New Delhi
Cases of fraud in online shopping often come to the fore. Many times customers order expensive items and are given something else in exchange. But this will not happen now. The central government has issued draft guidelines for e-commerce platforms to protect customers from fraud. These guidelines will be self-regulatory. The government has taken this step amidst the rapidly increasing trend of digital shopping in the country. The Bureau of Indian Standards (BIS) has prepared the guidelines under the supervision of the Food and Consumer Affairs Ministry. It says that the refund process in cash on delivery should be as per the customer’s choice. Suggestions have been sought from concerned parties on the draft till February 15.
The guidelines are based on three stages – pre-transaction, contract formation and post-transaction stage. According to this, platforms will be required to do KYC of business partners, especially third-party sellers. It will be necessary to provide detailed information of the product such as title, seller’s contact information, identification number, so that consumers can assess the usefulness of the product. For imported goods, it will be necessary to display the details of the importer, packer and seller prominently on the platforms.
According to the contract formation guidelines, e-commerce platforms will have to take consumer consent, review transactions, and have transparent policies for cancellation, return and refund. Platforms will have to make complete transaction records available to consumers. Payment options like credit/debit card, mobile payment, e-wallet and bank transfer will have to be made available. Along with this, it will be necessary to give complete information about the processing charge. Platforms must implement secure payment systems with encryption and two-factor authentication. For recurring payments, simple opt-out procedures must be in place with clear details of time, interval and amount. Cash-on delivery refund will be done as per the choice of the consumer.
The post-transaction guidelines stipulate clear timelines for refund, replacement and exchange of counterfeit products. Besides, it has also been asked to provide information about timely delivery. The objective of this government initiative is to ensure a safe and transparent experience for consumers on e-commerce platforms. The draft guidelines mention, ‘The growing influence of e-commerce has presented new challenges regarding consumer protection and trust. In this matter, the importance of clear and effective rules and norms for self-governance is very high.
