ARTICLE
18 October 2024

Compliances For Website/E-Commerce Website

SR
S.S. Rana & Co. Advocates

Contributor

S.S. Rana & Co. is a Full-Service Law Firm with an emphasis on IPR, having its corporate office in New Delhi and branch offices in Mumbai, Bangalore, Chennai, Chandigarh, and Kolkata. The Firm is dedicated to its vision of proactively assisting its Fortune 500 clients worldwide as well as grassroot innovators, with highest quality legal services.
E-Commerce compliance under the Legal Metrology (Packaged Commodities) Rules, 2011 is an important aspect of ensuring transparency, fairness and consumer protection in the rapidly evolving digital marketplace.
India Media, Telecoms, IT, Entertainment

Introduction

E-Commerce compliance under the Legal Metrology (Packaged Commodities) Rules, 20111 (hereinafter referred to as "LM Rules") is an important aspect of ensuring transparency, fairness and consumer protection in the rapidly evolving digital marketplace. For e-commerce businesses, compliance with these rules require adhering to stringent labelling requirements, ensuring accurate and visible display of products information. Failure to comply with these rules can result in penalty and damage to the brand's reputation. Therefore, it is important for the e-commerce entities to comply with these rules to build consumer trust and to avoid any legal consequences.

What is E-Commerce?

The term e-commerce is defined under Rule 2(bd) of the LM Rules2. As per this rule, it means buying and selling of goods and services including digital products over digital and electronic network.

What is E-Commerce Entity?

The term e-commerce entity is defined under Rule 2(be) of the LM Rules3. As per this rule, it means a company which is incorporated under the Companies Act, 1956 or 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 in India covered under sub-clause (ii) of clause (v) of section 2 of the foreign Exchange Management Act, 1999 (42 of 1999) owned or controlled by a person resident outside India and conducting e-commerce business.

What is Marketplace based model of E-Commerce?

It is defined under Rule 2(bf) of the LM Rules4. It means providing of an information technology platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

Compliances for E-Commerce

According to Rule 6(10) of the LM Rules5, every e-commerce entity shall ensure that the following declaration which are required to be made under Rule 6(1) of the LM Rules is displayed on digital and electronic network which is used for e-commerce transactions:

  1. Name and address of manufacturer / packer / importer
    For eg. ABC India Ltd, Plot No. 4, Sector 35, Jamnagar, New Delhi – 110014
  2. Country of origin
    For eg. Manufactured in India.
  3. Generic name
  4. Net Quantity
    For eg. Net Quantity: 200g
  5. Date of Manufacture
    For eg. Mfg. Date: 10th January, 2024
  6. Best Before / Use by date
    For eg. "BEST BEFORE 12 MONTHS FROM MANUFACTURING"
  7. MRP inclusive of all taxes
    For eg. MRP Rs. 50 (INCL. OF ALL TAXES)
  8. Dimensions of the commodity
    For eg. Length: 12 inches
    Width: 8 inches
    Height: 4 inches
  9. Consumer care details
    For eg. For feedback or queries, write to:
    THE CONSUMER CARE MANAGER, ABC India Ltd, Plot No. 4, Sector 35,Jamnagar, New Delhi – 110014,
    OR Call us at 18002345784
    OR Email us at consumercare@abc.com
  10. Unit Sale Price
    For eg. UNIT SALE PRICE: Rs. 60; Rs. 0.30/g

NOTE: The said rule describes that in a market place model of e-commerce, the responsibility of correctness of the declarations shall lie with the manufacturer/seller/dealer/importer, only if:

  1. The function of the e-commerce entity is limited to providing access to a communication system over which the information is made available by the manufacturer/seller/dealer/importer.
  2. The e-commerce entity does not:
    1. Initiate the transmission;
    2. Select the receiver of the transmission;
    3. Select or modify the information contained in the transmission
    4. The e-commerce entity has observed due-diligence while discharging its duty as an intermediary under the Information Technology Act, 2000 and observes such other guidelines as the Central Government may prescribe.

However, no protection shall be made available to the market place e-commerce entity if:

  1. If the e-commerce entity has conspired/abetted/induced, by way of threats or promise to commit an unlawful act;
  2. If the e-commerce entity after receiving the knowledge or on being notified by the appropriate government or any of its agency, that the information, data or communication link which is stored in the computer resource owner or controlled by the e-commerce entity is being used to commit unlawful act.

Conclusion

In conclusion, adherence to the LM Rules is important for e-commerce websites aiming to operate ethically in the digital marketplace. These rules protect the consumers by ensuring they have access to accurate and essential product information. By complying with these standards e-commerce entities enhance the consumer trust, avoid legal penalties and establish a reputation for reliability. As the e-commerce sector continues to grow, stringent compliances with LM Rules will remain crucial for transparent business practices, ultimately benefitting both consumers and businesses in the long run.

Footnotes

1. Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/amendmentinpcr_0.pdf

2. Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

3. Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

4. Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

5. Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8%28xii%29_0.pdf

For further information please contact at S.S Rana & Co. email: info@ssrana.in or call at (+91- 11 4012 3000). Our website can be accessed at www.ssrana.in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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