Compliances for Website/E-Commerce Website

By Vidhi Oberoi And Ritvik Kashyap

Introduction

E-Commerce compliance under the Legal Metrology (Packaged Commodities) Rules, 2011^[1](hereinafter referred to as “LM Rules”) is an important aspect of ensuring transparency, fairness and consumer protection in the rapidly evolving digital marketplace. For e-commerce businesses, compliance with these rules require adhering to stringent labelling requirements, ensuring accurate and visible display of products information. Failure to comply with these rules can result in penalty and damage to the brand’s reputation. Therefore, it is important for the e-commerce entities to comply with these rules to build consumer trust and to avoid any legal consequences.

What is E-Commerce?

The term e-commerce is defined under Rule 2(bd) of the LM Rules^[2]. As per this rule, it means buying and selling of goods and services including digital products over digital and electronic network.

What is E-Commerce Entity?

The term e-commerce entity is defined under Rule 2(be) of the LM Rules^[3]. As per this rule, it means a company which is incorporated under the Companies Act, 1956 or the Companies Act, 2013 or a foreign company covered under clause (42) of section 2 of the Companies Act, 2013, or an office, branch or agency in India covered under sub-clause (ii) of clause (v) of section 2 of the foreign Exchange Management Act, 1999 (42 of 1999) owned or controlled by a person resident outside India and conducting e-commerce business.

What is Marketplace based model of E-Commerce?

It is defined under Rule 2(bf) of the LM Rules^[4]. It means providing of an information technology platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

Compliances for E-Commerce

According to Rule 6(10) of the LM Rules^[5], every e-commerce entity shall ensure that the following declaration which are required to be made under Rule 6(1) of the LM Rules is displayed on digital and electronic network which is used for e-commerce transactions:

1. Name and address of manufacturer / packer / importer
                           For eg. ABC India Ltd, Plot No. 4, Sector 35, Jamnagar, New Delhi – 110014
2. Country of origin
                           For eg. Manufactured in India.
3. Generic name
4. Net Quantity

                        For eg. Net Quantity: 200g

5. Date of Manufacture
                           For eg. Mfg. Date: 10^th January, 2024
6. Best Before / Use by date
                           For eg. “BEST BEFORE 12 MONTHS FROM MANUFACTURING”
7. MRP inclusive of all taxes
                           For eg. MRP Rs. 50 (INCL. OF ALL TAXES)
8. Dimensions of the commodity

                        For eg. Length: 12 inches

                                    Width: 8 inches

                                    Height: 4 inches

9. Consumer care details
   For eg. For feedback or queries, write to:

                           THE CONSUMER CARE MANAGER, ABC India Ltd, Plot No. 4, Sector 35,Jamnagar, New Delhi – 110014,

                           OR Call us at 18002345784

                           OR Email us at consumercare@abc.com

10. Unit Sale Price

                        For eg. UNIT SALE PRICE: Rs. 60; Rs. 0.30/g

NOTE: The said rule describes that in a market place model of e-commerce, the responsibility of correctness of the declarations shall lie with the manufacturer/seller/dealer/importer, only if:

(i) The function of the e-commerce entity is limited to providing access to a communication system over which the information is made available by the manufacturer/seller/dealer/importer.

(ii) The e-commerce entity does not:

1. Initiate the transmission;
2. Select the receiver of the transmission;
3. Select or modify the information contained in the transmission
4. The e-commerce entity has observed due-diligence while discharging its duty as an intermediary under the Information Technology Act, 2000 and observes such other guidelines as the Central Government may prescribe.

However, no protection shall be made available to the market place e-commerce entity if:

1. If the e-commerce entity has conspired/abetted/induced, by way of threats or promise to commit an unlawful act;
2. If the e-commerce entity after receiving the knowledge or on being notified by the appropriate government or any of its agency, that the information, data or communication link which is stored in the computer resource owner or controlled by the e-commerce entity is being used to commit unlawful act.

Conclusion

In conclusion, adherence to the LM Rules is important for e-commerce websites aiming to operate ethically in the digital marketplace. These rules protect the consumers by ensuring they have access to accurate and essential product information. By complying with these standards e-commerce entities enhance the consumer trust, avoid legal penalties and establish a reputation for reliability. As the e-commerce sector continues to grow, stringent compliances with LM Rules will remain crucial for transparent business practices, ultimately benefitting both consumers and businesses in the long run.

[1] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/amendmentinpcr_0.pdf

[2] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

[3] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

[4] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

[5] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf