- A. LM Act
- B. BIS Act
- C. Import and Export Laws
- D. Consumer Protection Act and the Rules/Guidelines Issued Thereunder
- E. Data Protection Laws
- F. Compliance with IT Rules
- G. Compliance with Pesticides Laws
- H. Compliance with Fertiliser Laws
- 8.1 Registration of Industrial Dealer and Authorisation Letter for Dealers
- 8.2 Certificate of Manufacture
- 8.3 Restrictions on Manufacture, Sale, etc. of Fertilisers
- 8.4 Packaging and Labelling Requirements
- 8.5 Compliance with FMC Order
- 8.6 Import and Export of Fertilisers
- 8.7 Disposal of Fertiliser and Other Compliances
- I. Compliances for Selling, Storing and Distributing Seeds
- J. Compliances under State-Specific Animal Feeds Acts
A. LM Act
1.1 Licensing or Registration Requirement
Any individual, firm, society, company, corporation, or Hindu Undivided Family that pre-packs or imports any pre-packaged commodity for sale, distribution, or delivery is required to register itself under the LM Act with the Director or Controller of Legal Metrology. This registration must be completed within 90 days of starting such activities. Depending on the nature of the activity undertaken by the Network Participant or seller, registration under the LM Act may be required.
1.2 Packaging and Labelling Requirements
Entities must ensure that all pre-packaged products display the following mandatory declarations in accordance with PC Rules:
Name and address of the manufacturer, packer, or importer
Common or generic name of the product
Net quantity (weight, measure, or number)
Maximum retail price (inclusive of all taxes)
Month and year of manufacture or packing
‘Best before’ or ‘Use by’ date must be mentioned where applicable
Consumer care contact details
Unit sale price (where applicable)
Country of origin
Mandatory indicators for vegetarian/non-vegetarian origin (where applicable)
Special labelling for GM foods (where applicable)
Where the sizes of the commodity contained in the package are relevant, the dimensions of the commodity contained in the package and if the dimensions of the different pieces are different, the dimensions of each such different piece
Notably, e-commerce entities must ensure that all mandatory declarations (except the month and year of manufacture or packing) are displayed on the digital or electronic platform used for selling the goods. As per the PC Rules, in marketplace models, the responsibility for the correctness of these declarations lies with the manufacturer, seller, dealer, or importer, as applicable.
The packaging and labelling requirements provided under Annexure B (under the head “Packaging and Labelling Requirements”) shall be complied with. However, for the purpose of packages containing food articles, further reference shall be made to Para 1.1 and 1.2 of Annexure B.
1.3 Other Compliances under Legal Metrology (Packaged Commodities) Rules 2011 (“PC Rules”)
Other compliance under PC Rules namely, declaration on container type commodities, general guidelines, manner of declaration, and maximum permissible errors on net quantities declared by weight or volume have been discussed in Annexure B.
B. BIS Act
The Bureau of Indian Standards Act, 2016 (“BIS Act”) empowers the Bureau of Indian Standards (“BIS”) to regulate the quality and standards of products distributed in the Indian market. While BIS certification is generally voluntary, the Central Government has made it mandatory for certain products based on considerations such as public interest, health and safety of humans, animals, or plants, environmental protection, prevention of unfair trade practices, and national security.
For such products, the use of the Standard Mark is compulsory and must be obtained under a licence or Certificate of Conformity (CoC) from BIS. The list of products under compulsory certification is available on the BIS website:
🔗 https://www.bis.gov.in/product-certification/products-under-compulsory-certification/#
Please refer to 1.4 of Annexure C to check the applicability of BIS laws on the subject product(s). Additionally, the labelling requirements have been provided in Annexure C (under the heading “Labelling requirements”).
C. Import and Export Laws
3.1 Registration
Every importer and / or exporter is required to obtain Certificate of Importer-Exporter Code (“IEC”) as discussed in Annexure D.
