ONDC Needs To Address Liability Issue To Succeed: Consumer Affairs Secretary

Consumer Affairs Secretary Rohit Kumar Singh has asked the Open Network for Digital Commerce (ONDC) to address issues related to liability in case of delivery of wrong/ defective products. 

Speaking at ‘Deloitte Growth with Impact Government Summit’, Singh said it is important to address the liability issues to provide satisfactory services to the consumers, news agency PTI reported.

“If I order through an app of a bank through Amazon and buy it from a seller located elsewhere and I get the wrong phone, then who is liable? So the issue of liability… I keep telling Mr T Koshy (ONDC CEO) that you have to address the issue of liability otherwise this thing is not going to work,” Singh was quoted as saying. 

ONDC is a private non-profit platform backed by the Department for Promotion of Industry and Internal Trade (DPIIT). It was incorporated on December 31, 2021, with an aim to democratise ecommerce in the country.

In April last year, the government soft launched ONDC in five cities, including Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. Since then, the network has grown by leaps and bounds. While it began with food and grocery delivery, the platform has now also onboarded partners for electronics, fashion, and mobility services. 

Recently, Koshi told Inc42 that ONDC was looking to venture into the financial products and services segment. There were also recent reports about ONDC’s entry into skill-based services such as appliance repair and teaching assistance.

“I hope ONDC becomes a success, but in the law where does ONDC fit in? It is neither the seller nor the buyer. But If I am buying through the app…if something goes wrong, there are five parts of the chain (in ONDC supply chain), then who is liable,” said Singh at the event today.

He said that if something goes to court, every time the liability will come to the government as the latter is a part of it.

“Before things like ONDC become mammoth and huge, the issue of liability must be addressed,” he added.

As per the new agency’s report, an official said that ONDC is working to provide a system to the consumers so that grievance redressal is done properly. 

Meanwhile, Redseer said in a recent report that ONDC is poised to push growth in the ecommerce space across sectors and potentially generate $250-300 Bn in gross merchandise value by 2030.