CONSUMER PROTECTION (E COMMERCE) RULES, 2020

SCOPE It includes the purchase and sale of goods on the electronic as well as digital form. Digital products as well as all types of e-commerce businesses will come under the domain of these rules.
These rules recognize and regulate not only those businesses which are incorporated in India but also those companies which engage on business practices in India either physically or electronically. Thus, foreign firms will not be able to escape liability for any unfair trade practice undertaken by them merely because they are not established within the territory of India.
Thus, these rules included business-to-business (B2B) model, Business-to-consumer (B2C) and Business-to-business-to-consumer (B2B2C) model. CONSUMER PROTECTION (E COMMERCE) RULES, 2020<br>

SALIENT FEATURES These rules make it mandatory for the e-commerce entities to display information about the payment mechanism, guarantee and warranty, refund, Shipping and delivery processes, etc. Furthermore, they are also required to display information about the country of origin. This provision is also mentioned in the Legal Methodology Act. 
The business entities are also required to appoint a grievance officer and to redress the consumer disputes in a timely and effective manner. The name and contact details of the grievance officer have to be made public by the e-commerce entity. Thus, the consumer will now have the option to lodge their grievances with an internal mechanism operating within the e-commerce entity. Furthermore, the rigid timeline of 1 month for the redressal of the consumer dispute will ensure that the consumers are redressed in a timely manner.<br>

Furthermore, the sellers of products on e-commerce entities are also requires to appoint a grievance redressal officer. The e-commerce platforms are also required to appoint a nodal officer who will be responsible for ensuring compliance with the Consumer Protection rules.
Section 4(11) of the new rules prohibit manipulation of prices as well as any sort of discrimination or classification of customers in an arbitrary manner. This will prevent the e-commerce firms from gaining unreasonable profit through manipulation. The aim of this provision is to create a playing level field for all the sellers.
The e-commerce entities are also restricted from imposing cancellation charges for customer as long as they do not bear similar charges themselves in the event of the e-commerce entities arbitrary and unilaterally cancelling an order.<br>

MARKET PLACE MODEL Section 3(g) of the Rules define marketplace entity as an e-commerce business that facilitates the transactions between the buyers and sellers of goods and services by providing them an IT platform either at the electronic or digital mode.
The new Rules have taken cognizance of the fact that many sellers of the market place entity pose as customers and put up reviews about their own products and services. They thus try to misguide the consumers by posting false information about their own products and services. Section 6(2) of the new Rules prohibit such activities.<br>

INVENTORY MODEL Section 3(g) of the Rules define an inventory entity as an e-commerce business that owns the stock of goods or services and engages in the direct sale of such goods and services to the customers. Such entities include both single as well as multi-channel solo brand retailers.
Inventory entities will bear liability for such goods and services whose authenticity they vouch for.<br>

CONCLUSION The new rules are progressive and reformative in approach. They empower the consumers and provide them with adequate remedies to have their disputes redressed.
However, there have been several instances where the domestic businesses have complained about the predatory pricing of e-commerce platforms. A parliamentary panel has also recommended the government to find an effective solution to this problem. The government should list predatory pricing as an anti-competitive policy which amounts to unfair trade practice.
Section 4(9) of the rules make it mandatory for the e-commerce entities to obtain the customer’s consent through an “affirmative” and “explicit” action for the purchase of goods and services through its platform. However, what constitutes explicit as well as affirmative action is not defined in the rules. Such actions must be clearly defines so as to avoid any kind of confusion.<br>

SOURCES https://epaper.thehindu.com/Home/ShareArticle?OrgId=GL98DM2IL.1&imageview=0
https://consumeraffairs.nic.in/sites/default/files/E%20commerce%20rules.pdf
https://indiacorplaw.in/2020/08/consumer-protection-e-commerce-rules-2020-an-analysis.html#:~:text=The%20rules%20make%20it%20mandatory,charge%20levied%20by%20these%20entities.&text=Further%2C%20the%20rules%20have%20stipulated,entities%20related%20to%20e%2Dcommerce.<br>