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February 20, 2025

Summary: E-Commerce- Principles And Guidelines For Self-Governance (Bureau Of Indian Standards)

Author: Sonal Kumari

The Bureau of Indian Standards (BIS) under the supervision of the Ministry of Consumer Affairs, Food and Public Distribution, published the draft guidelines, which aims to protect consumers from potential counterfeiting in the fast-growing digital shopping industry.

The guidelines require E-commerce entities to ensure that counterfeit, fraudulent or illegal products are not listed or sold or offered for sale by the seller on the e-commerce platform. In this regard, the guidelines require disclosure of relevant information on the reporting and returning mechanism for counterfeit products which may require extended timelines beyond the generic return timelines stated above.

The guidelines shed light on detailed Anti-Counterfeiting measuresincluding well-defined mechanism for rights owners to report instances of violation of their intellectual property rights, which shall include the provision of requisite information pertaining to their rights, and any other evidence of the alleged violation; well-defined mechanism on the platform for consumers to report instances of receipt of counterfeit products to the e-commerce entities; well-defined process to investigate the counterfeiting allegation, and provide a preliminary response to the rights owner within the timeline as set out under applicable law; list of appropriate action(s) that may be taken by the e-commerce entity, at its sole discretion, in accordance with applicable law; and  an appeals process, by which an aggrieved party may communicate with the e-commerce entity on any reservations it may have on actions taken on the platform on the basis of the rights owners report on counterfeiting.

The guidelines further state that where an E-commerce entity receives a report/complaint from a Rights Owner, it shall ensure that the same is immediately forwarded to the concerned seller as well as authorities on its platform within 48 hours and the evidence of such communication is shared with the rights owner. Further, upon receiving a complaint from a consumer regarding the authenticity of a listed product, it shall forward the same to the seller within 48 hours and the evidence of such communication shall be shared with the consumer.

The seller shall be provided with an opportunity to respond to the complaint after which the e-commerce entity may take appropriate actions at its sole discretion. However, any e-commerce entity/ seller which explicitly or implicitly vouches for or guarantees the authenticity of the goods or services sold by it, shall bear appropriate liability in any action related to the authenticity of such good or service. These measures underscore the increasing responsibility placed on e-commerce platforms to combat counterfeiting and ensure greater consumer protection in the digital marketplace.

Disclaimer: Views, opinions, interpretations are solely those of the author, not of the firm (ALG India Law Offices LLP) nor reflective thereof. Author submissions are not checked for plagiarism or any other aspect before being posted.

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