DRAFT E-COMMERCE POLICY

Feb. 24, 2019

Draft E-Commerce Policy aiming at Data Protection has been introduced by the Government of India. Public feedback on it has been sought by March 9.

About: 

  • Background: The draft policy comes after the government updated the FDI policy for online marketplaces in December which puts curbs on how large foreign e-tailers operate in India. 

  • Objective: To strengthen consumer rights with regards to counterfeit products and the overall grievance mechanism, apart from putting in measures to stem the flow of goods through illegal means into the country. 

  • Salient Features: 
    • It puts restrictions on how foreign online retailers, including fast-growing Chinese e-commerce firms, operate in India. 

    • Restricting cross border flow of data and leveraging it to help start-ups are also some of the other key measures proposed. 

    • All e-commerce websites and applications available for downloading in India must have a registered business entity in India as the importer on record or the entity through which all sales in India are transacted. 

    • Consumer/business payments from Indian banks and payment gateways to unauthorised and unregistered (GST non-compliant) sites/apps shall be barred. 

    • If the seller fails to prove the authenticity of the product, the marketplace would have to take it down and remove all information of the same. 

    • All e-commerce sites/apps available to Indian consumers (displaying prices in rupees) must have MRP on all packaged products, physical products and invoices. 



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