Framework for e-commerce sites

The Union government Monday unveiled a framework for e-commerce sites to curb fake reviews on e-commerce websites.

The framework, ‘Indian Standard (IS) 19000:2022’, has been prepared by the Bureau of Indian Standards and will come into effect from November 25.
Consumer Affairs Secretary said the standards would apply to every online platform which publishes consumer reviews.

Electronic commerce or e-commerce is a business model that lets firms and individuals buy and sell things over the Internet.

In 2022, the Indian e-commerce market is predicted to increase by 21.5%, reaching US$ 74.8 billion and US$ 188 billion by 2025 from US$ 46.2 billion as of 2020.
It is estimated to reach US$ 111 billion by 2024 and US$ 200 billion by 2026.
By 2030, the e-commerce market may touch US$ 350 billion.

Disclose sponsored reviews
From November 25, all e-commerce players, travel and ticketing portals, and online food delivery platforms will have to voluntarily disclose all paid or sponsored reviews about the products and services offered on their portals.
Applicability
This will be applicable even to independent third-party entities that post such reviews online.
Unfair trade practice
Cautioning that failure to comply with the BIS standard will amount to unfair trade practice, and action can be taken against such entities as per the Consumer Protection Act.
Specify the period
The online platforms have to specify the period when the reviews were collected so that consumers are correctly informed.
‘Verify a review author.’
The guidelines provide ways to ‘verify a review author’ through email, telephone or text message to confirm the registration or by clicking a link, and using a captcha system, to establish genuineness.

Reviews posted online to play a significant role in purchasing decisions. Consumers rely significantly on reviews posted on e-commerce platforms for first-hand experiences and opinions of those who have purchased the item or service.

Availability and flexibility
E-commerce sites are available all around the clock. There is no time limit on its opening. Customers can access the site anytime and order a product they desire.
Speed of access

Customers may have to face crowding in physical stores, which may slow down purchasing activity.
On the contrary, e-commerce sites run quickly online, allowing the consumer to finish shopping within a few minutes.
Wide range of options
The e-commerce sites offer a wide range of choices to consumers. This allows the consumers to purchase the product best suited to their preferences.
Lower cost

The e-commerce players can avoid incurring the cost of rent, inventory or cashiers. Instead, all they incur is the shipping and warehouse cost.
This reduces the overall cost of a product making it more competitive in the market and attractive to customers due to its affordability.
Personalisation and product recommendation
The e-commerce sites track a visitor’s browsing, search and purchase history, and they use this data to present personalised product recommendations and obtain insights about target markets.

Security faults in online transactions create a sense of fear in users’ minds.
People fear providing personal and financial information on e-commerce sites which adversely affects the growth of this sector.
Lack of privacy
The need for adequate encryption facilities to protect personal data, identity or financial transactions is impeding the acceptance of e-commerce shopping habits among people on a wide scale.
Regulatory issues
The cyber laws regulating such purchases are primarily ambiguous, and thus they lead to trust issues between the buyer and consumer.
Limited knowledge about product suitability

Online purchases do not offer consumers the facility of ‘touch and feel’. Instead, customers have to rely on electronic images to purchase products.
Often the products delivered to the end user may not match the electronic images shown on the site, eventually resulting in the buyer’s needs not being fulfilled.
Extinction of local traders and producers
Local traders often need help to compete with giant e-commerce platforms.

The Consumer Protection (e-commerce) Rules, 2020
The Rules directed the e-commerce companies to display the country of origin alongside the product listings.
Open Network for Digital Commerce

It was launched by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
It aims to create new opportunities and curb digital monopolies.

Data localisation policy
The government must draft a data localisation policy, which helps protect customer data to some extent.
Local content requirement
The government should bring rules to local content requirements to protect local producers.

About
The Bureau of Indian Standards is the National Standards Body of India under the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution.
Launched

The Bureau of Indian standards (BIS) Act 2016 establishes the Bureau of Indian Standards (BIS) as the National Standards Body of India.
It is headquartered in New Delhi.
Features

BIS act provides enabling provisions for making hallmarking of precious metal articles mandatory.
There is a provision for repair or recall of the products (bearing Standard Mark) that do not conform to the relevant Indian Standard.
Duties and responsibilities

Activities include standardisation, certification, hallmarking, and product testing in laboratories.
BIS collects market samples for independent testing to ensure the quality of ISI-marked products.
Action is taken against violating firms whose products do not meet Indian standards.
BIS organises Consumer Awareness Programs to educate consumers about the quality of ISI-marked items and their misuse and colourable imitations.

Content Source: Indian Express