The backbone of e-commerce regulations is established by the Information Technology Act, 2000. It provides legal validity to electronic transactions which in turn gives recognition to the services provided by e-commerce platforms.
The Department of Industry and Internal Trade (DPIIT) has formulated a draft National E-Commerce Policy (NECP) in 2019. In its current iteration, the draft policy seeks to address six broad issues in the e-commerce ecosystem viz., data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy, and export promotion through e-commerce. This policy has yet to come to fruition.
The Consumer Protection (e-commerce) Rules were also proposed to be amended through the highly contentious Draft Consumer Protection (e-commerce) Rules 2021 which sought to restrict flash sales, introduce ‘fall-back liability’, and restrict preferential treatment to related parties. The current status of this amendment remains unclear at this date.
Department for Promotion of Industry and Internal Trade (DPIIT)
Ministry of Commerce and Industry
Proposal for Equalization Levy on Specified Transactions (Report of the Committeeon Taxation of E-Commerce), 2016
Foreign direct investment (FDI) Policy, 2016
Guidelines for FDI on E-commerce – DPIIT Press Note 3, 2016
Foreign direct investment (FDI) Policy. 2017
Review of the Policy on FDI in E-commerce – DPIIT Press Note 2, 2018
Foreign direct investment (FDI) Policy, 2020
Market Study on E-commerce in India, Competition Commission of India, 2020
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