Draft ecommerce policy allows for limited inventory-based B2C model, separate DoE wing for FDI implementation

The government has released a draft of a national policy on ecommerce, which allows for limited inventory-based B2C model for domestically produced goods, and has also called for creating a separate wing in the Directorate of Enforcement to handle grievances related to implementation of Press Note 3. It also makes it mandatory for ecommerce companies to store all user generated data exclusively within the country.

The draft policy also calls for the restriction imposed on e-commerce marketplace, to not directly or indirectly influence the price of sale of goods and service, to be extended to group companies of the e-commerce marketplace. Several seller associations and stakeholders have frequently raised complaints about the preferential treatment given to group companies by some ecommerce players.

Some ecommerce companies have also been accused of circumventing of the Press Note 3 guidelines.


The policy also entails several rules around the use of data, especially in the light of the draft data protection bill released last week.

It mandates e-commerce entities to make a full disclosure to the consumer regarding the purpose and use of data collection upfront in a "simplified and an easily understandable form on their websites. "

The policy also calls for the creation of a eCentral Consumer Protection Authority (CCPA) to act as the nodal agency for intra-government coordination, make mandatory registration of all e-commerce operators, domestic or foreign, and to provide a platform for e-commerce operators for complaints regarding fraudulent activities.