{"id":114809,"date":"2021-06-25T11:18:15","date_gmt":"2021-06-25T05:48:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114809"},"modified":"2021-06-25T11:18:15","modified_gmt":"2021-06-25T05:48:15","slug":"what-indias-new-rules-mean-for-e-marketplaces","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-indias-new-rules-mean-for-e-marketplaces\/","title":{"rendered":"What India\u2019s new rules mean for e-marketplaces"},"content":{"rendered":"\n<p><b><span data-contrast=\"none\">Context:\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The Centre has proposed additions and changes to the Consumer Protection (E-commerce) Rules, 2020. This has caused confusion among e-commerce firms and stakeholders.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">To whom the new rules applicable?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">According to the definition provided in the rules, these rules apply to &#8220;all goods and services bought or sold over digital or electronic networks including digital products&#8221;.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">These rules apply to<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"23\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Large marketplaces<\/span><\/b><span data-contrast=\"none\">\u00a0such as Amazon, Flipkart<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"24\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Food aggregators\u00a0<\/span><\/b><span data-contrast=\"none\">Swiggy\u00a0and Zomato,\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"25\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Single\u200abrand e-commerce sites\u00a0and grocery sites<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"26\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Specialised\u00a0vertical-led platforms\u00a0<\/span><\/b><span data-contrast=\"none\">such as\u00a0FirstCry,\u00a0Nykaa<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"27\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Taxi aggregators\u00a0<\/span><\/b><span data-contrast=\"none\">such as Ola and Uber<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"28\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Big techs<\/span><\/b><span data-contrast=\"none\">\u00a0including Facebook Marketplace.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">What are the major challenges with the rules?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"29\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Multiple ministries governing operations of e-commerce firms<\/span><\/b><span data-contrast=\"none\">:\u00a0The rules come at a time when DPIIT is working to release a separate e-commerce policy and the IT ministry is working on the Personal Data Protection Bill.\u00a0This is likely to create fresh regulatory bottlenecks, overlaps, and ambiguities in terms of law for e-commerce players in the country.<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"30\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Increase the compliance burden\u00a0of e-commerce firms<\/span><\/b><span data-contrast=\"none\">:\u00a0For insta\u00adnce, the rules require all e-com\u00admerce firms to appoint a grievance officer, a chief compliance officer and a 24&#215;7 nodal officer.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"31\" data-aria-level=\"1\"><span data-contrast=\"none\">Several proposals\u00a0require\u00a0<\/span><b><span data-contrast=\"none\">either a change in their existing business model or for them to make product changes<\/span><\/b><span data-contrast=\"none\">.\u00a0For instance,\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"2\"><span data-contrast=\"none\">The rules ask e-tailers to send a notification and suggest \u201calternative\u201d\u00a0goods manufactured in India. So,\u00a0the\u00a0e-commerce firms not only have to rank goods but also come up with a framework such that the ranking does not discriminate against domestic goods and sellers.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"2\"><span data-contrast=\"none\">No marketplace or e-commerce entity will be allowed to sell goods or services to any person who is registered as a seller on its platform.\u00a0Companies argue that with such restrictions\u00a0will be near impossible.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"32\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Not a level playing field<\/span><\/b><span data-contrast=\"none\">:\u00a0Offline retail stores often have\u00a0selected\u00a0previews and better discounts for their\u00a0<\/span><b><span data-contrast=\"none\">loyalty\u00a0programme\u00a0customers<\/span><\/b><span data-contrast=\"none\">.\u00a0If the argument is to have a level playing\u00a0field,\u00a0then the government\u00a0must\u00a0create similar rules in the offline market too.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Conclusion:\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">Online marketplaces promote competition, enable transparency in terms of product offering, prices, delivery speed and returns. So, the draft policy needs a relook.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Read more:<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"33\" data-aria-level=\"1\"><a href=\"https:\/\/forumias.com\/blog\/draft-e-commerce-rules-and-their-challenges\/\"><span data-contrast=\"none\">Draft e-commerce rules and their challenges \u2013 Explained, pointwise<\/span><\/a><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"22\" aria-setsize=\"-1\" data-aria-posinset=\"34\" data-aria-level=\"1\"><a href=\"https:\/\/forumias.com\/blog\/share-info-with-govt-ban-on-specific-flash-sales-move-to-tighten-e-commerce-norms\/\"><span data-contrast=\"none\">Draft e-commerce rules<\/span><\/a><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Source:\u00a0<\/span><a href=\"https:\/\/epaper.livemint.com\/Home\/ShareArticle?OrgId=24619adec67&amp;imageview=0\"><b><span data-contrast=\"none\">Livemint\u00a0<\/span><\/b><\/a><span data-contrast=\"none\">,<\/span><a href=\"https:\/\/www.business-standard.com\/article\/companies\/consumer-protection-rules-decoding-the-impact-on-e-commerce-firms-buyers-121062301907_1.html\"><b><span data-contrast=\"none\">Business Standard\u00a0<\/span><\/b><\/a><span data-contrast=\"none\">and\u00a0<\/span><a href=\"https:\/\/epaper.timesgroup.com\/Olive\/ODN\/TimesOfIndia\/PrintArticle.aspx?doc=TOIDEL\/2021\/06\/24&amp;entity=ar02314&amp;ts=20210623223849&amp;uq=20210618124342&amp;mode=text\"><span data-contrast=\"none\">Times of India<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context:\u00a0\u00a0 The Centre has proposed additions and changes to the Consumer Protection (E-commerce) Rules, 2020. This has caused confusion among e-commerce firms and stakeholders.\u00a0 To whom the new rules applicable?\u00a0 According to the definition provided in the rules, these rules apply to &#8220;all goods and services bought or sold over digital or electronic networks including&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-indias-new-rules-mean-for-e-marketplaces\/\">Continue reading <span class=\"screen-reader-text\">What India\u2019s new rules mean for e-marketplaces<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,8043,9],"tags":[8162,3356],"class_list":["post-114809","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-current-affairs-cat","category-public","tag-draft-e-commerce-rules","tag-e-commerce","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704952729},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114809"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114809\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}