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Draft e-commerce rules: Companies express concern on proposed fallback liabilities clause

E-commerce companies say that the proposed fall-back liability is akin to making a mall owner responsible for a defective product sold by a shop in the mall.

June 29, 2021 / 11:52 AM IST
Companies are worried about the draft Consumer Protection (E-Commerce) Rules, 2020, issued by the government on June 22.

Companies are worried about the draft Consumer Protection (E-Commerce) Rules, 2020, issued by the government on June 22.

The government’s proposal to make companies like Amazon and Flipkart liable for a seller’s negligence or failure to deliver will kill the objective of being a facilitator, e-commerce companies and market experts said.

Companies are worried about the draft Consumer Protection (E-Commerce) Rules, 2020, issued by the government on June 22.

"A marketplace e-commerce entity shall be subject to a fall-back liability where a seller registered on its platform fails to deliver the goods or services ordered by a consumer due to negligent conduct, omission or commission of any act by such seller in fulfilling the duties and liabilities in the manner as prescribed by the marketplace e-commerce entity which causes loss to the consumer," the draft says.

The document defines a marketplace as barely an e-commerce entity which provides a technology platform to facilitate transactions between buyers and sellers.