In response to growing concerns about the responsibility of e-commerce platforms in India, the Indian consumer affairs ministry is working on tightening e-commerce rules to make online retail platforms more liable for fraud committed by sellers [2]. The proposed rules will introduce a "fallback liability," attaching more accountability to the role of platforms as intermediaries.
In response to growing concerns about the responsibility of e-commerce platforms in India, the Indian consumer affairs ministry is working on tightening e-commerce rules to make online retail platforms more liable for fraud committed by sellers [2]. The proposed rules will introduce a "fallback liability," attaching more accountability to the role of platforms as intermediaries.
E-commerce platforms like Amazon, Flipkart, and Snapdeal currently serve as intermediaries, connecting buyers and sellers in the Indian online marketplace. They are protected under Section 79 of the Indian Information Technology Act, 2000, which grants them immunity from liability for third-party information, data, or communication links made available or hosted by them [5]. This protection, known as "safe harbor" provisions, allows e-commerce platforms to avoid responsibility for fraudulent activities committed by sellers on their platforms.
However, the proposed regulatory changes will challenge this protection and hold Indian e-commerce platforms more accountable for seller fraud. By introducing "fallback liability," the Indian consumer affairs ministry aims to ensure that online retail platforms take greater responsibility for the transactions that take place on their platforms, ultimately benefiting Indian consumers and promoting trust in e-commerce [2].
The tightening of e-commerce rules comes at a time when online shopping continues to grow rapidly in India, with more consumers relying on digital platforms for their purchasing needs. As e-commerce expands, ensuring consumer protection and fostering trust in online retail platforms becomes crucial to sustaining the industry's growth. The proposed Indian regulations seek to strike a balance between promoting e-commerce growth and protecting consumers from fraudulent activities.
These regulatory changes are expected to impact e-commerce platforms operating in India, requiring them to adapt their operations to comply with the new rules. In the long run, however, increased accountability could lead to a more transparent and trustworthy e-commerce landscape in India, benefiting both consumers and legitimate sellers.
In summary, the Indian consumer affairs ministry's efforts to tighten e-commerce rules represent a significant shift in the way online retail platforms are regulated in the country. By holding e-commerce platforms more accountable for seller fraud through "fallback liability," the proposed Indian regulations aim to increase consumer protection and build trust in the rapidly growing e-commerce industry [2].