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.