Draft E-commerce Self-Governance Guidelines

January 22, 2025

Recently, the Bureau of Indian Standards (BIS) introduced draft guidelines aimed at enhancing self-governance in India’s rapidly growing e-commerce sector. These measures address increasing concerns over consumer protection and trust erosion, reflecting a commitment to ethical practices and transparency. Stakeholders are invited to provide feedback on these proposals, which are designed to create a more equitable environment for businesses and consumers alike.

Draft Guidelines Overview

The draft titled ‘E-commerce – Principles and Guidelines for Self-Governance’ outlines a comprehensive framework.
It covers pre-transaction, transaction, and post-transaction phases, aiming to regulate the entire e-commerce lifecycle.
The BIS seeks to establish clear norms to curb unethical practices.

Pre-Transaction Requirements

Platforms must verify sellers through thorough KYC processes.
Detailed product descriptions, transparent pricing, and safety information are mandatory.
For imported goods, seller details must be clearly displayed.

Transaction Phase Regulations

Explicit consumer consent is required before finalising transactions.
Platforms must provide a review of transaction details and ensure secure payment options.
Full disclosure of associated charges is necessary to build trust.

Post-Transaction Practices

Guidelines mandate effective mechanisms for handling refunds, returns, and grievances. Timely delivery updates and addressing counterfeit products are essential for improving consumer experience.

Consumer Welfare Focus

Platforms must disclose seller information and provide accessible customer support. Compliance with data protection laws is emphasized, restricting personal data usage to disclosed purposes only.

Transparency in Reviews

The guidelines prioritise authenticity in consumer reviews and ratings. Platforms are required to adhere to standards ensuring reliability and transparency in feedback.

Survey

A LocalCircles survey revealed consumer dissatisfaction. Nearly half of respondents reported receiving incorrect products, denoting gaps in return and refund processes. Such insights tell the urgent need for the proposed measures.

Market Context

The Indian e-commerce sector, valued at $70 billion, is projected to grow . By 2030, the number of online shoppers is expected to reach 500 million, driven by increased internet access and smartphone adoption.

Implementation and Compliance

E-commerce platforms must implement the guidelines to encourage a trustworthy ecosystem. Regular audits and seller reviews will help maintain compliance and ensure accurate product listings.

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