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E Commerce · Digital

E commerce legal compliance and platform advisory

FDI policy for e commerce, Consumer Protection (E Commerce) Rules, marketplace versus inventory model compliance, platform liability and digital commerce regulatory advisory.

Counsel that connects the technical, the commercial, and the legal, across ten offices in India.
FDI Policy
Press Note 2 (2018)
CPA Rules
2020
Platform
Compliance
10
Offices
01

FDI policy for e commerce

  • Press Note 2 of 2018: marketplace model (100% FDI) versus inventory model (FDI prohibited).
  • B2B e commerce: 100% FDI under automatic route.
  • Vendor independence, platform neutrality and deep discount restrictions.
  • Affiliated entity and group company transaction limits.
02

Consumer protection and e commerce rules

  • Consumer Protection (E Commerce) Rules, 2020: entity classification, display requirements and grievance redressal.
  • Dark patterns prohibition under CCPA Guidelines, 2023.
  • Return, refund, exchange and cancellation policy mandates.
  • Flash sale restrictions and price manipulation controls.
03

Platform liability and intermediary compliance

  • IT Act Section 79 safe harbour: conditions for intermediary protection.
  • IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021: due diligence, grievance officer and compliance officer.
  • Significant Social Media Intermediary (SSMI) additional obligations.
  • Payment aggregator and escrow requirements for marketplace transactions.
04

How AMLEGALS assists

  • E commerce business model compliance audit.
  • Marketplace terms and conditions, seller agreements and consumer policies.
  • FDI compliance structuring for e commerce entities.
  • CCPA and consumer forum representation.
Answers

What clients ask before they commit.

Short, direct, on the record.

01Can a foreign company operate an inventory based e commerce business in India?

No. The FDI policy (Press Note 2 of 2018) prohibits FDI in inventory based e commerce. Foreign owned or controlled entities can only operate marketplace model e commerce platforms. The distinction between marketplace and inventory models is strictly enforced.

02What is the dark patterns regulation for e commerce in India?

The CCPA issued Guidelines for Prevention and Regulation of Dark Patterns in 2023, identifying 13 prohibited dark patterns including false urgency, basket sneaking, confirm shaming, forced action, subscription traps, interface interference, bait and switch, drip pricing, disguised advertisement, nagging, trick question, saas billing and rogue malware.

03What are the grievance redressal requirements for e commerce entities?

E commerce entities must appoint a grievance officer (Indian resident), acknowledge complaints within 48 hours, resolve within one month, display contact details prominently and establish a consumer grievance redressal mechanism accessible through the platform.

04Is GST registration mandatory for online sellers?

Yes. All e commerce operators must register under GST regardless of turnover. Sellers on e commerce platforms must also register unless eligible for the composition scheme. TCS (Tax Collected at Source) obligations apply to the e commerce operator at 1% of net taxable supplies.

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Discuss e commerce compliance or platform advisory

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