Syllabus: GS3/ Economy
Context
- The government has issued draft guidelines titled ‘E-commerce – Principles and Guidelines for Self-Governance’ prepared by the Bureau of Indian Standards (BIS).
E-Commerce Market in India
- India’s e-commerce market is projected to reach $363.30 billion by 2030.
- E-commerce constitutes around 7% of the total retail market in India.
- By 2030, India is projected to host the second-largest online shopper base globally, with an estimated 500 million shoppers.
- The sector has benefited from increased internet penetration, rising affluence, and affordable data prices.
Key Provisions of the Draft Guidelines
- Pre-Transaction Verification: E-commerce platforms are required to conduct thorough Know Your Customer (KYC) checks for sellers, especially third-party sellers.
- It includes verifying the authenticity of sellers’ identity details, legal entity name, contact information, and business address.
- Detailed Product Listings: Sellers must provide comprehensive product information, including title, images, specifications, and shipping modes.
- It ensures that consumers can make informed decisions based on accurate product details.
- Transparent Contract Terms: The guidelines emphasize the importance of transparent contract terms, including clear disclosure of product descriptions, price breakdowns, return policies, and safety warnings.
- Secure Payments: E-commerce platforms must implement secure payment systems with encryption and two-factor authentication to protect consumer data.
- Diverse payment options, including credit/debit cards, mobile payments, e-wallets, and bank transfers, must be provided.
- Timely Refunds and Returns: Clear timelines for refunds, replacements, and exchanges must be established, with provisions for handling counterfeit products.
- Consumer Reviews and Ratings: All consumer reviews and ratings must comply with IS 19000:2022 standards, covering collection, moderation, and publication processes.
- Data Protection: E-commerce entities must adhere to data protection regulations, ensuring that personal data collected from consumers is used exclusively for transaction facilitation and other disclosed purposes.
- No Preferential Treatment: The guidelines prohibit preferential treatment of any sellers or service providers to maintain a level playing field for all stakeholders.
- It includes implementing policies to prevent the sale of counterfeit products and ensuring impartial operations.
E-Commerce Model in India –Business to Consumer (B2C): Platforms like Amazon, Flipkart, and Myntra operate on this model – Business to Business (B2B): It is particularly relevant for industries such as manufacturing, where companies procure raw materials, machinery, and other supplies from suppliers. 1. Platforms like Udaan and Alibaba cater to this segment, facilitating bulk transactions and supply chain solutions. 2. 100% FDI is allowed in B2B e-commerce. – Consumer to Consumer (C2C): Platforms like OLX and Quikr enable individuals to list and sell their items, providing a marketplace for peer-to-peer transactions. – Business to Administration (B2A) and Consumer to Administration (C2A): The Government e-Marketplace (GeM) is an example of a B2A platform, facilitating government procurement of goods and services. |
Other steps of government
- The Indian government has introduced several initiatives to support the growth of e-commerce, including the Digital India program and the Goods and Services Tax (GST) framework.
- Draft National E-Commerce Policy, 2019 Focusing on data localization, consumer protection, intellectual property rights, and competition issues.
- Open Network for Digital Commerce: It is the decentralised online platform that will help reduce the cost of doing business for retailers.
- Government e-Marketplace (GeM): It is an online platform for public procurement by government departments. It promotes transparency, efficiency, and inclusiveness in e-commerce for small and medium enterprises (SMEs).
Concluding remarks
- The draft guidelines emphasize self-regulation, consumer protection, and transparency while addressing growing challenges in the e-commerce sector.
- With India’s rapid e-commerce growth, these measures will ensure a fair, competitive, and consumer-friendly marketplace, fostering sustainable development in the digital economy.
Source: TH
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