Introduction
The Bureau of Indian Standards has released draft standards titled “E-commerce – Principles and Guidelines for Self-Governance”1 dated January 2025 (herein after referred to as the “Guidelines“). These Guidelines are imperative for the self-governance of e-commerce entities, ensuring fairness and transparency for all stakeholders including consumers and businesses. The rapid growth of e-commerce, brings with it several challenges, particularly pertaining to consumer protection and safety of e-commerce transactions. Transparent self-governance rules are essential to safeguard consumers from fraudulent practices and promote ethical business operations.
The Guidelines outline key principles to streamline e-commerce operations which have been categorized into three phases: pre-transaction, contract formation, and post-transaction.
Pre-transaction Guidelines
In the pre-transaction phase, e-commerce entities must verify seller identities through robust know your customer procedures, collecting essential business details, and maintaining a checklist for seller onboarding. E-commerce platforms (“Platform(s)“) should provide comprehensive product and seller information, every product must be accompanied by detailed descriptions, high-resolution images, country of origin details, seller credentials, and pricing breakdowns. The final consumer price, including taxes, discounts, shipping fees, and any hidden costs, must be clearly displayed. Consumers should have the ability to filter search results by various criteria such as name, category, or origin. Product listings must undergo review before publication. Platforms must disclose their own contact and communication details. Platforms must also provide clear policies on cancellations, exchanges, and refunds, specifying any additional charges involved.
Contract Formation Principles
The contract formation phase requires Platforms to ask customers to provide explicit consent for all transactions, no Platform should pre-select checkboxes for consumer consent. Consumers should receive full transaction details before confirming purchases, with options to edit or cancel the transaction. Invoices must include essential order details, such as product specifications, pricing breakdowns, delivery timelines, and logistics provider information. Clear return and refund policies must be displayed, including applicable charges and timeframes. Transaction records should be maintained and accessible as required by law. Multiple payment methods must be available, with transparency regarding any associated charges. All payment options, including credit/debit cards, mobile wallets and cash-on-delivery, must be secure and comply with financial regulations. Payment services owned by Platforms must ensure full disclosure of affiliations and terms. Any modifications to recurring charges require prior consumer consent, and cash-on-delivery refunds must be processed in accordance with consumer preferences. Platforms must provide full disclosure on the duration, renewal terms, and cancellation policies of any subscription-based services.
Post Transaction Obligations
The post-transaction phase focuses on ensuring transparency and accountability in order fulfilment. The Guidelines require Platforms to comply with the Consumer Protection Act, 2019 and have a dedicated grievance redressal mechanism. Consumers should receive timely delivery updates through multiple communication channels, including SMS and email, along with access to tracking information. Defined timelines for returns and refunds should be established, with extended periods for counterfeit product returns and exchanges.
General Principles of the Guidelines
Beyond the phased approach, the Guidelines also establish certain general principles. Platforms must prohibit the sale of banned products by maintaining a ready list and employing technology to monitor listings. Data privacy laws must be adhered to, with explicit consumer consent required for use of data beyond transaction facilitation. Non-transactional commercial communications must be based on explicit customer opt-in. Fair business practices mandate that sellers and consumers be treated equitably, affiliated sellers should be restricted from selling on the same platform, and third-party service providers must be given access through open APIs. To combat counterfeit sales, e-commerce entities should implement robust monitoring and enforcement mechanisms, there should be strict policies to identify, remove, and prevent counterfeit goods, with prompt action against repeat offenders. Marketplaces must ensure a level-playing field for all sellers and prohibit preferential treatment to select vendors. Advertisements or sponsorships shall be clearly identifiable as such and should be distinguished from other content, such as editorial comments, terms and conditions, and independent product reviews, further consumers should not be coerced into purchasing from specific sellers. Product information should be accurate, and platforms must conduct periodic seller reviews to ensure authenticity. Customer reviews must comply with IS 19000:2022 standards for collection, moderation, and publication.
Evolution of E-Commerce Regulations
The Guidelines refine the 2019 Consumer Protection (E-Commerce) Rules by shifting from a regulatory approach to self-regulation. It introduces structured transactional phases, enhances consumer protection through stricter disclosures, ensures fair business practices by preventing platform-owned seller manipulation, aligns with data protection laws, and strengthens anti-counterfeiting measures.
Conclusion
The Guidelines introduce additional obligations beyond that included in existing regulations such as the Consumer Protection Act, 2019 and the Legal Metrology Act, 2009. By encouraging self-regulation, the Guidelines aims to build consumer trust, prevent unfair trade practices, foster a responsible and sustainable e-commerce ecosystem. If adopted, these Guidelines will increase transparency and consumer confidence. Businesses will need to ensure compliance with strict registration norms, honest advertising, and consumer-friendly policies. This initiative marks a significant step towards a fair and responsible digital marketplace, reinforcing India’s commitment to consumer rights and ethical e-commerce practices.
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