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News article | 1 July 2021

Indian government proposes new counter measures against e-commerce fraud

The Indian Central Government recently proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 and sought public comments on banning fraudulent flash sales and mis-selling of goods and services on e-commerce platforms, and also on making registration of these entities mandatory with DPIIT.

According to the official definition; 'Mis-selling' means an e-commerce entity selling goods/services by deliberate misrepresentation of information."

On registration of entities, the government has proposed that every e-commerce operator  which intends to act in India has to register itself with the Department for Promotion of Industry and Internal Trade (DPIIT) within such a period as prescribed by DPIIT for allotment of a registration number.

This new framework will give consumers the necessary tools to take an informed decision when purchasing products through telematic means and allow them to avoid missleading flash-sales, fraud and IPR infringing goods.

 

 

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