India's E-commerce Overhaul: New Guidelines to Protect Consumers

The Indian government introduces draft guidelines for e-commerce platforms to enhance consumer protection. The new guidelines focus on self-governance, mandating thorough KYC checks, detailed product listings, and diverse payment options. These measures aim to tackle fraud and build consumer trust in the growing digital marketplace.

The government of India has unveiled new draft guidelines for e-commerce platforms, designed to safeguard consumers from fraudulent activities in the rapidly expanding online shopping sector. The guidelines, drawn up by the Bureau of Indian Standards under the Ministry of Food and Consumer Affairs, are now open for stakeholder feedback until February 15.

Amid the boom of e-commerce, challenges surrounding consumer protection and trust have come to the forefront. The 'E-commerce-Principles and Guidelines for Self Governance' framework seeks to address these issues through a three-phase approach: pre-transaction, contract formation, and post-transaction. Key requirements include conducting comprehensive KYC checks on third-party sellers and displaying comprehensive product information.

The guidelines demand a wide array of payment options, transparent policies for transaction cancellations, and clear timelines for refunds and exchanges. Importantly, it bans the sale of prohibited items and calls for neutral operations, ensuring a level playing field for all stakeholders. These measures aim to protect consumer data and maintain trust within India's burgeoning e-commerce industry.

(With inputs from agencies.)