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
# 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
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 :
“
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
If consumer grants you permission to collect his DATA ( using which, you
make a ton of money ),
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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