Homeretail News

    New e-commerce rules to be notified soon: This is what changes for consumers under the Consumer Protection Act

    retail | IST

    New e-commerce rules to be notified soon: This is what changes for consumers under the Consumer Protection Act

    Mini

    Your e-commerce shopping experience is set to change soon. From having a grievance redressal officer to no cancellation charges, life for the consumer is set to get smoother. Here’s a look at what the 2020 rules will mean for customers and the e-commerce companies themselves.

    Your e-commerce shopping experience is set to change soon. From having a grievance redressal officer to no cancellation charges, life for the consumer is set to get smoother. CNBC-TV18 has learnt that the Consumer Protection (Ecommerce) Rules, 2020 which fall under the Consumer Protection Act will be notified as early as this week itself. It is noteworthy here that the Consumer Protection Act, 2019 itself has come into effect today, July 20.
    Here’s a look at what the 2020 rules will mean for customers and the e-commerce companies themselves.
    Easier grievance redressal
    E-commerce companies will have to appoint a grievance officer for consumer grievance redressal. The platform must display the name, contact details, and designation of such an officer. The grievance officer must acknowledge receipt of consumer complaint within 48 hours and must redress the complaint within one month from the date of receipt. Moreover, each seller on the platform will also have to appoint a grievance officer separately.
    Easier product returns, no unjustified prices
    Once enforced, sellers cannot refuse to take back goods or withdraw services or refuse refunds, if such goods or services are defective, deficient, delivered late, or if they do not meet the description on the platform.
    You may have often found the delivered products are widely different from the image on the website. E-commerce companies will have to take an undertaking from sellers to ensure that descriptions, images of goods, or services on their platform are accurate.
    Also, e-commerce companies won't be allowed to impose cancellation charges on consumers canceling after confirming a purchase, unless the e-commerce companies pay a similar charge when they cancel an order unilaterally for any reason.
    Additionally, e-commerce companies won't be allowed to manipulate the price of the goods or services to gain unreasonable profit through unjustified prices.
    Consumer consent
    You may have often found e-commerce platforms clubbing their own offers as a pre-ticked checkbox when you are checking out, which gets added to your billing value. This won't be allowed going forward. Any consent from the consumer has to be taken through an explicit and affirmative action, according to the 2020 rule.
    Liabilities on e-commerce companies
    E-commerce companies will have to appoint a nodal person of contact who is a resident in India for ensuring compliance with the act. Companies must also display important information to customers on the platform, including:
    • Name, address, contact details of the entity
    • Seller details including name, registration, address, customer care number, rating
    • Information relating to the security of payment methods, fees or charges payable
    • Information relating to return, refund, exchange of goods
    • The breakup of prices for goods and services
    •  
      Liabilities on inventory-based companies
      The rules also lay down guidelines for inventory-based e-commerce companies, which are largely similar to what applies to the sellers on marketplaces.  Inventory e-commerce entities vouching for the authenticity of goods or services shall bear liability for such goods or services.
      Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
      next story

        Most Read

        Market Movers

        View All
        CompanyPriceChng%Chng