Any business without regulation would create more
troubles than solutions. The same is unfortunately happening in the
case of e-commerce. Since e-commerce was a new filed in India, it was
logical to give it some time to settle. However, the information
technology act, 2000 was enacted more than a decade ago and this is
sufficient time for allowing the e-commerce to function in India
almost
in an unregulated manner.
However, some heavy weight legal experts have thrown
their weight against such unregulated e-commerce activities in India.
According to Asia’s exclusive techno legal ICT law firm Perry4Law,
India must suitably
regulate e-commerce activities in India.
Fortunately, the Department of Industrial Policy and
Promotion (DIPP), India released a Discussion
Paper (Pdf) on e-commerce in India. The paper has
endorsed the views and suggestions provided by Perry4Law regarding
regulation of e-commerce in India.
The paper has also endorsed the view of Perry4Law
that legal
requirements for undertaking e-commerce in India also
involve compliance with other laws like Contract Law, Indian Penal
Code, etc. Further, online shopping in India also involves compliance
with the banking and financial norms applicable in India.
The paper also cautioned the online payment
providers on the exact line as have been done by Perry4Law. It also
gave the same example of Paypal as provided by Perry4Law and states
that if PayPal has to allow online payments receipt and disbursements
for its existing or proposed e-commerce activities, it has to take a
license from Reserve Bank of India (RBI) in this regard. Further,
cyber
law due diligence (Pdf) for Paypal and other online
payment transferors in India is also required to be observed.
Foreign e-commerce companies have been lobbying in
India to make Indian e-commerce business regulation free. However,
Indian government should not succumb to the pressure tactics and
lobbying by these foreign companies.
It is high time for Indian government to take a
strong stand against the arbitrariness and lawlessness by which the
Indian e-commerce industry is suffering. The sooner this is done the
better it would be for the larger interest of Indian consumers.