D. Consumer Protection Act and the Rules/Guidelines Issued Thereunder
4.1 Compliances under E-Commerce Rules
All e-commerce entities must comply with the E-Commerce Rules, including:
Nodal Officer: Appoint a nodal officer or alternate senior functionary residing in India.
Information Disclosure: Clearly and prominently display on its platform:
o Legal Name
o Principal and branch addresses
o Name and details of the website
o Contract information of customer care and grievance officer.
Grievance Redressal: Set up a grievance mechanism and appoint a grievance officer. Display their name, contact, and designation of such officer on its platform. Grievances must be acknowledged in 48 hours and resolved within 1 month.
Imported Goods: If offering imported goods/services, mention importer details.
Cancellation Charges: No cancellation charges unless the platform bears similar charges if they cancel the purchase order unilaterally.
Consent: Obtain a consumer’s consent for any purchase through explicit and affirmative action.
Refunds: Process refunds as prescribed under applicable law.
Obligations for Marketplace E-Commerce Entities
Marketplace entities must additionally:
Seller Undertaking: Require sellers through an undertaking to ensure that descriptions, images, and other content pertaining to goods or services on their platform is accurate and corresponds directly with features of such goods or services.
Differentiated Treatment: Include in terms and conditions, a description of any differentiated treatment which it gives or might give between goods or services or sellers of the same category.
Disclosures: Display all required information including that may be required by consumers to make informed choices: contractual terms, mandatory notices, expiry, seller/importer details, country of origin, return/exchange/refund/delivery terms, warranties, payment modes, grievance mechanism.
Seller Details: Show seller name, registration status, address, customer care number, and ratings, if any.
Complaint Tracking: Provide ticket numbers to track complaints.
Ranking Parameters: Explain in plain language the key parameters affecting product/seller rankings.
Obligations for Inventory E-Commerce Entities
Inventory-based entities must:
No False Representation: Not misrepresent themselves as consumers.
Return and Refunds: Must not deny return, refund, or cancellation if goods/services are defective, deficient, spurious, or delivered late.
Disclosures: Same disclosure obligations as marketplaces.
Price Transparency: Show total price as a single figure, with breakup and applicable taxes.
Complaint Tracking: Provide ticket numbers for consumer complaints that enables consumers to track status of their complaint.
Obligations for Sellers on Marketplaces
Sellers on marketplaces must:
No Fake Reviews: Not falsely pose as consumers or post fake reviews.
Return and Refunds: Must not deny return, refund, or cancellation for defective, deficient, spurious, or delayed goods/services.
Written Contract: Must have a prior written contract with the platform and share details (name, address, GSTIN, PAN, website).
Grievance Officer: Appoint and display grievance officer's name and contact. Acknowledge complaints in 48 hours, resolve within 1 month.
Disclosures: Display all legally required info (e.g., expiry date, seller/importer details, country of origin, return/exchange/delivery terms, warranties).
Price Transparency: Show total price and breakup with all charges and taxes.
Grievance Officer Info: Display name, contact number, and designation.
Annexure E details compliances required under the E-Commerce Rules.
4.2 Guidelines on Misleading Advertisements
As per the Guidelines, advertisement is valid and not misleading if it:
Is truthful and honest in its representation.
Does not exaggerate the product’s performance, accuracy, scientific basis, or usefulness.
Does not mislead by presenting legal consumer rights as unique benefits offered by the advertiser.
Does not claim universal acceptance of a claim where significant scientific or expert disagreement exists.
Does not exploit fear, i.e., doesn’t suggest that personal or family safety is at risk if the product is not purchased.
Does not mislead by citing publications or sources that haven’t been independently verified.
Complies with all applicable sector-specific laws and regulations.
In addition, the Guidelines also details conditions for bait advertisements, surrogate advertisements, free claims advertisements, and child targeted advertisements among others.
