Draft ecommerce policy: the 2-minute version

A leaked draft of India’s e-commerce policy has divided industry watchers and stakeholders. While some argue that it sufficiently decouples consumer protection and business data laws from the policy, others say it could increase compliance requirements and create uncertainty in some segments.

Here are the main points in the draft policy:


Ground rules

• FDI policy to supersede e-commerce policy in case of inconsistencies.
• Marketplaces to be impartial to sellers, not use data to gain an advantage over them.
• Restrictions on marketplaces to be extended to their associates and related parties.

Promoting e-commerce

• Government to work on bringing more offline sellers online.
• Express-delivery service from India Post and integration of government interfaces for ease of e-commerce exports.
• Open up Government e-Marketplace (GeM) to consumers.

Protecting consumers

• E-commerce operators to ensure their algorithms are not biased.
• Create safeguards to ensure sellers’ products are genuine.
• Platforms to be co-owners of liability for counterfeits in case of end-to-end fulfilment.

Ensuring fairness

• Algorithms must not prioritise any vendors; there should be transparent policies on discounts.
• Govt to ensure availability of more service providers to counter digital monopolies.

Government oversight

• All e-commerce entities to register with the government of India.
• Measurement of e-commerce activities will be undertaken by concerned agencies.
• The Standing Group of Secretaries on e-commerce (SGoS) will recommend e-commerce policy changes.