Centre to have access to data
Draft policy calls for setting up of a Central Consumer Protection Authority that will register all e-commerce operators and provide a forum to registered complaints.
New Delhi, Aug. 15: A draft e-commerce policy wants online retailers such as Amazon.com, search engines like Google and social media platforms to locally store data generated by users in India, with the government having access to such data for national security and public policy objective.
According to the 19page draft policy, “a level playing field needs to be provided to domestic players by ensuring that foreign websites involved in e-commerce transactions from India also follow the same rules, including procedures for payment systems, such as two-factor authentication, as in case of domestic companies”.
The draft policy recommends strengthening regulatory vigilance for payments system, curbing discounts in online retail and a single legislation to encompass all aspects of e-commerce with a single regulator to govern the industry.
The draft has been criticised in some quarters, prompting the commerce ministry to tweet on Saturday that “another round of consultation with stakeholders” will be done to address their concerns. “We would like to discuss and consider the inputs from all stakeholders on the upcoming draft-e-commerce Policy,” commerce minister Suresh Prabhu had tweeted on August 11.
Stating that data is the oil of the digital economy, the draft policy said that communication over mobile phones using mobile applications and other exchanges, not only generates a vast array of data, including physical location, financial details, and consumer preference but also creates a dynamic profile of the individual.
“The individual’s profile can be used for a variety of commercial purposes, such as precision marketing, targeted advertisements, and creditworthiness assessment. The history of browsing and search by consumers also generates rich information on consumer preferences and, at times, their potential purchasing power. — PTI