4.3 Guidelines on Dark Patterns
Please refer to Annexure F for the compliances to be followed under these guidelines by an entity advertising goods or services offered by it to consumers. The Guidelines are available here:
🔗 https://consumeraffairs.nic.in/acts-and-rules/consumer-protection
An entity advertising goods or services offered by it to consumers must comply with the Guidelines on Dark Patterns. The Guidelines defines Dark Patterns to mean any practices or deceptive design pattern using user interface or user experience interactions on any platform that is designed to mislead or trick users to do something they originally did not intend or want to do, by subverting or impairing the consumer autonomy, decision making or choice, amounting to misleading advertisement or unfair trade practice or violation of consumer rights. The Guidelines prohibits any person, including any platform, from engaging in any dark pattern practice.
🔗 https://consumeraffairs.nic.in/acts-and-rules/consumer-protection
4.4 Greenwashing Guidelines
Please refer to Annexure G for the compliances to be followed under these guidelines by an entity advertising goods or services offered by it to consumers.
E. Data Protection Laws
The IT Act read with the SPDI Rules are the primary legislations in India governing data privacy and protection on a sector-neutral basis. To the extent the NPs will collect/handle personal data falling under the category of SPDI, it is required to be compliant with the obligations specified under the SPDI Rules. A summary of the key obligations under the SPDI Rules of an entity, inter alia, for collecting, processing and transferring of SPDI, has been set out in Annexure H.
Please note that once the DPDP Act is enforced, all entities collecting, handling, or processing personal data will be required to comply with the obligations prescribed under the DPDP Act.
F. Compliance with IT Rules
An intermediary as defined under Section 2(w) of the IT Act, with respect to an electronic record, means any person who “receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes”. To the extent, the NP qualifies as an intermediary, it will be required to implement the due diligence obligations (depending on the category of intermediary) as has been set out in Annexure I, if it seeks to avail the exemption from liability in accordance with Section 79 of the IT Act.
G. Compliance with Pesticides Laws
7.1 Registration Requirements
To manufacture or import the pesticides, the manufacturer and importers are required to obtain a registration for such pesticide (including the pesticide) from the Registration Committee. The registration requirements have been provided under Annexure N (under the head “Registration and Licensing”).
7.2 Licensing Requirements
To manufacture or to sell, stock or exhibit for sale or distribute any pesticide, the license shall be obtained from the licensing officer. The licensing requirements have been provided under Annexure N (under the head “Registration and Licensing”).
7.3 Packaging and Labelling Requirements
The Pesticides Laws provides that every package of pesticides shall adhere to the packaging and labelling requirements that are discussed under Annexure N (under the head “Packaging and Labelling Requirements”).
7.4 Importing Requirements
In addition to the general import requirements discussed above, the import of pesticides is allowed via specific customs ports that are listed under Annexure N (under the head “Import of Pesticides”).
7.5 Sale through E-commerce
In order to sell the pesticides through e-commerce, the licensee shall comply with the provisions of Pesticides Laws and Consumer Protection (E-commerce) Rules, 2020. Notably, the e-commerce operator before engaging the licensee for sale of pesticides, shall verify the validity of the license issued to it. Please refer Annexure N for further details (under the head “Sale through e-commerce”).
7.6 Storage and Disposal of Pesticides
The pesticides shall be stored in accordance with the conditions prescribed under Pesticides Laws. Further, the disposal of surplus material, expired pesticides and packages shall be in compliance with the Pesticides laws. The standards pertaining to storage and manner of disposal along with other necessary requirements have been discussed under Annexure N (under the head “Other compliance”).
H. Compliance with Fertiliser Laws
8.1 Registration of Industrial Dealer and Authorisation Letter for Dealers
Dealer: Any person including manufacturer, importer, pool handling agency, wholesaler and a retail dealer, selling fertilisers is required to obtain the authorisation letter from the Notified Authority.
