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The pet-care sector has seen a massive growth in India, particularly during the pandemic. The sector is estimated to touch INR 10,000 crore by 2025[1], with the number of pets increasing at a rate of 11% per annum[2]. Healthcare services, nutrition, drugs, and pet-grooming form the core of the overall pet care sector.

Alongside growth, the pet care sector has witnessed a noticeable increase in competition with the entrance of several established as well as nascent players. Large organisations (like Emami) view investment in the pet-care sector as a favorable avenue for corporate diversification[3]. Owing to the specialised nature of the sector, the market trend appears to be one of strategic collaborations between large industry players and smaller organisations with niche focus areas. There are also collaborations between smaller organisations which aim to increase their reach and market share in the pet care sector – an example is the recent acquisition of Capt Zack (specializing in pet accessories) by Wiggles (specializing in pet food).Continue Reading The (Pawsome) Pet Care Sector: Legal Insights

Online Reviews

The world today thrives on online purchases[1] and recommendations. Most of us have relied upon or submitted online reviews for a product we have purchased, food we have consumed or even a service we have availed at some point or the other. From a service provider or seller’s perspective, there are several monetary incentives attached to such online reviews and ratings. Service sectors that get the most online reviews are food delivery services, restaurants, hotels, home cleaning or repair works and the likes. In case of products, there aren’t many that are indifferent to online reviews.Continue Reading Are Online Reviews Regulated – The Indian Narrative

Draft Consumer Protection (Direct Selling) Rules, 2021

Unlike the erstwhile Consumer Protection Act, 1986, the Consumer Protection Act, 2019 (“CPA 2019”), has defined ‘direct selling’[1], and expressly included any person who buys products or avails services through direct selling or multi-level marketing within the definition of ‘consumer’. However, a framework for regulating direct selling under the CPA 2019 has not been put into place till now. With the recently released draft Consumer Protection (Direct Selling) Rules, 2021 (“Draft Rules”), the Department of Consumer Affairs has finally taken demonstrable steps towards formalising the regulatory framework for direct selling entities in India.Continue Reading Draft Consumer Protection (Direct Selling) Rules, 2021: A much awaited step towards regulating direct selling businesses

Safe Harbour Protection for E-Commerce platforms

In recent times, the debate around safe harbour protection has grabbed media attention on account of the recently notified Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“2021 Intermediary Rules”), and the ensuing spat between the Government and social media heavyweights like Twitter.Continue Reading Safe Harbour Protection for E-Commerce platforms

Consumer Protection E-commerce Rules – The EduTech Impact

Background

The last few years have seen customers and industry alike benefit from their increased focus on digital platforms in a changing world. Education technology, which is a prominent business vertical of the education sector, stands out for diversifying the means of learning and teaching to an extent that both students and parents have accepted online teaching models as supplement to the formal education system. While the Edutech space was steadily gaining traction, Covid’s sudden impact on physical learning afforded this sector an unparallel opportunity. The approximately USD 800 million investment into the sector in the first six months of 2020 justifies the narrative of emerging as the `next big thing.’
Continue Reading Consumer Protection E-commerce Rules – The EduTech Impact 

Consumer Protection E-Commerce Rules - Need for More Clarity Blog

The Ministry of Consumer Affairs, Food and Public Distribution has, on July 23, 2020, notified the Consumer Protection (E-Commerce) Rules, 2020 (“Rules”) under the Consumer Protection Act, 2019 (“Act”), with an intent to prevent unfair trade practices in e-commerce and protect interests and rights of consumers.

Scope and Applicability 

The Rules are intended to apply to (i) all goods and services bought or sold over digital or electronic networks, (ii) all models of e-commerce, and (iii) all formats of e-commerce retail, with the exception of natural persons transacting in their personal capacity (which is not part of any professional or commercial activity undertaken on a regular or systematic basis). In the absence of any guidance on what ‘regular or systematic basis’ means, a plain reading of this exclusion makes it very narrow.

The Rules govern e-commerce entities (“Platforms”), which own, operate, or manage, a digital or electronic facility or platform for electronic commerce, and sellers of products and services.
Continue Reading Consumer Protection E-Commerce Rules: Need for More Clarity

e-commerce platforms allowed to list products of direct selling entities without their consent

E-commerce websites such as Amazon, Flipkart, Snapdeal and 1MG (“Online Platforms”) can now breathe a sigh of relief. The Division Bench of the Delhi High Court (‘Division Bench’), in a recent judgment in Amazon Seller Services Pvt. Ltd. v. Amway India Enterprises Pvt. Ltd. & Others[1], allowed e-commerce websites/ platforms/ mobile applications to list products of direct selling entities like Amway, Modicare and Oriflame (“Direct Selling Entities”) without their consent.

In July 2019, a single-judge (“Single Judge”) bench of the Court had, in Amway India Enterprises Pvt. Ltd. v. 1MG Technologies Pvt. Ltd. & Another[2], restrained such online platforms from displaying, advertising, offering for sale, selling, facilitating repackaging of any products of Direct Selling Entities, without their written permission/ consent. The Single Judge had also directed Direct Selling Entities to give notice to the concerned Online Platforms to take down relevant listings if they found their products being displayed on such platforms without their consent. Accordingly, the Online Platforms would then have to take down the said listings within 36 hours.
Continue Reading ‘BUY NOW’ or ‘REMOVE FROM CART’? – Delhi HC allows e-commerce platforms to list products of direct selling entities without their consent

India’s Foreign Investment Policy on E-commerce Retail

The Indian government has been striving to effectively regulate India’s e-commerce retail market, since its first attempt in 2000. The regulations have been a by-product of the fear of organised global retail with deep pockets adversely affecting scores of unorganised “mom-and-pop shops” and retailers. The Indian foreign direct investment policy on e-commerce retail has been amended several times, and the e-commerce business houses operating in India have restructured themselves to fall in line with every such change in policy without significantly altering their operations.

In the latest episode of this ongoing saga, the Government of India issued a Press Note No. 2 (2018 Series) on December 28, 2018, to effectively legislate against e-commerce entities that disguise their inventory-based business models[1] as marketplaces[2]. Reportedly[3], Walmart-backed Flipkart and Amazon India are undergoing complex structuring and restructuring to align themselves with the amended policy. This to and fro between the Government and e-commerce players has not only been unproductive for the country’s economy, but is also against this Government’s stated objective of certainty and Ease of Doing Business in India. While the effective implementation of the regulations governing e-commerce retail continues to be a significant issue, there are certain other fundamental concerns relating to the approach of the Indian government towards e-commerce retail, which require immediate consideration.    
Continue Reading India’s Foreign Investment Policy on E-commerce Retail: Is the time ripe for a reworking?