Online Business operators may be fined up to Rs 200000 for misconduct

Online businesses platforms operating without taking a license and not following the laws of e-commerce platforms may now be fined up to Rs. 200000. The Electronic Business Act that is underway is seeking to implement this law in order to penalize those using this platform to mislead consumers.

Amidst the pandemic, it has been observed that consumers do not have any way to win a legal battle against online business owners in case of misconduct, which is becoming a greater issue as online business related activities have increased tremendously. The Department of Commerce, Supplies and Consumer Protection has recorded a high number of complaints regarding misleading advertisements, lack of quality of products and problems in return and exchange of products against online businesses, clearly showing that action needs to be taken. Cases have been reported in which consumers had to wait for more than a month in order to carry out the exchange or receive their money.

The proposed Electric Business Act is attempting to make refunds faster, more efficient and reliable if delivered products are below acceptable standards or not the same as the consumers’ orders. Separate licenses for producers, sellers and service providers will be required once this law is implemented. It also aims to make the businesses take complaints and grievances more seriously. Detailed information on contact, officials, price, transport, additional charges and taxes must also be provided clearly on the online business website.


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