Government to regulate online business

 The government is going to regulate the online business as the complaints against them has been increasing lately.

The online traders could be fined up to Rs 200,000, if they operate online business without taking license and breach the laws of e-commerce platforms, according to a draft ‘Electronic Business Act 2020’, prepared by the Ministry of Industry, Commerce and Supplies. The draft ‘Electronic Business Act 2020,’ also envisions actions against unscrupulous traders for cheating consumers. 

After the government imposed lockdown on March 24 – to contain the spread the coronavirus – many online business platforms came to existence to serve the people. With the increasing scope of e-commerce in the domestic market, the government also felt the need to bring laws to protect the consumers as there are some incidents, where consumers complained to the Department of Commerce, Supplies and Consumer Protection of being cheated by the sellers. “Most of the complaints are related to misleading advertisements, selling of substandard products and problems in returning the sold items,” the department confirmed, adding that in a number of cases, the buyers even had to wait for over a month to get their money back, if in case the goods were returned to the sellers. “The proposed act has sought to make sellers refund money to the clients as soon as possible, if the sold goods are defective or not the same as ones ordered by the buyers.”

“The online business operators should create electronic platform including a website, where they have to clearly mention details including contact number, officials to take complaints of consumers, price of goods, transport cost, service charge and any additional taxes, if applicable,” the draft reads, adding that the operators will be liable to the grievances of the buyers.

According to the draft law, all players in online business – from producers to sellers and service providers – will also have to take separate licenses.