Industrial Dealer: Every person intending to sell or offer to sell the fertilisers for industrial purposes i.e., for uses other than the fertilisation of soil and increasing productivity of crops, is required to obtain certificate of registration from the Controller.
The authorisation and registration requirements have been provided under Annexure O (under the head “Authorisation or Registration of Dealers”).
8.2 Certificate of Manufacture
Every person shall obtain the certificate of manufacture to carry on the business of preparing any mixture of fertilisers and special mixture of fertiliser. The said requirement has been provided under Annexure O (under the head “Certificate of Manufacture”).
8.3 Restrictions on Manufacture, Sale, etc. of Fertilisers
The Pesticides Laws prescribe certain restrictions on manufacture, sale, offer for sale, stock or exhibition for sale or distribution of fertilisers, including bio stimulants, customised fertilisers, and nano fertilisers. The specific restrictions for aforementioned categories of fertilisers are discussed in Annexure O (under the head “Restriction on manufacture, sale, etc., of fertilisers”).
8.4 Packaging and Labelling Requirements
The Fertilisers Laws prescribe packaging and labelling requirements for fertilisers that are required to be complied by the manufacturer, retail dealer, importer, etc. The specific packaging and labelling requirements are discussed in detail in Annexure O (under the head “Packaging and Labelling Requirements”).
8.5 Compliance with FMC Order
The FMC Order prescribes the manner in which the fertilisers shall be transported from one state to another. The requirements for transportation of fertilisers are discussed in Annexure O (under the head “Compliance under FMC Order”).
8.6 Import and Export of Fertilisers
In addition to the general import and export requirements discussed above, the import and export of fertilisers are subject to specific condition prescribed under import and export policy. The specific policy conditions have been discussed in Annexure O (under the head “Import and Export”).
8.7 Disposal of Fertiliser and Other Compliances
The fertilisers shall be stored and disposed of in accordance with the conditions prescribed under Fertilisers Laws. The standards pertaining to conditions of storage, manner of disposal and other necessary requirements are discussed in Annexure O (under the head “Other compliance”).
I. Compliances for Selling, Storing and Distributing Seeds
9.1 Licensing
Any person willing to carry on the business of selling, exporting or importing seeds at any place shall do so upon obtaining license from the licensing authority in accordance with the Seeds (Control) Order 1983 and in accordance with the terms and conditions of licence granted.
9.2 Certification
Any person selling, keeping for sale, offering to sell, bartering or otherwise supplying any seed of any notified kind or variety may (“Notified Seeds”), if he desires to have such seed certified by the certification agency, apply to the certification agency for the grant of a certificate for the purpose.
9.3 Restriction on Import of Notified Seeds
No person shall, for the purpose of sowing or planting by any person (including himself), export or import or cause to be exported or imported any seed of any notified kind or variety, unless—
(a) it conforms to the minimum limits of germination and purity specified for that seed under Section 6 of the Seeds Act; and
(b) its container bears, in the prescribed manner, the mark or label with the correct particulars thereof specified for that seed under Section 6 of the Seeds Act.
9.4 Marking and Labelling
When seed of a Notified Seed is offered for sale, each container shall be marked or labelled in the manner hereinafter specified. The person whose name appears on the mark or label shall be responsible for the accuracy of the information required to appear on the mark or label so long as seed is contained in the unopened original container. The details of marking and labelling of the container shall be as per the Seeds Rules 1968, an overview of which are discussed in Annexure P below.
J. Compliances under State-Specific Animal Feeds Acts
10.1 Overview
Various states in India have enacted their own specific regulations and acts to govern the quality, production, and sale of animal feeds within their respective jurisdictions. These state-specific animal feeds acts aim to ensure the availability of safe and nutritious feed for livestock, thereby promoting the health and productivity of animals. The acts typically provide guidelines for the registration and licensing of manufacturers, packers, and distributors of animal feeds, as well as standards for the composition, packaging, and labelling of these products.