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Policy creep: On e-commerce and overregulation risks

-The Hindu

Overregulation risks retarding growth and job creation in the e-commerce sector 

Barely 11 months after the Government notified the Consumer Protection (E-Commerce) Rules, 2020, the Department of Consumer Affairs has mooted a set of sweeping amendments, ostensibly “to protect the interests of consumers... and encourage free and fair competition in the market”. Among them is a norm stipulating the appointment of a chief compliance officer, a nodal contact person for 24x7 coordination with law enforcement agencies, and another requiring e-commerce entities offering imported goods or services to ‘incorporate a filter mechanism to identify goods based on country of origin and suggest alternatives to ensure a fair opportunity to domestic goods’. A third mandates a fall-back liability on online marketplaces in the event of non-delivery of goods or services to the consumer. Registration has also been made mandatory for all e-commerce players; specific ‘flash sales’, including ‘back-to-back’ ones, are set to be banned; and all entities must provide information within 72 hours on any request made by an authorised government agency probing any breach of law including cybersecurity issues. While on the face of it none of these new rules appears exceptionable, especially when e-commerce tops the National Consumer Helpline’s complaints chart, there is still a distinctly discernible pattern to the changes. Following on the heels of the recent IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, the draft e-commerce amendments show the Government’s increasing keenness to exercise greater oversight over all online platforms.

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