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PROPOSED AMENDMENTS TO CONSUMER PROTECTION (E-COMMERCE) RULES, 2020

PROPOSED AMENDMENTS TO CONSUMER PROTECTION (E-COMMERCE) RULES, 2020

Context:

Recently, the Union Government has released the draft of the proposed amendments to the Consumer Protection (E-commerce) Rules, 2020.

Proposed Rules:

  • As per the proposed rules, the e-commerce platforms will have to appoint a Chief Compliance Officer, a Nodal Officer and a Resident Grievance Officer.
  • Companies will have to name a resident grievance officer who has to be a company employee and a citizen of India. He will serve as a nodal point of contact for law enforcement agencies.
  • Every e-commerce entity has to be registered with the Department for Promotion of Industry and Internal Trade (DPIIT).
  • These rules also propose to limit ‘flash sales’ of goods and services by e-commerce companies.
  • However, it does not prohibit Conventional e-commerce flash sales.
  • Some specific flash sales or back-to-back sales that increase prices, limit customers choice & prevent a level playing field will not be allowed.

Background:

  • This decision was taken after getting numerous complaints from small businesses. They have accused the e-commerce marketplace of wrongly using market dominance and deep discounting by online retailers.

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