Consumer protection, data privacy focus of draft e-com policy

The new policy also aims to regulate cross-border data flow. 
Image used for representational purpose only
Image used for representational purpose only

BENGALURU: The Central government on Saturday released the draft e-commerce policy to provide a framework that focuses on consumer protection, data privacy and maintenance of a level-playing field for the players. The new policy also aims to regulate cross-border data flow. 

As per the new draft, certain conditions are required to be adhered to by business entities that have access to sensitive data of Indian users stored abroad. Sharing of such data with third party entities, even with customer consent, is barred under the policy. 

However, certain categories of data are exempted from restrictions on cross-border data flow — data not collected in India, B2B data shared between business entities under a commercial contract, data flows via software and cloud computing services, data excluding those generated by users in India from sources like e-com merce platforms, social media activities and search engines shared internally by MNCs.  
The 41-page draft policy focuses majorly on six broad issues that include data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy and export promotion through e-commerce.

It says that all e-commerce websites and applications available for downloading in India must have a registered business entity in India as the importer on record or the entity through which all sales in India are transacted. “This is important for ensuring compliance with extant laws and regulations for preventing deceptive and fraudulent practices, protection of privacy, safety and security,” the report said.
The detail draft is published on DIPP website. The comments are invited before March 9.

Meanwhile, several e-com players have welcomed the draft policy. “Snapdeal welcomes the move to frame a comprehensive national policy on e-commerce, which will provide a facilitative policy environment for India’s fast-growing digital economy,”  Snapdeal said in an e-mail.

The Confederation of All India Traders (CAIT), which has been long demanding an e-com policy, welcomed the move, but said that the draft has left out several things. “This policy is putting everything on Standing Group of Secretaries and DPIIT. Instead, this must be through a committee headed by people’s representatives and comprising of stakeholders, so that the workings are answerable to people and Parliament. The e-commerce policy must provide substantial platform for business. The policy seems to be silent on domestic e-com players, which is undesirable,” CAIT said.

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