Onetech Sheet - CP Compliance Asks
Legal Metrology and Consumer Protection E Com Rules Compliance Tech Requirement For E Commerce Platform
Brief on Legal Metrology Rules
The Legal Metrology Act, 2009: was established to enforce standards of weights and measures, regulate trade and commerce in weights, measures and other goods which are sold or distributed by weight, measure or number and for matters connected therewith or incidental thereto. There were numerous changes amendments over the years (2010, 2011, 2012, 2013, 2015, 2016, 2017, 2021 (new regulation effective 1st Oct 2022 )
This is with reference to the Legal Metrology Rules (LM Rules) and mandatory display requirements applicable to all platforms, including Flipkart Marketplace platforms for the benefit of all Consumers.
These mandatory attributes are necessarily to be filled in by the Sellers for all products they are listing and selling on Group MP Platform.
The New Rule under LM Rules mandates certain additional display compliance requirements for the Group MP and which will be effective from 1st Oct 2022.
Brief on Consumer Protection E commerce rules -
New Consumer Protection Act, 2019 came into force and it introduced the Consumer Protection (E-commerce) Rules, 2020 to regularize activities of digital or electronic networks providers like all models of E-commerce, including Marketplace and Inventory models of E-commerce. The E-commerce Rules regulate the duties, responsibilities and liabilities of the digital or electronic network providers, products and service providers and protect the rights of the Consumers from any unfair trade practice by digital or electronic networks providers, products and service providers.
Why is this required?
Mandating these is necessary to be compliant as per law of land. The law of the land asks Marketplace E-commerce Platforms, as intermediaries, to mandate the Sellers to provide these details. However, Marketplace E-commerce Platforms are not liable for the accuracy of these details. That liability is with the Seller and he will be held accountable for the same by the authorities.
The Consumer Protection (E-commerce) Rules, 2020 gives more visibility to the products and services which are offered on the E-commerce Platform, provide the rights and also protects the Consumers from getting defective products, deficiencies in services, prohibit the Sellers and E-commerce Platform from selling adulterated food products and broadcasting false and misleading advertisements and restrict E- commerce entities from getting into any Unfair trade practices defined under Consumer Protection Act, 2019.
Compounding Offenses & Penalties for LM Non Compliance:
Penal Provision Legal Metrology is one of the stringent laws that are prone to be often misunderstood and leave many into paying hefty penalties due to non-compliances, these Non-compliance might lead to the penalties up-to.
- Up to Rs. 25,000/- per director plus company for a first offense,
- Up to Rs. 50,000/- for second offence per director plus company and
- For the subsequent offense, with fine which shall not be less than Rs.50,000/- but which may extend up to Rs. 1 Lakh per director and plus company or with an imprisonment for a term which may extend to one year or with both. . An e-commerce entity to whom Legal Metrology Act and the Rules made thereunder applies may be liable to investigations and checks by relevant authorities to ensure compliance with the provisions of the act and rules made thereunder. This can include verifying measurements, weights, and inspection of records and documents.
- Any non-compliance, found during the investigation and checks, may attract penal provisions as well.
Compounding Offenses & Penalties for Consumer Protection E Commerce Non Compliance:
Consumer Protection Act, 2019 gives rights to Central Consumer Protection Authority to take actions to prevent unfair trade practices in e-commerce. The actions include imposing heavy penalties, compounding fees and penal provisions for various offenses. The penalties and include -
- Starting from Rs. 10,00,000/- to fifty lakhs (misleading ads, unfair trade practices
- Noncompliance of any direction of central authority shall be punished with an imprisonment up to 6 months and fine up to 20 lakhs or with both
Applicability:
These requirements are governed by Legal Metrology Packaged Commodity Rules and Consumer protection ECom Rulesapplicable for ALL listings on platforms.
Validation Process:
- For all old and newly created listings, necessary attributes have to be made mandatory. (FOR LM)
- This is applicable to across all old and newly listed sellers. (FOR CP E COM RULES)
- The seller should see the following error reason message if fails to update LM regulatory Requirement -
“LEGAL_METROLOGY_DETAILS_ABSENT” and error_message indicating - “You need to provide
“Consumer protection E Com Rules” and error_message indicating - “You need to provide
Below are the CP asks compliances to be covered under the LM Rules and CP Rules displayed on Flipkart Platform
Sr. No. |
Display Requirements on Flipkart Platform under LM and CP E COM Rules |
Proposed ETA for implementation |
|---|---|---|
1 1a |
Add Seller information i.e Seller's legal name, complete address, contact no. & email address Seller grievance officer details (Name, Complete address, Contact No. & email address). |
30th June 2022 |
2 |
Add the word “Net Quantity” on the product listing page below the product name / price display. |
30th July 2022 |
3 |
Add a separate Tab for “Consumer Protection Policy” below EPR compliance Tab available under ‘Policy’ main tab on main page |
30th July 2022 |
4 |
Add customer facing policies Tab (a. All Customer facing policies b. Flipkart Grievance Officer details c. Customer Care Details) and replicate Fliipkart Grievance Officer’s details to Newly created “Consumer Protection Policy’ Tab |
30th July 2022 |
5 |
Add word “MRP (Inclusive of all taxes)” near to the price display on product listing page |
30th July 2022 |
6 |
Add wordings (Inc. of all taxes) below the price display on product listing page |
30th July 2022 |
7 |
Create a provision for sellers to display their product listings sold by number, with options ‘number’ or ‘unit’ or ‘piece’ or ‘pair’ or ‘set’ which represents the quantity. |
15th September 2022 |
8 |
Group LM and CP E COM display attributes together at one place for the benefit of platform compliance and consumer visibility |
15th November 2022 |
9 |
Create an Automated blocker mechanism for the sellers, who are not providing
|
15th November 2022 |
10 |
Create an Automated system to track and control who is providing country of origin which is mismatching with original details for the imported products |
15th November 2022 |