LIABILITIES AND DUTIES OF E-COMMERCE ENTITIES (Part 2)

The new Consumer Protection (e-commerce) Rules, 2020 (“the Rules”) would aid in ensuring a fair and transparent marketplace for all stakeholders. This article will delve?into the liabilities and duties of marketplace and inventory e-commerce entities. Furthermore, we will look into the key provisions intended to safeguard the interests of all stakeholders in the e-commerce space.

Liabilities of marketplace e-commerce entities. –

?(1) A marketplace e-commerce entity that seeks to avail the exemption from liability under sub-section (1) of section 79 of the Information Technology Act, 2000 (21 of 2000) shall comply with sub-sections (2) and (3) of that section, including the provisions of the Information Technology (Intermediary Guidelines) Rules, 2011.

(2) Every marketplace e-commerce entity shall require sellers through an undertaking to ensure that descriptions, images, and other content pertaining to goods or services on their platform is accurate and corresponds directly with the appearance, nature, quality, purpose and other general features of such good or service.

(3) Every marketplace e-commerce entity shall provide the following information in a clear and accessible manner, displayed prominently to its users at the appropriate place on its platform:

(a) details about the sellers offering goods and services, including the name of their business, whether registered or not, their geographic address, customer care number, any rating or other aggregated feedback about such seller, and any other information necessary for enabling consumers to make informed decisions at the prepurchase stage:

Provided that a marketplace e-commerce entity shall, on a request in writing made by a consumer after the purchase of any goods or services on its platform by such consumer, provide him with information regarding the seller from which such consumer has made such purchase, including the principal geographic address of its headquarters and all branches, name and details of its website, its email address and any other information necessary for communication with the seller for effective dispute resolution;

(b) a ticket number for each complaint lodged through which the consumer can track the status of the complaint;

(c) information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism, and any other similar information that consumers may require to make informed decisions;

(d) information on available payment methods, the security of those payment methods, any fees or charges payable by users, the procedure to cancel regular payments under those methods, chargeback options, if any, and the contact information of the relevant payment service provider;

(e) all information provided to it by sellers under sub-rule (5) of rule 6 and

(f) an explanation of the main parameters that, individually or collectively, are most significant in determining the ranking of goods or sellers on its platform and the relative importance of those main parameters through a readily and publicly available description drafted in plain and intelligible language.

(4) Every marketplace e-commerce entity shall include in its terms and conditions generally governing its relationship with sellers on its platform a description of any differentiated treatment it gives or might give between goods or services or sellers of the same category.

(5) Every marketplace e-commerce entity shall take reasonable efforts to maintain a record of relevant information allowing for the identification of all sellers who have repeatedly offered goods or services that have previously been removed or access to which has previously been disabled under the Copyright Act, 1957 (14 of 1957), the Trade Marks Act, 1999 (47 of 1999) or the Information Technology Act, 2000 (21 of 2000):

Provided that no such e-commerce entity shall be required to terminate the access of such seller to its platform pursuant to this sub-rule but may do so voluntarily.

Duties and liabilities of inventory e-commerce entities: -

(1) Every inventory e-commerce entity shall provide the following information in a clear and accessible manner, displayed prominently to its users:

(a) accurate information related to return, refund, exchange, warranty and guarantee, delivery and shipment, cost of return shipping, mode of payments, grievance redressal mechanism, and any other similar information that consumers may require to make informed decisions;

(b) all mandatory notices and information required by applicable laws;

(c) information on available payment methods, the security of those payment methods, the procedure to cancel regular payments under those methods, any fees or charges payable by users, chargeback options, if any, and the contact information of the relevant payment service provider;

(d) all contractual information required to be disclosed by law;

(e) total price in the single figure of any good or service along with the breakup price for the good or service, showing all the compulsory and voluntary charges, such as delivery charges, postage and handling charges, conveyance charges and the applicable tax; and

?(f) a ticket number for each complaint lodged, through which the consumer can track the status of their complaint.

(2) No inventory e-commerce entity shall falsely represent itself as a consumer and post reviews about goods and services or misrepresent the quality or the features of any goods or services.

(3) Every inventory e-commerce entity shall ensure that the advertisements for marketing of goods or services are consistent with the actual characteristics, access and usage conditions of such goods or services;

(4) No inventory e-commerce entity shall refuse to take back goods, withdraw or discontinue services purchased or agreed to be purchased, or refuse to refund consideration if paid if such goods or services are defective, deficient, spurious, or if the goods or services are not of the characteristics or features as advertised or as agreed to, or if such goods or services are delivered late from the stated delivery schedule: Provided that in the case of late delivery, this sub-rule shall not apply if such late delivery was due to force majeure.

(5) Any inventory e-commerce entity that explicitly or implicitly vouches for the authenticity of the goods or services sold by it or guarantees that such goods or services are authentic shall bear appropriate liability in any action related to the authenticity of such goods or services.

Contravention of rules. — The provisions of the Consumer Protection Act 2019 (35 of 2019) shall apply for any violation of the provisions of these rules.

Conclusion

The Consumer Protection (E-Commerce) Rules, 2020, is a significant step in India’s journey towards creating a fair and transparent e-commerce network for all stakeholders. These Rules define the duties and liabilities of marketplace and inventory e-commerce entities and establish a comprehensive framework to protect consumer interests and promote ethical business practices. By properly implementing these Rules, we can hope that India’s e-commerce ecosystem will become one where consumers can confidently shop, and e-commerce entities can grow within ethical standards.

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