The government has asked e-commerce companies to appoint a nodal officer to ensure compliance with the new rules on consumer protection. The rules are applicable to e-commerce entities registered in India, as well as those registered abroad but offering goods and services to Indian consumers.
This new sub-rule, which has been included in the Consumer Protection (E-Commerce) Rules, 2020, has come into effect from May 17, according to a notification issued by the consumer affairs ministry.
These rules, made under the provisions of the Consumer Protection Act, 2019, apply to all e-commerce entities incorporated under the Companies Act, 1956 or under 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 outside India owned or controlled by a person resident in India as provided in the Foreign Exchange Management Act, 1999, it added.
The new rules for e-commerce entities were first notified in July 2020. Their violations attract penal action under the Consumer Protection Act, 2019.