Recently, the Indian government released the “Draft National E-Commerce Policy”. This policy includes the construction of the Indian e-commerce ecosystem. Among them, cross-border e-commerce platforms should pay attention to: the supervision of e-commerce platforms and the protection of consumer rights.
First, let me explain the key points of this Indian e-commerce policy and the comparison with China’s e-commerce law:
Platform policy India VS China
1: India’s rules on e-commerce platforms
01| E-commerce websites that do not meet the requirements will be blocked in India and cannot be accessed by local residents.
This policy reminds all e-commerce websites to comply with local e-commerce laws and regulations, otherwise they will be forcibly blocked.
02| All Indian e-commerce websites and e-commerce apps that can be downloaded must have registered business entities in India. This can prevent fraud well and protect the privacy and security of consumers.
Chinese e-commerce sellers should pay attention. Once the new regulations are issued, e-commerce websites and apps must have registered entities to avoid risks. In this way, the control of e-commerce platforms and the protection of India’s local economy will be strengthened.
03|Unauthorized and unregistered websites and applications are prohibited from obtaining support from Indian banks and payment websites.
Unauthorized or unregistered websites will not receive payment support.
2: China’s rules on e-commerce platforms
01|Taobao stores, WeChat merchants and other natural person operators will need to register for business and pay taxes according to law.
When the new regulations were first issued, in terms of passenger luggage inspection, just one day! Just one day! The customs at Terminal T2 of Shanghai Pudong Airport was covered with luggage! It is reported that the number of purchasing agents investigated was as high as more than 100. And the circle of friends that day can be described as “sad and miserable”, and the purchasing agents “lost all their money”!
02|Brushing orders and brushing reviews will be suspected of being illegal.
03|Transportation risks such as logistics damage and express delivery loss will be borne by the seller
Consumer Rights Protection India VS China
1: India’s policy on consumer rights protection
01|The trademark owner registers on the e-commerce platform by himself. When products with the trademark are sold on the platform, the platform should notify the merchants of the trademark.
For example, Xiaomi is sold in India and needs to be reported to the Xiaomi trademark holder. In addition, once there is a product sold online with the Xiaomi logo, the platform will notify the trademark holder and conduct subsequent investigations to prevent counterfeiting and shoddy products.
02|If the trademark owner is willing, the e-commerce platform shall not sell its products without the consent of the trademark owner.
03|For special high-value goods (or luxury goods), cosmetics and products that have an impact on public health, the platform needs to seek authorization from the trademark owner before listing such products.
In short, whether you are a distributor or an agent, you need to obtain the consent of the trademark owner, and authorization is also required for certain categories.
This has affected international cross-border e-commerce platforms such as Amazon to sell goods in which they hold shares. This is a heavy blow to cross-border e-commerce and some cross-Indian e-commerce in China.
04|If the platform receives a complaint about counterfeit products, the information must be transmitted to the trademark owner within 12 hours.
If the trademark owner informs the platform that the product is a counterfeit product, the platform should promptly inform the seller. If the seller cannot prove that the product is genuine, it needs to cancel the sale of the product.
05|If the seller sells counterfeit products, the platform has the right to freeze the seller’s funds on the platform. In addition, the platform can also blacklist the seller and prohibit it from selling on the platform for a period of time.
Regarding customer complaints and counterfeit and shoddy products, this point is similar to the Chinese e-commerce law. Both must fully guarantee the rights of consumers and severely punish counterfeit and shoddy illegal merchants.
2: China’s policy on consumer rights protection
01|You have the right to say no to the phenomenon of “big data killing familiarity”.
02| Matters such as deposit refund will be more convenient.
03| When receiving express delivery, on-site inspection is protected by law.
Foreign trade friends, after reading this, have you seen the swiftness of India’s new e-commerce regulations? From platform physical store registration to new regulations on trademark registration, they all build a cross-border e-commerce ecosystem from the root.
China’s e-commerce laws define e-commerce operators and their obligations in more detail.
In 2017 (2018 has not yet been announced), the total amount of Indian e-commerce was 39 billion US dollars (about 261 billion RMB), and the total amount of online retail sales of physical goods in China reached 81.8 trillion US dollars (about 5.48 trillion RMB).
It can be seen from this that China chooses to control the e-commerce market when it is more mature, while India has a different entry point. Many cross-border e-commerce entrepreneurs describe the Indian e-commerce market as the next new market that can explode like the Chinese market. How will this market eventually go?
In the end, it remains to be verified by time.