Recently, the explanations required in the framework of the web portal, the accuracy of the declaration, the applicability of intermediate regulations under the Information Technology Act, the responsibility of e-commerce companies in the market to comply with them have been discussed and different views have been put forward by various experts on this subject. Under Rule 10 of the amended rules, e-commerce businesses are required to mention certain declarations (similar to packaged goods) on the digital or electronic platform, which is mainly used for e-commerce platforms. However, the amendments do not specify how these statements are to be made. All products sold on a digital network are packaged without the buyer being present at the time of packaging. Similarly, products sold by e-commerce companies would fall into the category of prepackaged products and would fall under the law and rules. Market Model: A pure ecommerce marketplace follows a zero inventory model. Amazon is an example of e-commerce players following the market pattern. The company acts as a meeting place for buyers and sellers without storing goods. But they provide shipping and payment assistance directly or in collaboration with certain logistics players and financial partners. The most significant change related to this section is the new sub-rule of Rule 6, ASCM, which requires all e-commerce businesses to report on their web portals. If these rules are not respected, measures may be taken against companies under Article 36(1), AMA, which provides for the penalty for the sale of non-standard packages. The Legal Metrology Act, 2009 was enacted to establish and enforce standards for weights and measures to regulate trade and commerce with respect to: Before moving forward with the new rules of electronic commerce, certain terms must be understood. In accordance with the Legal Metrology (Packaged Products) Rules, 2011, In case of assistance, please contact the Legal Metrology Consultants for expert advice and obtain the Legal Metrology E-Commerce Certificate.
The pandemic has hit countries around the world and lockdown measures have been imposed to contain the spread of the virus. The lockdown has triggered an increase in online shopping. As a result, laws for e-commerce and consumer protection and the interpretation of rules have become of great importance to the public. Snapdeal argued that it has a system in place to inform all sellers of legal obligations and has therefore exercised due diligence under section 79 of the Information Technology Act and the 2011 Intermediary Guidelines Rules. Agreements with vendors were accompanied by a list of prohibited products that categorically contained drugs and prescription drugs. Article 10 requires, after amendment, that e-commerce enterprises post certain declarations, for example in packaged goods, on the digital or electronic network. Indeed, the buyer is not physically present during the packaging. Prepackaged goods therefore also include products sold by e-commerce portals. One. The function of the e-commerce company is limited to providing access to a communication system through which the information provided by the manufacturer or seller or distributor or importer is transmitted or temporarily stored or hosted; The responsibility for the accuracy of the statements made on the e-commerce portals lies with the manufacturer/seller/reseller/importer and not with the e-commerce unit, provided that: In recent years, the pandemic has affected the lives of all people in the world. This makes people unable to shop for themselves or to make a living, which ultimately increases the percentage of online purchases directly or indirectly. After that, laws intended for e-commerce to protect the rights and interests of the consumer began to play an important role for e-commerce companies and also for consumers.
Electronic commerce company means a company incorporated under the Companies Act 1956 or the Companies Act 2013, or a foreign company under clause (42) of section 2 of the Companies Act 2013, or an office, branch or agency in India under section 2 (ii) of clause (v) of the Companies Management Act foreign exchange; 1999 (42 of 1999) owned or controlled by a person residing outside India engaged in electronic commerce. For breaches of a declaration by e-commerce companies, 38 notifications were issued during the period from 16 October 2020 to 31 December 2020, 232 notifications during the period from 1 January 2021 to 31 December 2021 and 178 notifications during the period from 1 January 2022 to 11 July 2022 by the Legal Metrology Department of the Department of Consumer Affairs. It is the prior responsibility of the e-commerce company or e-commerce portal to ensure compliance with the legal provisions on consumer relations. During the inspection initiated by officials and authorities under the AML, e-commerce enterprises should note the following: On June 23, 2017, the central government, in the exercise of its powers under the Legal Metrology Act of 2009 (Act) and the Legal Metrology (Packaged Goods) Regulations of 2011, introduced significant changes to the regulation on legal metrology (packaged goods), in particular with regard to e-commerce companies and the amending rules on legal metrology (packaged goods), the year 2017 published on 23 June 2017 entered into force on 1 January 2018. Some of the most important changes regarding e-commerce businesses introduced by the amending rules are as follows: thus, it limits the responsibilities of e-commerce, which simply acts as an intermediary for the explanation of the information provided by the seller/distributor/manufacturer/importer. Inventory-based model: This is when the company sources products directly from brands and sellers and keeps their inventory. There are not multiple sellers selling a product, unlike markets where buyers can choose from multiple merchants. The seller is the e-commerce company and the invoice is issued to the customer on behalf of the company. One such example is Jabong. Any manufacturer trading through an e-commerce portal must meet all legal requirements under the Legal Measure Act, and if at any time they encounter a problem or become confused, they must immediately contact the legal measurement consultant for e-commerce websites. [5] N.U.
Subaya & Janini Somiah, E-Commerce And Legal Metrology (2017), www.mondaq.com/india/contracts-and-commercial-law/644002/e-commerce-and-legal-metrology (last visited May 25, 2021). Union Minister Ashwini Kumar Choubey said in a written response to a question to Lok Sabha on Wednesday that the 2011 rules on legal metrology (packaged products) under the Legal Metrology Act 2009 require an e-commerce company to ensure that the name and address of the manufacturer, of the packer or importer, maximum selling price (MRP), country of origin, general or generic name of the goods, net quantity, month and year of manufacture, customer service details, etc. are displayed on the digital and electronic network used for e-commerce transactions. The e-commerce business must comply with the duty of care in fulfilling its duty as an intermediary under the Information Technology Act. This means that the e-commerce company must publish the rules and regulations, privacy policy and terms of use for accessing or using the intermediary`s computer resources. These rules and regulations must list the categories of information that, if published online, could be considered illegal, such as information that infringes patents, trademarks, copyrights or other proprietary rights, is blasphemous, obscene, pornographic, pedophile, defamatory, invasive of someone else`s privacy, hateful or racist, etc. And an amount of about Rs 77,90,500 in the form of compound interest charges was realized by e-commerce companies. An electronic commerce enterprise to which the Law on Legal Metrology and the rules enacted under this Act apply may be subject to investigations and inspections by the competent authorities to ensure compliance with the provisions of the Act and the regulations contained therein.