Proposed e-commerce norms can hit consumer interest, increase compliance burden for firms: IAMAI

The proposed e-commerce regulations could negatively impact consumer interest, while creating a high level of uncertainty and increase compliance burden for not just e-commerce companies but MSMEs providing services to online retailers, according to industry body IAMAI.

The draft e-commerce rules released by the government on June 21 proposes to ban fraudulent flash sales and mis-selling of goods and services on e-commerce platforms. Appointment of chief compliance officer/grievance redressal officer are among the key amendments proposed under the Consumer Protection (E-Commerce) Rules, 2020.

In its submission on the draft rules, the Internet and Mobile Association of India (IAMAI) said the proposed amendments raise several concerns and ambiguities from an e-commerce business standpoint, which are also likely to have unintended negative consequences for consumers.