India Will Issue New Consumer Protection Law
- Mar 23, 2018 -

According to reports, Ram Vilas Paswan, India's minister of consumer affairs, food and public distribution, said that it is ready to promote the entry into force of the new Consumer Protection Act (2018), and the e-commerce market will face more legal constraints. And bear more responsibility. How will this bill affect e-commerce companies? The Amazon India Station Association (AIOVA) once expressed their concern about the lack of work done by Amazon India Station on sellers selling on their platforms. In addition, the association asked the government to enact relevant laws to protect sellers and suppliers. In addition, China's leading e-commerce platforms such as Jingdong, Jumei Youpin, Jingdong, and LaTeX.com have all been found to sell counterfeit products in India. Alibaba has also been accused of conducting data forgeries to demonstrate its leading position. The bill requires e-commerce retailers and platforms to be responsible for the sale of defective products and counterfeit products on their platforms. According to India's "Information Technology Act" and India's Directorate of Industrial Policy and Promotion (DIPP) guidelines, currently e-commerce companies in India are seen as providers of e-commerce platforms and technology platforms and are the coordinators between buyers and sellers. However, after the enactment of the new Consumer Protection Law in 2018, e-commerce companies need to register with the Department of Consumer Affairs, and must disclose their business details and seller agreements. E-commerce companies also need to inform relevant departments of the intent and purpose of their stored consumer data. The bill will also discuss in depth whether e-commerce companies need to obtain consent from the parties when they share consumer-related information with advertisers or others. So far, e-commerce companies have used a lot of consumer data in the application of machine voice and artificial intelligence. In order to obtain some of the functions that artificial intelligence drives, e-commerce companies often send consumer data to artificial intelligence companies. After the introduction of the new bill, e-commerce companies may no longer be able to share such data. E-commerce company's concerns against the new bill, many e-commerce companies wrote to the authorities, saying that this will lead to the business can not run smoothly, causing unnecessary problems and troubles, and may make e-commerce companies in order to clarify and solve the problem caused unnecessary Waste of resources. In fact, the new Consumer Protection Law is not the only obstacle for e-commerce companies and startups. In the past year, changes in Indian policies (such as the GST tax reform, source taxation system, etc.) have exerted different degrees of influence on the overall e-commerce market. It is understood that representatives from the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian Federation of Industry (CII), the Amazon India Station and other e-commerce companies have met with the secretary of the Indian Ministry of Consumer Affairs, Avinash K Srivastava, and expressed that the new bill will The operation of the Indian e-commerce market business has caused over-control concerns.


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