extends deadline for public comments on draft e-commerce rules

Tribune News Service

New Delhi, July 5

The Government once again delayed the implementation of new e-commerce rules after it accepted the request from some industry associations as well as e-commerce giants for extension of the deadline for sending in their comments on the draft rules by one month to July 21.

The rules ban fraudulent flash sales, mandate the appointment of a chief compliance officer and protect Indian sellers by asking e-commerce entities to offer products sourced from local producers when they offer a similar imported item for sale.

A senior official said that inadvertently the notice that was put out initially by the consumer affairs ministry mentioned the deadline as August 5 and subsequently, the date was changed. The deadline is July 21, the official added.

The Consumer Protection (E-Commerce) Rules, 2020, were first notified in July last year. Their violations attract penal action under the Consumer Protection Act, 2019.

Among other amendments, the government has proposed registration of every e-commerce entity which intends to operate in India with the Department for Promotion of Industry and Internal Trade (DPIIT).

Sources said the Government decided to heed the plea for an extension in the deadline after some representatives submitted that they wanted more time to reply as their initial impression was that the draft guidelines will not help consumers.

The Indo American Chamber of Commerce (IACC) said the regulations could increase compliance liabilities, affect global investor sentiment and severely impair growth of the online commerce sector.

But a clutch of startups called Atmanirbhar Digital India Foundation, that aims to counter the e-commerce giants, said the rules showed a ‘strong signal of intent’ to make ‘forward looking’ policies, and ‘ensure level playing field for all e-commerce players’.

It opined that banning flash sales will ensure all sellers get an equal footing in India’s e-commerce growth.

From the competition law perspective, the proposed rules explicitly mention that no e-commerce entity shall mislead the users by manipulating search results or search indexes, it noted.