{"id":232776,"date":"2020-07-24T10:50:24","date_gmt":"2020-07-24T05:20:24","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=232776"},"modified":"2020-07-24T11:05:12","modified_gmt":"2020-07-24T05:35:12","slug":"consumer-protection-e-commerce-rules-2020-comes-into-force-no-cancellation-charges-on-consumers-cancelling-after-confirming-purchase-read-notification","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/24\/consumer-protection-e-commerce-rules-2020-comes-into-force-no-cancellation-charges-on-consumers-cancelling-after-confirming-purchase-read-notification\/","title":{"rendered":"Consumer Protection (E-Commerce) Rules, 2020 comes into force; No cancellation charges on consumers cancelling after confirming purchase"},"content":{"rendered":"<blockquote>\n<p style=\"text-align: center;\"><span style=\"color: #800080;\">Consumer Protection (E-Commerce) Rules, 2020 comes into force.\u00a0<\/span><\/p>\n<\/blockquote>\n<h4 style=\"text-align: justify;\"><span style=\"color: #800000;\">What is the scope of these rules?<\/span><\/h4>\n<p style=\"text-align: justify;\">(1) Save as otherwise expressly provided by the Central Government by notification, these rules shall apply to:<\/p>\n<p style=\"text-align: justify;\">(a) all goods and services bought or sold over digital or electronic network including digital products;<\/p>\n<p style=\"text-align: justify;\">(b) all models of e-commerce, including marketplace and inventory models of e-commerce;<\/p>\n<p style=\"text-align: justify;\">(c) all e-commerce retail, including multi-channel single brand retailers and single brand retailers in single or multiple formats; and<\/p>\n<p style=\"text-align: justify;\">(d) all forms of unfair trade practices across all models of e-commerce: Provided that these rules shall 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.<\/p>\n<p style=\"text-align: justify;\">(2) Notwithstanding anything contained in sub-rule (1), these rules shall apply to a e-commerce entity which is not established in India, but systematically offers goods or services to consumers in India<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #800000;\">Duties of e-commerce entities?<\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">An e-commerce entity shall: <\/span><\/p>\n<p style=\"text-align: justify;\">(a) be a company incorporated under the Companies Act, 1956\u00a0 or the Companies Act, 2013 or a foreign company covered under clause (42) of section 2 of the Companies Act, 2013 or an office, branch or agency outside India owned or controlled by a person resident in India as provided in sub-clause (iii) of clause (v) of section 2 of the Foreign Exchange Management Act, 1999; and<\/p>\n<p style=\"text-align: justify;\">appoint a nodal person of contact or an alternate senior designated functionary who is resident in India, to ensure compliance with the provisions of the Act or the rules made thereunder.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Every e-commerce entity shall provide the following information in a clear and accessible manner on its platform, displayed prominently to its users, namely:&#8211; <\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>legal name of the e-commerce entity;<\/li>\n<li>principal geographic address of its headquarters and all branches;<\/li>\n<li>name and details of its website; and<\/li>\n<li>contact details like e-mail address, fax, landline and mobile numbers of customer care as well as of grievance officer.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">\u00a0No e-commerce entity shall adopt any unfair trade practice<\/span>, whether in the course of business on its platform or otherwise.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Every e-commerce entity shall establish an adequate grievance redressal mechanism<\/span> having regard to the number of grievances ordinarily received by such entity from India, and shall appoint a grievance officer for consumer grievance redressal, and shall display the name, contact details, and designation of such officer on its platform.<\/p>\n<p style=\"text-align: justify;\">Every e-commerce entity shall ensure that the grievance officer referred to in sub-rule (4) acknowledges the receipt of any consumer complaint <span style=\"color: #008000;\">within forty-eight hours and redresses the complaint within one month from the date of receipt of the complaint. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Where an e-commerce entity offers imported goods or services for sale, it shall mention the name and details of any importer from whom it has purchased such goods or services, or who may be a seller on its platform.<\/span><\/p>\n<p style=\"text-align: justify;\">Every e-commerce entity shall endeavour on a best effort basis to become a partner in the convergence process of the <span style=\"color: #008000;\">National Consumer Helpline of the Central Government. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">No e-commerce entity shall impose cancellation charges on consumers cancelling after confirming purchase unless similar charges are also borne by the e- commerce entity<\/span>, if they cancel the purchase order unilaterally for any reason.