India's ‘E-commerce Policy’ to be released soon

The much-anticipated e-commerce policy is set to be released by the Union Commerce and Industry Ministry within the next two weeks or after the current parliament session.

Policy to promote ONDC

This policy is expected to incorporate provisions for the Open Network for Digital Commerce (ONDC), a government-supported initiative aimed at democratizing e-commerce in India.

One of the primary objectives of the policy is to strengthen the grievance redressal system for consumers who face issues with e-commerce companies.

This move aligns with the government's recent efforts to crack down on unfair trade practices prevalent in the e-commerce sector.

Decoding

Furthermore, the policy is designed to distinguish between the inventory-led and marketplace models of e-commerce, providing consumers with clear information about the different types of e-commerce platforms, enabling them to make well-informed choices.

This policy marks a significant advancement for the Indian e-commerce sector as it seeks to create a more level playing field for all market players and safeguards consumers against unfair trade practices.

Strengthen ‘Grievance Redressal Mechanism’

In addition to the above details, the policy will be in line with the Amendment to Consumer Protection (Ecommerce) Rules, 2020, which aims to address complaints related to "unfair trade" practices. Furthermore, the policy will prioritize inclusive growth by encouraging Small and Medium Enterprises (SMEs) to adopt digital technology and enhance exports through e-commerce.

Opposition

The Confederation of All India Traders (CAIT), a trade body representing small retailers, has urged the government to ensure that the policy treats all stakeholders fairly and avoids favoritism towards large e-commerce companies.

Moreover, the policy is expected to include guidelines regarding fallback liability for e-commerce companies, offering greater clarity on grievance redressals.