Mentoassociates.com – Legal Articles

1. Introduction

These rules apply to all goods and services bought or sold over any digital or electronic network. These even apply to an e-commerce entity, not established in India, but systematically offers goods or services to consumers in India.

According to these rules, an e-commerce entity,  means any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce, but does not include a seller using the said platform.

An inventory e-commerce entity is an e-commerce entity which owns the inventory of goods and services and sells such goods or services directly to the consumers.

A market place e-commerce entity is an e-commerce entity which provides an information technology platform on a digital or electronic network to facilitate transactions between buyers and sellers.

2. Duties of E-Commerce Entities:

1. An E-commerce entity shall be a company incorporated under the Companies Act 1956 or the Companies Act 2013 or a foreign company covered under clause (42) of section 2 of the Companies Act, 2013 or an office, branch or agency outside India, owned or controlled by a person resident in India.

• E-commerce entities shall appoint a nodal person of  contact who is resident in India, to ensure compliance with provisions of the Consumer protection Act, 2019 or the rules there under.

• Every e-commerce entities shall provide its legal name, principal geographic address of his headquarters and all branches, names and details of its website, email address and mobile numbers of customer care and grievance officer on its platform.

• Every e-commerce entity shall establish an adequate grievance redressal mechanism and shall appoint grievance officer for consumer grievance redressal and shall display his name, contact details, designation etc.

• Grievance officer shall acknowledge the receipt of any complaint within forty-eight hours and redresses the complaint within one month from the date of receipt of the complaint.

• E-commerce entity cannot impose cancellation charges on consumers, cancelling after confirming purchase, unless they incur similar charges if they cancel the purchase.

3. Liabilities of marketplace e-commerce entities

1. To require sellers through an undertaking to ensure that descriptions, images etc pertaining to goods or services on their platform is accurate.

• To provide the details about the sellers offering goods and services including the name of their business, geographic address, customer care number, any rating or feedbacks etc and they shall provide such information to consumer on request.

• They shall provide ticket number for each complaint lodged, through which the consumer can track the status of the complaint.

• They shall provide all information relating to return, refund, exchange, warranty, guarantee, delivery, shipment, modes of payment, and grievance redressal mechanism.

•  They shall also provide information on payment method, security of such payment methods, any fees or charges payable by users, the procedure to cancel regular payments and the contact information of payment service provider.

4. Duties of sellers on marketplace e-commerce entity

1. Sellers cannot refuse to take back goods or withdraw or discontinue services purchased or refuse to refund consideration, if such goods or services are found to be defective, deficient or spurious, late delivered etc.

• They shall have a written contract with the respective e-commerce entity in order to undertake or solicit such sale.

• They shall appoint grievance officer for consumer grievance redressal, who shall acknowledge the receipt of any consumer complaint within forty-eight hours and redresses the same within one month.

• They shall ensure that the advertisements for marketing of goods or services are consistent with the actual characteristics, access and usage conditions of such goods or services.

• They shall provide the e-commerce entity their legal name, principal geographic address of their headquarters and all branches, the name and details of their website, their e-mail address, customer care contact details, GSTIN, PAN etc.

• The seller shall further provide the following information to the e-commerce entity:
• Price of goods and services with the breakup price, together with delivery charges, handling charges, conveyance charges, applicable tax etc.
• Expiry date of goods being offered for sale.
• Details of country of origin of goods.
• Name and contact details of grievance officer
• Name and details of importer and guarantees of the imported products.
• Information related to terms of exchange, returns, refund, delivery, shipment, guarantees, warranties etc.

 5.  Duties and liabilities of inventory e-commerce entities:

1.  They shall provide accurate information regarding return, refund, exchange, warranty, guarantee, delivery, shipment, mode of payments and grievance redressal mechanism in a clear and accessible manner.

• They shall also provide information regarding payment methods, procedure to cancel payments, fees or charges payable by users, charge back options etc.

• They shall provide a ticket number for each complaint lodged through which the consumer can track the status of complaint.

• They shall provide total price in single figure of any  goods and services along with the  breakup price for the goods and services.

• They shall ensure that advertisements of goods and services are consistent with actual characteristics, access and usage conditions of such goods or services.

• They shall not refuse to take back goods or discontinue services or refuse to refund consideration, if such goods or services are defective, deficient etc.,