Govt asks e-commerce companies to appoint nodal officer for compliance with consumer protection rules

By: |
May 19, 2021 10:25 PM

This new sub-rule, which has been included in the Consumer Protection (E-Commerce) Rules, 2020, has come into effect from May 17, according to a notification issued by the consumer affairs ministry.

ecommerce, flikart, amazonEarlier this month, GeM CEO Prashant Kumar Singh had told Financial Express Online that the marketplace is already the third biggest public procurement portal globally in terms of GMV. (Representational image: Reuters)

The government has asked e-commerce companies to appoint a nodal officer to ensure compliance with the new rules on consumer protection. The rules are applicable to e-commerce entities registered in India, as well as those registered abroad but offering goods and services to Indian consumers.

This new sub-rule, which has been included in the Consumer Protection (E-Commerce) Rules, 2020, has come into effect from May 17, according to a notification issued by the consumer affairs ministry. These rules were made under the provisions of the Consumer Protection Act, 2019. “…it (e-commerce entity) shall appoint a nodal officer or an alternate senior designated functionary who is resident in India, to ensure compliance with the provisions of the Act or the rules made thereunder,” the notification said.

The rules apply to all e-commerce entities incorporated under the Companies Act, 1956 or under the Companies Act, 2013 or a foreign company covered under clause (42) of section 2 of the Companies Act, 2013 or an office, branch or agency outside India owned or controlled by a person resident in India as provided in the Foreign Exchange Management Act, 1999, it added.

The new rules for e-commerce entities were first notified in July 2020. Their violations attract penal action under the Consumer Protection Act, 2019.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.