Proposed amendments to e-commerce rules disincentive to consumers: IAMAI

| | New Delhi
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Proposed amendments to e-commerce rules disincentive to consumers: IAMAI

Tuesday, 27 July 2021 | PTI | New Delhi

Industry body IAMAI on Monday termed the proposed amendments to the Consumer Protection (E-Commerce) Rules 2020 as a “deterrent” for the industry’s growth, and pointed out several ambiguities that it claimed are likely to have unintended negative consequences for consumers.

  The Internet and Mobile Association of India (IAMAI) has suggested excluding the entire value chain from the ambit of e-commerce definition, clarifying the flash sale concept, and confining the rules to protect the rights and interests of the consumers as “in its current form, they fall under the jurisdiction of Competition law, legal metrology law, intermediary law, etc”.

 In a statement, the association said although it supports the government’s initiatives and regulatory interventions to protect consumer interests, the proposed amendments to the rules raise several concerns and ambiguities from an e-commerce business standpoint that are also likely to have unintended negative consequences for consumers.

 The draft e-commerce rules released by the government on June 21 propose a ban on fraudulent flash sales and mis-selling of goods and services on e-commerce platforms.

Appointment of chief compliance officer/grievance redressal officer are among the key amendments proposed under the Consumer Protection (E-Commerce) Rules, 2020.

 The government on Monday extended till August 5 the deadline for public comments on proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020. Earlier, the last date for public comments on the draft e-commerce rules was July 6.

The IAMAI highlighted that the amendments seek to regulate the entire e-commerce supply chain, many elements of Platform to Business (P2B) and Business to Business (B2B) e-commerce, which are beyond the remit of the parent Consumer Protection Act (CPA).

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