Promises and pitfalls

The Consumer Protection (e-commerce) Rules, 2020, aim to regulate digital commerce in India, ensuring transparency, consumer grievance mechanisms, and accountability, but require stronger implementation for effectiveness

- RAAVI BIRBAL

E-commerce, or the buying and selling of goods and services through online platforms, is a rapidly expanding industry.

The Consumer Protection (E-commerce) Rules, 2020, introduced by the Ministry of Consumer Affairs, Food, and Public Distribution in India under the Consumer Protection Act, 2019, were designed to regulate and protect consumers in the e-commerce sector.

These rules were intended to complement the Act by regulating various e-commerce activities.

The Rules, 2020, were brought to regulate all goods and services bought and sold over digital or electronic networks, including digital products; all models of e-commerce, including marketplace and inventory models; all e-commerce retail, including multi-channel single-brand retailers and single-brand retailers in single or multiple formats; and all forms of unfair trade practices across all models of e-commerce.

However, these rules do not apply to any activity of a natural person carried out in a personal capacity, not being part of any professional or commercial activity undertaken on a regular or systematic basis.

Furthermore, these rules also apply to e-commerce entities not established in India but systematically offering goods or services to consumers in India.

The Ministry also released a notification dated May 17, 2021, introducing the Consumer Protection (E-Commerce) (Amendment) Rules, 2021.