E-tailers may have to register entities in India

NEW DELHI/BENGALURU: Consumer protection and how data generated is used is at the heart of the draft e-commerce policy that was introduced by the government on Saturday. The 41-page document also puts a slew of restrictions on how foreign online retailers, including fast-growing Chinese e-commerce firms, operate in India. Restricting cross border flow of data and leveraging it to help startups are also some of the other key measures proposed in the policy.

The draft policy, for which public feedback has been sought by March 9, aims to strengthen consumer rights with regards to counterfeit products and the overall grievance mechanism, apart from putting in measures to stem the flow of goods through illegal means into the country. The draft policy comes after the government updated the FDI policy for online marketplaces in December which puts curbs on how large foreign e-tailers operate in India.