<\/p>\n<p style=\"text-align: justify;\">Every e-commerce entity shall only record the consent of a consumer for the purchase of any good or service offered on its platform where such consent is expressed through an explicit and affirmative action, and no such entity shall record such consent automatically, including in the form of pre-ticked checkboxes.<\/p>\n<p style=\"text-align: justify;\">Every <span style=\"color: #008000;\">e-commerce entity shall effect all payments towards accepted refund requests of the consumers as prescribed by the Reserve Bank of India<\/span> or any other competent authority under any law for the time being in force, within a reasonable period of time, or as prescribed under applicable laws.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">No e-commerce entity shall&#8211;<\/span><\/p>\n<p style=\"text-align: justify;\">(a) manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price having regard to the prevailing market conditions, the essential nature of the good or service, any extraordinary circumstances under which the good or service is offered, and any other relevant consideration in determining whether the price charged is justified;<\/p>\n<p style=\"text-align: justify;\">(b) discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">What all are the liabilities of marketplace e-commerce entities?<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\">E-commerce entity which seeks to avail the <span style=\"color: #008000;\">exemption from liability under sub-section (1) of section 79 of the Information Technology Act, 2000 shall comply with sub-sections (2) and (3) of that section<\/span>, including the provisions of the Information Technology (Intermediary Guidelines) Rules, 2011.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">E-commerce entity shall require sellers through an undertaking to ensure that descriptions, images, and other content pertaining to goods or services on their platform is accurate<\/span> and corresponds directly with the appearance, nature, quality, purpose and other general features of such good or service.<\/p>\n<p style=\"text-align: justify;\">Every marketplace e-commerce entity shall include in its terms and conditions generally governing its relationship with sellers on its platform, a description of any differentiated treatment which it gives or might give between goods or services or sellers of the same category.<\/p>\n<p style=\"text-align: justify;\">Every marketplace e-commerce entity shall take reasonable efforts to maintain a record of relevant information allowing for the identification of all sellers who have repeatedly offered goods or services that have previously been removed or access to which has previously been disabled under the Copyright Act, 1957 , the Trade Marks Act, 1999 or the Information Technology Act, 2000:<\/p>\n<p style=\"text-align: justify;\">Provided that no such e-commerce entity shall be required to terminate the access of such seller to its platform pursuant to this sub-rule but may do so on a voluntary basis.<\/p>\n<p style=\"text-align: justify;\">The new rules alongwith the above, also contain the duties laid down for the sellers on marketplace e-commerce &amp; Duties and liabilities of inventory e-commerce entities.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #ff0000;\"><strong>To read the detailed notification, please click on the link below:<\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" href=\"http:\/\/egazette.nic.in\/WriteReadData\/2020\/220661.pdf\">NOTIFICATION<\/a><\/strong><\/span><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Ministry of Consumer Affairs, Food and Distribution<\/strong><\/span><\/p>\n<p style=\"text-align: right;\"><span style=\"color: #333399;\"><strong>[Notification dt. 23-07-2020]<\/strong><\/span><\/p>\n<p><span style=\"color: #333399;\"><strong>[Image Credits: Forbes.com]<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumer Protection (E-Commerce) Rules, 2020 comes into force.\u00a0 What is the scope of these rules? (1) Save as otherwise expressly provided by <\/p>\n","protected":false},"author":8808,"featured_media":232778,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[42690,42689],"class_list":["post-232776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations","tag-e-commerce-entity","tag-e-commerce-rules-2020"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consumer Protection (E-Commerce) Rules, 2020 comes into force; No cancellation charges on consumers cancelling after confirming purchase | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/24\/consumer-protection-e-commerce-rules-2020-comes-into-force-no-cancellation-charges-on-consumers-cancelling-after-confirming-purchase-read-notification\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consumer Protection (E-Commerce) Rules, 2020 comes into force; No cancellation charges on consumers cancelling after confirming purchase\" \/>\n<meta property=\"og:description\" content=\"Consumer Protection (E-Commerce) Rules, 2020 comes into force.\u00a0 What is the scope of these rules? 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The amendment makes it mandatory for the e-commerce entity to appoint a nodal officer or an alternative senior designated person to\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":278689,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/28\/provision-for-sale-of-insecticides-through-e-commerce-entity-introduced-vide-insecticides-second-amendment-rules-2022\/","url_meta":{"origin":232776,"position":1},"title":"Provision for sale of Insecticides through e-commerce entity introduced vide Insecticides (Second Amendment) Rules, 2022","author":"Bhumika Indulia","date":"November 28, 2022","format":false,"excerpt":"The Central Government has notified to Insecticides (Second Amendment) Rules, 2022 in order to amend the Insecticides Rules, 1971. In the Insecticides Rules, 1971, in rule 9 relating to Licences to manufacture insecticides, the following proviso has been inserted in sub-clause 3: \u201cProvided that the licensing officer shall inspect the\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":232551,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/20\/consumer-protection-act-2019-comes-into-force-from-today\/","url_meta":{"origin":232776,"position":2},"title":"Consumer Protection Act, 2019 comes into force from today","author":"Bhumika Indulia","date":"July 20, 2020","format":false,"excerpt":"The Consumer Protection Act, 2019 comes in to force from today i.e. 20th\u00a0July 2020. While briefing the media about the Consumer Protection Act, 2019 the Union Minister for Consumer Affairs, Food & Public Distribution Shri Ram Vilas Paswan said that this new Act will empower consumers and help them in\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/10\/Consumer-Protection.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/10\/Consumer-Protection.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/10\/Consumer-Protection.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/10\/Consumer-Protection.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/10\/Consumer-Protection.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":210257,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/18\/call-for-blogs-rgnul-student-research-review-on-regulating-e-commerce-in-india-submit-by-march-15\/","url_meta":{"origin":232776,"position":3},"title":"Call for Blogs: RGNUL Student Research Review on Regulating E-Commerce in India: Submit by March 15","author":"Bhumika Indulia","date":"February 18, 2019","format":false,"excerpt":"Reported by Vijaya Singh","rel":"","context":"In &quot;Law School News&quot;","block_context":{"text":"Law School News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/lawschoolnews\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/02\/Rajiv_Gandhi_National_Universtiy_of_Law-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/02\/Rajiv_Gandhi_National_Universtiy_of_Law-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/02\/Rajiv_Gandhi_National_Universtiy_of_Law-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/02\/Rajiv_Gandhi_National_Universtiy_of_Law-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/02\/Rajiv_Gandhi_National_Universtiy_of_Law-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":270224,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/16\/ccpa-issues-advisory-to-e-commerce-platforms-on-sale-of-ayurvedic-siddha-and-unani-drugs\/","url_meta":{"origin":232776,"position":4},"title":"CCPA issues Advisory to e-commerce platforms on sale of Ayurvedic, Siddha and Unani drugs","author":"Bhumika Indulia","date":"July 16, 2022","format":false,"excerpt":"\u00a0 \u00a0 The Central Consumer Protection Authority (CCPA) has issued an Advisory to e-commerce entities concerning the sale of Ayurvedic, Siddha and Unani drugs containing ingredients listed in Schedule E (1) of the Drugs and Cosmetics Rules, 1945. E-commerce platforms have been advised that the sale or facilitating the sale\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/consumer-protection.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/consumer-protection.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/consumer-protection.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/consumer-protection.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/03\/consumer-protection.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":254930,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/04\/a-misplaced-assertion-harmonisation-of-regulations-is-crucial-for-the-growth-of-e-commerce-in-india\/","url_meta":{"origin":232776,"position":5},"title":"A Misplaced Assertion: Harmonisation of Regulations is crucial for the growth of E-Commerce in India","author":"Bhumika Indulia","date":"October 4, 2021","format":false,"excerpt":"by Ayush Tripathi\u2020 and Abhishek V.\u2020\u2020 Cite as: 2021 SCC OnLine Blog Exp 74","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/10\/MicrosoftTeams-image-62.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/10\/MicrosoftTeams-image-62.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/10\/MicrosoftTeams-image-62.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/10\/MicrosoftTeams-image-62.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/10\/MicrosoftTeams-image-62.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/232776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=232776"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/232776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/232778"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=232776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=232776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=232776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}