As Inc42 reports, The Consumer Protection Bill aims to provide for the protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto, be taken into consideration.
Once the law is enacted, it will make online retailers and marketplaces liable for fraudulent sales and defective items commercialized on their platform. All India Online Vendors Association (AIOVA) has already raised concerns over Amazon India’s inaction pertaining to the sale of fake products on its platform. The association has demanded a similar protection law for sellers and vendors too, reports Inc42.
As per the IT Act and DIPP guidelines, the ecommerce companies in India are so far recognised as online marketplaces and providers of technology platforms to act as facilitators between buyers and sellers.
However, after the Consumer Protection Act, 2018, ecommerce companies could require these platforms to register with the consumer affairs department and the companies would also have to disclose their business details and seller agreements, reports ET.
As per the report, the ecommerce companies would also require to disclose the intention and applications of consumer data that these companies store. Furthermore, the law also looks into how these companies manage customer consent, especially when sharing data with third-parties, including advertisers.
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