Ecommerce to be regulated by various government bodies

Since a while now, we have been harping about the importance of the Indian government creating a guiding framework for ecommerce in the country. According to recent reports, that dream is soon going to materialise.

The department of consumer affairs has put forward a proposal that could bring ecommerce under the scanner of various regulatory bodies in India including the RBI, home ministry, the department of revenue in the finance ministry, and ministry of corporate affairs.

What it’s all about

The draft proposal created explains that, “a clear demarcation of the activities of ecommerce should be handled by different departments. The emergence of ecommerce has given rise to the need for specific guidelines of monitoring and regulation of the industry. However, at present issues linked to ecommerce do not come under the purview of a single legislation or department/ministry.”

This pushes for regulation by multiple government bodies instead of a single one, since ecommerce is so vast and complex.

So, what does the ecommerce industry think of this move?

Arvind Singhal, chairman of retail consultancy Technopak, sums up his opinion in the most succinct manner, “There are enough rules, and the industry doesn’t need any new rules. If the government has consumer protection in mind, we welcome steps which would reduce fraud across retail both online and offline. Online trade is a modern day reality and the government cannot put the genie back in the bottle. The beauty of ecommerce trade is the very fact that it eases buying and selling, and cuts time. The moment you push it under the heavy weight of regulations, they will only rob the ecommerce industry of its advantages over other forms of retail trade.”

Well said, Arvind! As for now, we will have to wait and see how the government’s ecommerce regulatory framework shapes up.