: ECommerce marketplace entity shall not sell any goods owned or controlled by it #IndiaNEWS #Ecommerce In major changes to eCommerce rules, the Ministry of Consumer Affairs has specified that an eCommerce

eCommerce marketplace entity shall not sell any goods owned or controlled by it #IndiaNEWS #Ecommerce
In major changes to eCommerce rules, the Ministry of Consumer Affairs has specified that an eCommerce marketplace entity shall not sell any goods owned or controlled by it on such eCommerce marketplace platform. All the sellers on the platform shall only be third party sellers, and no eCommerce store can be run on the eCommerce marketplace platform.

These changes come in the Consumer Protection (eCommerce) Rules, 2020 and the government has sought comments on it.

The changes in rules to be notified will cut on complaints of discounts, and sales by related parties by foreign eCommerce majors.

An eCommerce marketplace entity means an eCommerce entity, which provides an information technology platform on a digital or electronic network to facilitate transactions between buyers and sellers.

In addition, the changes in rules now prescribe that no eCommerce entity shall discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act. No eCommerce entity shall make any segmented offers to particular consumers on an arbitrary basis. The classification of consumers shall be on a transparent and objective basis and offerings shall be uniform across a class of consumers.

An entity will not use information collected by marketplace eCommerce entities, for sale of goods, directly or indirectly, by any seller, whether related or not.

The eCommerce marketplace entity or its associated enterprises or its related parties cannot directly or indirectly license its brand or private label products to third parties to be sold on the platform.

If an eCommerce entity is operating an eCommerce marketplace platform as well as an eCommerce store platform, the two platforms cannot use the same or similar brand name or branding.

The entity will give total price in single figure of any good or service, along with the breakup showing all the compulsory and voluntary charges such as delivery charges, postage and handling charges, conveyance charges and the applicable tax, as applicable. This shall also be made available transparently in a tabular form when a consumer is comparing various products.

Every marketplace eCommerce entity shall publish on its website the charges payable by sellers for selling their goods on the platform and any other services provided by the eCommerce marketplace entity. All information, including its terms and conditions generally governing its relationship with sellers, shall be displayed on its platform.

Categorisation, if any, of sellers shall be on a transparent basis. All offers or discounts or relaxations in terms and conditions to various categories of sellers shall be uniform for all the sellers in a given category.