Government’s Open Network for Digital Commerce Operational in Over 500 Cities and Towns in India

• ByStartupStory     |    December 21, 2023

The government-promoted Open Network for Digital Commerce (ONDC) is now operational in more than 500 cities and towns across India, according to a statement made in Parliament. ONDC, an initiative of the Commerce and Industry Ministry, aims to provide a facilitative model for small retailers to leverage digital commerce opportunities.

Minister of State for Commerce and Industry Som Parkash stated, “ONDC is currently operational in more than 500 cities and towns across India,” emphasizing the widespread reach of the initiative.

ONDC is not a standalone application, platform, intermediary, or software but rather a set of specifications designed to promote open, unbundled, and interoperable networks. It operates under the existing laws and regulations of India pertaining to e-commerce, ensuring compliance with the country’s legal framework.

In addition to the ONDC initiative, the Department of Consumer Affairs has taken steps to protect consumers from unfair trade practices in e-commerce. The Consumer Protection (E-commerce) Rules, 2020, have been notified under the provisions of the Consumer Protection Act, 2019. These rules outline the responsibilities of e-commerce entities and specify the liabilities of marketplace and inventory e-commerce entities, including provisions for customer grievance redressal.

Furthermore, Minister Parkash highlighted the issue of dark patterns in e-commerce, which involve using design and choice architecture to deceive, coerce, or influence consumers into making choices that are not in their best interest. Practices such as drip pricing, disguised advertisement, bait and switch, and false urgency are examples of dark patterns. He emphasized that such practices are considered unfair trade practices under the Consumer Protection Act, 2019.

The operational expansion of ONDC demonstrates the government’s commitment to fostering digital commerce opportunities for small retailers while ensuring consumer protection in the e-commerce space. With its presence in hundreds of cities and towns, ONDC is poised to play a significant role in India’s digital commerce ecosystem.

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