Proposed Ecommerce Policy Likely To Suggest Voluntary ONDC Registration

Govt Mulling App To Curb Deceptive Practices By Online Platforms

SUMMARY

The proposed new policy is likely to recommend voluntary registration, signalling a departure from previous considerations

Earlier, the government was considering making ONDC a comprehensive one-stop service-providing network
Praveen Khandelwal, Secretary General of Confederation of All India Traders (CAIT), suggested that beyond ONDC registration, all online players need to make obligatory registration with DPIIT

The government may not make it mandatory for online business firms to register on Open Network Digital Commerce (ONDC) in the proposed new ecommerce policy.

As per Mint’s report, the Department for Promotion of Industry and Internal Trade (DPIIT) may not mandate online portals to disclose their ‘buyer and seller’ database to the ministry’s service facilitator ONDC.

However, the proposed new policy is likely to recommend voluntary registration, signalling a departure from previous considerations. This shift in stance follows a conclusive round of consultations with stakeholders in early August. Earlier, the government was considering making ONDC a comprehensive one-stop service-providing network.

The proposed new ecommerce policy may address concerns related to unfair trade practices, including issues such as predatory pricing and flash sales.

In the proposed legislation, the government has already eased the mandatory requirements for establishing an independent regulator, specifically dedicated to overseeing online retail platforms.

Praveen Khandelwal, Secretary General of Confederation of All India Traders (CAIT), suggested that beyond ONDC registration, all online players need to make obligatory registration with DPIIT. Besides, he also proposed the establishment of a separate regulatory body to curb online fraud effectively.

Recently, industry stakeholders pitched the Centre to permit foreign direct investment (FDI) in inventory-based ecommerce platforms involved in exporting goods.

From the current policy perspective, FDI is only permissible in ecommerce platforms that operate on a marketplace model and is barred for inventory-based ecommerce entities.

The development of the e-commerce policy has been an ongoing effort since 2018. The government’s strategy involves consolidating various rules and regulations governing ecommerce platforms into a comprehensive and unified regulatory framework. This inclusive approach aims to integrate key components, such as the Consumer Protection Act, the Foreign Direct Investment policy issued by the DPIIT, the Competition Act, and the forthcoming Digital India Act, into a cohesive set of regulations for the ecommerce sector.