Consumer Protection Rules 2020: Government notifies new rules for e-commerce entities

With August about to come, a new notification by the government has stirred the e-commerce industry. The Indian government has updated Consumer Protection Rules 2020 last week. The step aims to bring more transparency and accountability in the online retail business.

Source

The new rules include the mandatory display of ‘country of origin’ on the products and state that any non-compliance will attract penal action. But that is not the only new change.

Below are some of the important points people must know about the Consumer Protection Rules 2020.

Consumer Protection Rules 2020: Points To Know

• The e-commerce owners have to display the total price of goods and services along with a proper display of other charges as well.
• There should be ‘Expiry Date’ and ‘Country of Origin’ mentioned on both services and products.
• In addition, e-commerce players will have to display other details like return, exchange, refund, guarantee, warranty, shipment, and delivery among other essential details to help customers make an informed decision.
• No cancellation charges will be imposed on the customer unless the sellers are also ready to pay the cancellation charges if the same happens from their side.
• Under the new rules, e-commerce players cannot manipulate the prices to make unreasonable profits. They are also barred from making any discrimination between the consumers.
• The e-commerce entities will also be responsible for the advertisements of the products and services and must ensure they are not false and offer actual characteristics of the products and services.

As per the reports, the rules were finalised after taking inputs from the Department for Promotion of Industry and Internal Trade, under the aegis of the commerce ministry. It will come in effect from 27^th July 2020.

READ MORE: Know Why Gold Prices Are Rising In India Even During The Pandemic

What Will Happen to Rule-Breakers?

All these rules will be applicable to all electronic retailers who are registered both in India and abroad offering products and services to Indian consumers.

Source

If anyone violates these rules, they will be attracting penal action under the Consumer Protection Act, 2019. The Act was passed to ensure and regulate issues related to consumer rights and keep a tab on misleading advertising and unfair trade practices.

For detailed information on the new Consumer Protection Rules 2020, click here!

For more such articles and updates on the business world, keep reading NewzOnTips.