Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 22 June 2021

Confused ? Confounded ?

 


 

Context :

Govt toughens rules for e-commerce giants  /  HT  /  22 June 2021


Extract :

The draft rules, framed under the Consumer Protection Act 2020, the flagship consumer-rights law, will apply to “ all models of e-commerce, including marketplace and inventory models of e-commerce ”.

Ø  The new draft proposes an updated definition of

      #   what constitutes an e-commerce entity,

      #   cross-selling, which refers to sale of additional goods related to a

            purchase already made, and

      #   fall-back liability, which essentially increases the liability of e-commerce

           platforms.

Ø  The draft rules, which will be open to public comments until July 6, defines an e-commerce entity as

       #  any person who “owns, operates or manages digital or electronic facility

           or platform for electronic commerce” and

          

       #  any “related party”, as defined under the Companies Act, 2013,


      But “ does not include “,

       #  a seller offering his goods or services for sale on a marketplace e-

            commerce entity”.

This enhances the liability of e-commerce companies for goods and services delivered on their platforms.

Ø  The draft rules outlaws

       #   flash sales

       #   instant, unannounced sales that usually accompany discounts—that are

            manipulated to give advantage or preferential treatment to a particular

            seller or a group of sellers.

            

Ø  “Conventional flash sales are not banned. The proposed amendments aim to bring transparency.


Ø  Cross-selling, which involves additional offers for other goods once a particular item has been purchased, should have “adequate disclosures” for buyers.


Ø  The draft rules also seek to protect consumer data by prohibiting e-commerce firms from making “available any information pertaining to the consumer to any person other than the consumer without the express and affirmative consent of such consumer”.


===================================================

MY  OBSERVATIONS  :


While welcoming some clarification ( in respect of a DEFINITION of E Commerce ) which might make the job of the Courts somewhat easier while interpreting , I am afraid we have not heard the last word on this subject.

 

Over past 6 years, in my following 22 e-mails, I had posed some questions in respect of a DEFINITION of E Commerce, which remain unanswered in the just released Draft Rules ! :

 

2015 ( 4 )

Defining E – Commerce                                     [  14  July  2015  ]

If You cannot lick them ; Join them                  [  24  July  2015  ]

WHO WILL OBSOLETE WHOM ?                         [  20  Aug  2015  ]

E - Commerce is Easy Commerce !                   [  15  Nov  2015  ]

 

2016 ( 3 )

Lessons from History ?                                       [  07 Jan  2016 ]

One Day , Everything will Sell Online !               [  29  Mar  2016  ]

Missing the Woods for the Tree ?                       [ 12  Aug  2016  ]

 

2017 ( 3 )

Level-Playing Field is a Double Edged Sword ! [  8  Feb  2017  ]

A New Way to E-Way ?                                      [  15  July  2017  ]

3 Laws of E – Commerce                                    [  04  Dec  2017  ]

 

2018 ( 2 )

Ø  E Commerce Definition : a Space Ship ? ……[ 05 July 2018 ]

Ø  The E Commerce Elephant …………………………….[ 02 Aug 2018 ]

 

2019 ( 3 )

Weave a Wondrous World                                      20 Jan 2019  ]

L 11(Factorial Eleven)=11x10x9x8x7x6x5x4x3x2x1= 39.92  Million definitions / mutations of E Commerce ?

Innovation Nation ?                                               29 Jan 2019 ]

E Commerce Story is unfolding                               16  Feb 2019 ]

 

2020 ( 3 )

Ø  It is about time ……………………………………………….[ 18 July 2020 ]

Ø  Autobiography of an Appliance ………………………[ 22 June 2020 ]

Ø  Origin of Everything ?..................................[ 26 July 2020 ]

 

2021 ( 1 )

Ø  Thank You, Piyushbhai Goyalji,……………………….[ 22 Jan 2021 ]

===================================================

RELATED  READINGS :

 

Govt clarification on flash sales compounds confusion among e-tailers  /  Eco Times / 23 June

Extract :

Ø  The Centre’s clarification on Monday, allowing e-commerce portals to conduct conventional sale events while disallowing “only specific flash sales or back-to-back sales”, compounded confusion among e-tailers, brands and sellers, according to multiple people who spoke to ET on the developments.

