Modified e-commerce rules are the barriers to the consumers: IAMAI


The IAMAI said that it supports the government initiatives and interventions to protect the consumer’s interest, the proposed amendments raise several issues from an e-commerce business standpoint.

The proposed amendments to e-commerce protection Rules 2020 are the barriers for the growth of industry, the  Internet and Mobile Association of India (IAMAI) suggested that a) excluding the entire value chain from the range of e-commerce definition. b) Simplify the flash scale concept c) Confining the rules to protect the interests of the consumers fall under the jurisdiction of competition law etc.

It also highlighted the amendments that seek to regulate the entire e-commerce supply chain, a platform to business, and business to business (B2B) which are the beyond parent Consumer Protection Act.

To provide a level playing field between online and offline e-commerce amendments are also failed. Under this, e-commerce will face several restrictions and an increase in compliance burden also for the start-ups.

Based on the rules, IAMAI mentioned that the amendment to the definition of e-commerce entities goes beyond the Definition of the e-commerce entities and under legislation such as Foreign Exchange Management Rules, 2019.

It also recommended the clauses concerning fallback liability, Internal trade, and lead to over-regulation of the sector and impede the innovation of access to small sellers.

Fall Back liability, this concept is to dilute the safe harbor under the provisions of the IT Act and FDI policy. In India, it can also change the landscape of e-commerce.

The association suggested that there will no reason to stop the flash sales on the e-commerce platform when the normal brick and mortar store offers flash sales.

Flash sales should be very clear and explicit from the customer’s point of view to avoid doubtfulness and to make sure that consumers are not suffering on benefiting from flash sales.

Based on the mis-selling, the association pointed out that these are the contradictions with seller’s liabilities in eCommerce rules and role performed by the e-commerce entities under the FDI laws and the IT Act.

Association is of the view that earlier the set of rules were notified and a few months back they were better served the needs of the consumers.

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