In its suggestions to the Department of Consumer Affairs, affiliate RSS said there was a general impression that the rules were applicable to all parties involved in e-commerce, “which is not true” because the Consumer Protection Act does not apply to traders and service providers.
“It is therefore suggested that this aspect be clarified by way of clarification by the Ministry (of Consumption), and the Department for the Promotion of Industry and Domestic Trade (DPIIT) should establish appropriate rules for the protection of traders. and service providers who take advantage of services through e-commerce for commercial purposes, ”the company said.
The SJM said that there are many merchants and service providers, who do not enjoy any protection under the law, due to “inadequate or non-existent” e-commerce laws.
“Small merchants on Amazon, Flipkart-Walmart; drivers on Uber, Ola, etc. ; small restaurants involved in Zomato, etc. ; hairdressers, carpenters, electricians and others on Urban Clap, etc. ; and many other workers are subjected to serious hardship by these e-commerce giants, having no protection against exploitation, ”he said.
The LSU called the provision for mandatory registration of e-commerce entities under the proposed rules a “welcome step”, saying it will go a long way in regulating e-commerce giants “for any wrongdoing on their part. “.
“However, it is suggested, to avoid any difficulty for e-commerce entities with a very small consumer base in India, a threshold can be prescribed for compulsory registration,” he said.
This would save small e-commerce players from “avoidable compliances,” he said, and suggested that the definition of micro, small and medium-sized enterprises (MSMEs) “could be adopted” to define small e-commerce players in businesses. proposed rules.
Affiliate RSS also called for wording changes to the e-business registration rules to include within its scope even e-commerce entities that do not establish offices in India but still have ” a lot of income “generated by consumers located in the country.
“The DPIIT must also create a monitoring mechanism to identify failing e-commerce entities and must also have an arbitration mechanism to penalize these failures,” he said.
The SJM suggested that the rules should provide for capacity building for the inspection and enforcement of e-commerce transactions, unfair trade practices, price manipulation, search algorithm and other technical aspects of transactions. digital technologies from a consumer protection perspective.
“Electronic courts can be created to resolve consumer grievances,” he said.
The LSU noted that e-commerce companies, under the proposed rules, are required to appoint compliance officers, nodal contact persons and resident grievance officers who are residents and citizens of the country.
Affiliate RSS suggested that the concept of “defaulting agent” as included in the Companies Act 2013 should also be introduced into e-commerce rules, “so that persons in accordance with advice, guidelines or instructions from which the e- Law on Commercial Entities can be brought to justice in case of contravention of the law and the rules of electronic commerce “.