Government Unveils Draft Guidelines for E-Commerce Self-Regulation, Seeks Feedback

New Delhi, Jan 22 (KNN) In a bid to protect consumers from fraudulent practices in India’s rapidly expanding e-commerce sector, the government has unveiled draft guidelines for self-regulation.

Prepared by the Bureau of Indian Standards (BIS) under the supervision of the Food and Consumer Affairs Ministry, the draft, titled E-commerce-Principles and Guidelines for Self Governance, is open for stakeholder feedback until February 15.

The guidelines address critical challenges in consumer protection and trust. “The rise of e-commerce has introduced new challenges... clear and effective norms for self-governance are vital,” the draft emphasises.

The framework outlines three key phases for compliance: pre-transaction, contract formation, and post-transaction.

E-commerce platforms are required to verify business partners and third-party sellers through thorough KYC procedures.

Detailed product listings must include titles, seller contact details, identification numbers, and visual aids to help consumers evaluate products. For imported items, importers’ and sellers’ details must be prominently displayed.

Platforms must record consumer consent, offer transparent transaction review systems, and establish clear policies for cancellations, returns, and refunds.

The guidelines mandate diverse payment options including credit/debit cards, mobile payments, e-wallets, and bank transfers, with full disclosure of processing charges.

Comprehensive transaction records must be accessible to consumers. Payment systems should be secure, using encryption and two-factor authentication, with disclosures on any processing charges. Recurring payments must include clear terms and easy opt-out options.

Platforms are expected to adhere to strict timelines for refunds, replacements, and exchanges. They must combat counterfeit products and notify consumers about delivery updates. Cash-on-delivery refunds must align with consumer preferences.

The draft prohibits the sale of banned products and requires platforms to implement monitoring mechanisms and seller background checks.

Consumer reviews must follow IS 19000:2022 standards, ensuring authenticity and transparency.

Additionally, platforms must uphold data protection standards and avoid preferential treatment of any sellers to maintain a level playing field.

Periodic reviews will ensure compliance with the proposed regulations, reinforcing consumer trust in digital marketplaces.

The draft signals the government’s commitment to fostering fair, secure, and transparent e-commerce practices, ensuring consumer interests are safeguarded as the sector continues to thrive.

(KNN Bureau)