Amendments to e-Commerce rules to bring in more accountability : Govt  /  Business Line / 23 June

Extract :

Ø  Ankur Pahwa, e-commerce sector National Leader, EY, India said :

(  ankur.pahwa@in.ey.com  /  ankurpahwa@hotmail.com )

“ While regulations are certainly needed to govern the e-commerce channel, they need to be devised comprehensively and holistically, be consistent in their application to various retail channels and finally be governed by a single law vs various regulations and notifications “

 

Ø  Nakul Batra, Associate Partner at DSK Legal, said :

( nakul.batra@dsklegal.com )

“ Greater liability of the e-commerce entities have been proposed by referring provisions of Competition Act, 2002, introducing concept of related party and associated enterprises, fall-back liability etc. which will compel the e-commerce entities to re-evaluate their business model “


Ø  Supratim Chakraborty, Partner at Khaitan & Co, added :

             (  supratim.chakraborty@khaitanco.com )

“ The amendment to the e-commerce rules have proposed to empower consumers with the ability to provide their express and affirmative consent with regard to sharing of their data being collected by the e-commerce platform.

Such consent cannot be obtained through mechanisms such as pre-ticked boxes.

While these may pose operational challenges to the e-commerce platforms, the government is willing to make that trade-off, in order to ensure that e-commerce platforms can be held accountable to its multiplying consumer base in India “

(  My Take :

Dear Shri Ravishankar Prasadji,

I get a feeling that in an indirect way, the Govt is telling the E-Commerce companies :


     For sharing ( euphemism for “ Selling “ ? ) a use’s data collected by you,

     you will compensate the  concerned user.

        

     If consumer grants you permission to collect his DATA ( using which, you

     make a ton of money ),  then you shall share with him the ( advt / sales )

     revenue , as described in great detail at :

        

            Digital Dividend from Demographic Data [ 4 D ]

           [ 14 Feb 2019 ]

 

            SARAL Single Authentic  Registration for Anywhere  Login )

           [ 10 Feb 2019 ]

 

 

 Dear Shri Prasadji,

 

        It is high time,

 

Ø  We stop beating around the bush and do some plain-speaking

Ø  We tell E-Comm companies that Data belongs to the User ( ownership ) and he has right to SELL it

Ø  You ( the E-Commerce Companies / Foreign or Domestic ) must “ BUY “ that data from users

Ø  You can operate in India and sell to Indians, only on such a CONTRACTUAL OBLIGATION

 

With regards,

 

Hemen Parekh / hcp@RecruitGuru.com  /  23 June 2021

   ==================================================

Why E-commerce Is Upset Over New Draft Rules: A quick guide to the latest chapter in the long-running regulatory drama    /  TOI  /  23 June

Extract :

Ø  First, new draft rules were not issued by commerce and industry ministry. Consumer affairs ministry issuing the draft…That is, make draft rules appear to not be a product of online-offline battle.

Ø  Second, unlike the last set of rules issued by commerce ministry this draft doesn’t distinguish between foreign and domestic e-commerce. So, new rules, if adopted, will apply to Amazon and Flipkart as well as to, say, Reliance’s and Tata’s e-commerce ventures

What are the biggest confusions?

Ø  First, flash sales. Late on Monday GoI issued a clarification that flash sales were not banned, as stated in the notification…E-commerce players are unclear what a ‘conventional’ flash sale would entail.

Ø  Second, draft rules said no related parties and associated enterprises should be listed as sellers on marketplaces…Do new rules mean any shareholding by e-commerce companies in any seller is now banned? Or are there other definitions of being related parties?

Ø  Basically, that e-commerce companies will be held responsible as if they were sellers themselves. To take an example from brick and mortar space, this is almost akin to holding a market responsible for any fault of any shop in that market

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