Govt wants to stop deep discounts, fake reviews and counterfeits in e-commerce

November 13, 2019: Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food & Public Distribution (MCAFPD), on Monday notified the draft rule ‘Consumer Protection (e-Commerce) Rules, 2019’ which prohibits e-commerce companies from offering deep discounts.

Listed along with seven other rules to be notified under the Consumer Protection Act, 2019, the draft rule also wants to prevent the players from giving fake reviews and present counterfeit goods in their platforms.

“An e-commerce entity shall not

1. Directly or indirectly influence the price of the goods or services and shall maintain a level playing field.

2. Adopt any trade practice which for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, or composite supply, adopts any unfair methods or unfair or deceptive practice that may influence transactional decisions of consumers in relation to products and services.

3. Falsely represent themselves as consumers or post reviews about goods and services in their name; or misrepresents or exaggerates the quality or the features of goods and services,” reads the draft rule.

The draft rule demands e-commerce players to be transparent on return, refund, exchange, warranty, guarantee, delivery, shipment, mode of payments, grievance redressal mechanism and display the terms of contract with sellers. The government wants these companies to take responsibility for the quality and safety & healthcare information of products advertised.

The notification also explains the methods to follow in case of return, refund or after receiving any information about counterfeit products.

The notification invited views, comments and suggestions from the stakeholders on the draft Rules to be before December 02, 2019.