New rules to keep a tab on pricing by e-commerce firms

E-commerce companies cannot influence prices of products being sold on their platform and must adhere to fair trade practices, as per the draft rules proposed by the Consumer Affairs Ministry.

The ministry has issued draft The Consumer Protection (e-commerce)

Rules, 2019 and sought comments on the same by December 2.

The ministry has to frame rules under the Consumer Protection Act, 2019, which has recently been passed by Parliament.

Traders’ body CAIT has welcomed the draft rules and said the proposed framework will "force" e-commerce companies to be more transparent and accountable towards customers.

According to the draft, an ecommerce entity should not “directly or indirectly influence the price of the goods or services” and “maintain a level-playing field”.

It should not “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”.

According to the draft rules, ecommerce players have been prohibited to falsely represent themselves as consumers and post reviews, misrepresent or exaggerate the quality or the features of goods and services. The e-commerce entities will also have to furnish details about sellers, including identity of their business, legal name, principal geographic address, name of website, the products they sell, and how they can be contacted by customers.

According to the draft, e-commerce companies will have to protect personal data and information of the customers.

Traders' body has welcomed the draft and said it will “force” e-commerce firms to be more transparent and accountable towards customers