E-COMMERCE LAWS IN INDIA: SRISHTI

E-COMMERCE LAWS BY SARISHTI

TABLE OF CONTENTS

Abstract

2 Introduction.

3 Types of business model under E-commerce .

4 Law governing e-commerce.

5 E- commerce FDI policy

6 Sale shipping and refunds under E-commerce

7 Conclusion.

1. ABSTRACT

Electronic Commerce is the process of doing business through computer networks. A person sitting on his chair in front of a computer can access all the facilities of the Internet to buy or sell products. Unlike traditional commerce which is carried out physically with the effort of a person to go & get products, eCommerce has made it easier for humans to reduce physical work and save time.

2 INTRODUCTION

Electronic commerce and data are emerging as key enablers and critical determinants of India’s growth and economic development. India is the fastest-growing market for the e-commerce sector. Source: IBEF E-commerce in India has attracted investors from across the world. Within a short period in the recent past, the significance of economic activities in the digital space has grown substantially, both globally and in India. There is no universally accepted definition of e-commerce. Yet various definitions have been drawn by different organizations. A few such definitions of e-commerce are as below: Department for Promotion of Industry and Internal Trade (DPIIT), FDI Policy, 2017: “eCommerce” means buying and selling of goods and services, including digital products over a digital and electronic network. Ministry of Electronics and Information Technology (MeitY): “e-Commerce” is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business, business-to-consumer, consumer-to-consumer, and consumer-to-business.

3 Types Of Business Models Under E-Commerce

The most common business models facilitated by e-commerce are: Business to Business (B2B) B2B describes commerce transactions between various businesses thereby enabling various businesses to build new relationships with other businesses such as between manufacturers and wholesalers, or between a wholesaler and a retailer. Business to Consumer (B2C) B2C describes the activities of businesses serving end consumers with products and/or services. Consumer to Consumer (C2C) C2C involves electronically facilitated transactions between consumers through some third party. Traditionally consumers have had dealings with other consumers, but only a few of those activities were in a commercial sense. Consumer to Business (C2B) C2B involves consumers which provide goods/services to businesses and create value for the business. Business to Business to Consumer (B2B2C) This is an alternative to the B2C model in which there is an additional intermediary business to assist the first business to transact with the end consumer. For instance, Flipkart is one of the successful e-commerce portals which provides a stage for consumers to purchase a wide range of products.

4 Laws Governing E-Commerce Information Technology Act, 2000 ("IT Act")

There are different provisions under the IT Act that guide the working of e-commerce. Section 84A of the IT Act cast a duty on the Central Government the promotion of e-governance and e-commerce. It also has to provide for the secure use of electronic means. Provisions regarding data protection are contained in Section 43A of the IT Act. Section 66A of the IT Act imposes a penalty in case of theft of identity and provides that whosoever person dishonestly uses the password, or identity of another shall be punished with imprisonment that may extend to 2 years or with a fine of INR 1,00,000/- or both. Consumer Protection Act, 2019 and Consumer Protection (E-Commerce) Rules, 2020 The Ministry of Consumer Affairs, Food and Public Distribution has recently notified the Consumer Protection Act, 2019 (CPA 2019) and the Consumer Protection (E-Commerce) Rules, 2020 (E-Commerce Rules). The CPA 2019 introduced significant changes to the 1986 consumer protection law, to address unique issues arising in this era of digitization and e-commerce. The E-Commerce Rules provide a framework to regulate the marketing, sale, and purchase of goods and services online.

5 E-commerce FDI Policy

There are two models of E-Commerce Laws as defined in the Indian FDI Policy: Marketplace Model: Ecommerce business registration on a digital and electronic network to serve as a facilitator between buyer and seller is known as the marketplace-based model of e-commerce. The marketplace charges sellers a commission for the service it renders. The largest online marketplaces now operating in the nation are Naaptol and Shopclues. Inventory Model: A business that engages in online commerce using an inventory-based model possessing a supply of products and services that are sold directly to customers. Likewise, the seller is an online retailer that stocks it straight from brands and sellers. One such example is Myntra. 6 Sales, Shipping, Refunds, and Returns under E-commerce The Sale of Goods Act, 1930 regulates what information the entity’s sales and shipping policy must provide. Moreover, such as the guarantees, terms, and the transfer of ownership in commodities. In addition, the policy must state whether return/refund options are available or not.

7 Conclusion

The e-commerce industry's rapid growth not only reflects the public's growing acceptance of it but has also brought to the fore concerns that the country's legal system has been dealing with. The laws for e-commerce are quite uncondensed of statutes as there is no specific codified law. The companies will need to look at such a perspective of the particular situation for which the laws are to be considered. To succeed in this field, e-commerce enterprises must have a thorough awareness of the legal regime and the potential challenges that an e-commerce business may encounter, as well as appropriate risk management measures.