Supreme Court lawyer says draft e-commerce rules need massive correction

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The government must hold a broader consultation before defining e-commerce rules as in the current format, it encroaches on the realm of various other legal executives and establishments, a senior legal expert said on Friday.

The draft e-commerce rules released by the government on June 21 proposed to prohibit fraudulent flash sale and the improper sale of goods and services on e-commerce platforms.

It also provides that the appointment of a Chief Compliance Officer / Grievance Officer, among other key proposed changes to consumer protection (e-commerce) rules, 2020.

Gopal Jain, Senior Counsel, Supreme Court of India, told reporters,

“The proposed changes go beyond the scope and scope of the Consumer Protection Act and indirectly regulate e-commerce entities by imposing additional obligations. growth of MSMEs, global investment and consumer experience. “

He said the proposed standards are a indirect attempt to regulate the online space by bludgeoning multiple issues relating to the law that aims to assess and investigate the negative impact on consumers.

“Wider consultation is needed before the government sets the rules for e-commerce,” Jain said.

Jain believes that holding e-commerce companies accountable for products sold by other sellers and the proposed restrictions on the sale of products by related parties on the platform will hurt the business of MSMEs.

“The rules impose back-up liability strikes at the root of the e-commerce market, making them liable for fraud committed by a seller when platforms are simply responsible for passing on information provided by the seller,” the lawyer said. .

He added that the draft rules are contrary to the principles of proportionality, which requires a balanced and graduated approach.

Before that, the Confederation of All Indian Traders (CAIT) had in a note to Prime Minister Narendra Modi: “As a result of the pressure tactics expected from foreign-invested e-commerce companies against the draft e-commerce rules… (we urged him) to ensure that no dilution is made in the draft electronic commerce rules under any pressure. “

(Disclaimer: Additional general information has been added to this PTI copy)


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