Proposed E-Commerce Norms Might Affect Consumer Interest, Increase Compliance Burden For Firms : IAMAI
- ByAyushi Ray | July 22, 2021
The proposed e-commerce norms might affect consumer interest, increase compliance burden for firms, says IAMAI. The draft ecommerce rules released by the government on June 21 proposes to ban fraudulent flash sales and mis-selling of goods and services on ecommerce platforms. Appointment of chief compliance officer/grievance redressal officer are among the key amendments proposed under the Consumer Protection (E-Commerce) Rules, 2020. In its submission on the draft rules, the Internet and Mobile Association of India (IAMAI) said the proposed amendments raise several concerns and ambiguities from an e-commerce business standpoint, which are also likely to have unintended negative consequences for consumers. “A uniform application of these Amendments/Rules across all ecommerce models would not be feasible, is far from ideal, would impact businesses as well as consumers, and will create a high level of uncertainty in an industry that is still in its growth stages and would benefit from light handed regulation,” it added.
The association noted that the amendments fail to provide a level-playing field between online and offline e-commerce/retail. Under the amendments, ecommerce platforms will face several restrictions and increased compliance burden. However, the same will not be applicable on the brick-and-mortar stores, it said. The industry body pointed out that implementation of the amendments in its current form will “significantly increase the compliance burden on MSMEs as well as for start-ups who are not even in the e-commerce business, but provide services to ecommerce”.IAMAI has also urged that the concept of “fall-back liability” be done away with as it dilutes the intermediary safe harbour under the provisions of the IT Act as well as the arm’s length requirements provided under the FDI policy.
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