The Ministry of Industry, Commerce and Supplies introduced the e-commerce draft bill recently, which is set to become the primary regulatory framework for all e-commerce business in Nepal. Currently, individuals engage in buying and selling goods and services through social media platforms without specific regulations. Social Media marketing is the platform used for audience engagement to sell products online through popular apps such as Facebook, Instagram, Viber, WhatsApp etc. The bill was passed by the National Assembly on November 2, 2023, but is yet to be reviewed by the Parliament. The e-commerce bill will establish guidelines that businesses must adhere to, mandating a formal registration process for their operation. As of now there is no law that governs the social media business particularly in Nepal. The impacts of e-commerce bill are:

Legal accountability for sellers
The e-commerce bill will establish guidelines that businesses must adhere to, mandating a formal registration process for their operation. The bill covers social media marketing aspects as well. Although there is the Electronic Transaction Act 2006 it does not cover all the aspects of sellers and buyers’ obligation in business. The bill mentions that the transacting platforms must outline the necessary information of the person to start business online to clearly according to section 4(3). Due to lack of these proper rules and regulations relating to e-commerce different people sell products without any proper authorization through social media platforms which brings ambiguity among the consumers. It creates legal accountability for sellers.

Consumer Protection
The e-commerce bill not only aims to oversee transactions but also to ensure and protect consumers' rights in the digital era. The bill ensures that the e-commerce transactions must exclusively take place through the authorized business apps and websites. Any person that desires to start a business online must establish an electronic platform like a webpage or website along with the mandatory registration within the concerned Government authorities. Comprehensive details about the products and services must be mentioned clearly. It outlines the rights and responsibilities of both buyers and sellers. E-commerce transactions must exclusively take place through the authorized business apps and official websites, emphasized in the bill which ensures consumer protection. 

Data Privacy and security
The sellers are required to reveal essential details regarding the nature of the business and products while ensuring the confidentiality of buyer information. Sellers must disclose key information about their products during sales while safeguarding the confidentiality of buyer information. The punishment for failing to register the business online and not disclosing important information is a fine ranging from Rs.10,000 to Rs.50,000. Similarly, major consequences for fraudulent activities in selling products online include potential imprisonment of up to three years and a fine ranging from Rs.3,00,000 to Rs.5,00,000 depending upon the gravity of the offence as per section 23 of the bill.

Transparency
The bill will promote transparency by requiring fair business practices, such as the implementation of anti-fraud measures and the clear disclosure of pricing. An individual, business, or organization can purchase and import goods from foreign e-commerce platforms according to Section 11(1) of the bill. Foreign entities are allowed to conduct business in Nepal as long as they comply with the laws outlined in Section 11(2) of the bill. There are provisions for the goods to be withdrawn in case of fraudulent products. Products for business responsible for perspectives have emerged regarding the e-commerce bill in Nepal, but an optimistic approach is anticipated for improved regulation and responsible conduct of business in online platforms.

Hence, the provision in the bill will only come into force once it has is approved by the parliament and enacted into law. The bill will introduce major changes to consumer protection for online products, making platforms more secure and trustworthy for business transactions. With provisions aimed at regulating the sale of fraudulent products, the bill will foster greater accountability among businesses operating on digital platforms. As a result, consumers will benefit from improved trust in the authenticity and quality of goods. The limitations of the e-commerce bill will only become apparent and be addressed once it is put into practice after being enforced. 

Disclaimer
We hereby declare that the information in this article is for informational purposes only and should not be considered as legal advice. 

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