- A. Food Safety Laws
- B. LM Act
- C. BIS Act
- D. Import and Export Laws
- E. Consumer Protection Act and the Rules/Guidelines Issued Thereunder
- F. Data Protection Laws
- G. Compliance with IT Rules
- 2. Compliances for vegan products
- 3. Compliances for organic foods
- 4. Compliances for health supplements, nutraceuticals, food for special dietary use, food for special medical purpose, functional food and novel food
A. Food Safety Laws
Please note that the Food Safety Laws are not applicable to pet supplies. Accordingly, we have discussed the compliance requirements stipulated for groceries in the ensuing paragraphs.
1.1 Licensing Requirements
To commence or carry on the food business, both Buyer App and Seller on Marketplace Seller App (Marketplace seller app as well as Inventory Seller App) are required to obtain a license from the central authority. Sellers are also required to obtain a license from the central authority or the concerned state or union territory’s licensing authority, as the case maybe. More details on the licensing requirements have been provided under Annexure A (under the head “Licensing or Registration Requirements”).
The Guidelines for the operation of e-commerce FBOs under the FSS Act and Section I of the Food Safety and Standards (Licensing and Registration of Food Business) Amendment Regulation 2018 (“Amendment Regulations 2018”) provide for the following:
E-Commerce FBOs shall obtain central license, comply with the requirements prescribed under the Food Safety Laws and hygiene and manufacturing standards for licensed FBOs engaged in food services, including packaging and transportation.
The E-Commerce FBO must enter into agreements with the sellers, brand owners, or manufacturers onboarded by them. These agreements shall affirm that the said entities comply with the Food Safety Act, Rules, and Regulations.
The seller/ brand owner/ manufacturer shall ensure that legible and clear picture of the 'principal display panel' for pre-packed food products offered for sale to the consumer, is made available for viewing by the customers, excluding specific details such as batch number, expiry date, and MRP.
Any food article delivered to a consumer by E-Commerce FBO shall have a shelf life of at least 30 percent or 45 days remaining at the time of delivery.
1.2 Packaging Requirements
Food Safety and Standards (Packaging) Regulations, 2018 (“Packaging Regulations”) which provides for the packaging requirements to be adhered to by the relevant food business operator. The packaging requirements stipulated thereunder have been provided under Annexure A (under the head “Packaging Requirements”). The Packaging Regulations are applicable to the Buyer App and Marketplace App i.e., they shall contractually ensure with the seller that the commodity is in compliance with the specified requirements; the Inventory Seller App (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the inventory seller is not manufacturing or packing / labelling the commodity)) and Seller on the marketplace seller app (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the seller on the marketplace seller app is not manufacturing or packing / labelling the commodity)).
1.3 Labelling and Display Requirements
Every packaged food article shall be marked and labelled in accordance with the Labelling Regulations as provided under Annexure A (under the head “Labelling and Display Requirements”). Mandatory food information required under the Food Safety Act, Rules, and Regulations shall be provided to consumers without charging supplementary costs and must be available before the purchase is concluded. The above Labelling and Display Requirements are applicable to the Buyer App and Marketplace App i.e., they shall contractually ensure with the seller that the commodity is in compliance with the specified requirements; the Inventory Seller App (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the inventory seller is not manufacturing or packing / labelling the commodity)) and Seller on the marketplace seller app (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the seller on the marketplace seller app is not manufacturing or packing / labelling the commodity)).
Food Standards, Fortification & Additives: Every FBOs shall ensure compliance with the
(i) Standards & Additives: Must follow standards under the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011.
(ii) Fortification: Where applicable, food may be fortified to improve nutritional quality as per FSSAI Fortification Regulations, 2018.
(iii) Infant Nutrition: Products intended for infants must comply with the relevant Infant Nutrition Regulations as discussed under Annexure A (Infant Nutrition Requirements).
(iv) Contaminants and Residues: Food must not contain contaminants, toxins, or residues beyond limits set under the Food Safety and Standards (Containments, toxins and Residues) Regulations, 2011.
Furthermore, all the non-specified food articles or food ingredients shall be manufactured or imported on prior approval of the FSS in the manner prescribed under the Food Safety and Standards (Approval for Non-Specified Food and Food Ingredients) Regulations, 2017. In this regard, further reference may be made to the additional guidance documents available at https://fssai.gov.in/cms/non-specified-food.php.
1.4 Importing Requirements
To import the food articles, the food business operators/importer are required to obtain the import license under the Import Regulations. Compliances to import food articles have been provided under Annexure A (under the head “Importing Requirements”).
1.5 Prohibition and restrictions on sales
Some of the food articles are prohibited for sale or subjected to certain conditions for the purpose of sale. The Food Safety and Standards (Prohibitions and Restrictions on sales) Regulations, 2011 prescribe the specifications of such food articles which are prohibited and/or restricted. Such compliances with respect to the prohibited or restricted food articles sale shall be observed by the FBOs. These Regulations are applicable to the Buyer App and Marketplace App i.e., they shall contractually ensure with the seller that the commodity is in compliance with the specified requirements; the Inventory Seller App (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the inventory seller is not manufacturing or packing / labelling the commodity) and Seller on the marketplace seller app (Contractually ensure with the vendor / manufacturer that the commodity is in compliance with the specified requirements (where the seller on the marketplace seller app is not manufacturing or packing / labelling the commodity).
1.6 Food Recall Requirements
In case the food article is determined to be unsafe (as defined in Annexure A), the food business operators are required to recall such food article in the manner prescribed under the Food Recall Regulations. Compliances to recall food articles have been provided under Annexure A (under the head “Food Recall Requirements”). These Regulations are applicable to the Buyer App, Inventory Seller App, Marketplace App and Seller on Marketplace Seller App.
1.7 Advertising and Claims
All the FBOs and marketers are required to comply with the standards prescribed for advertising and claims (including the claims made on labels) under the Advertising Regulations. Compliances related to advertising and claims have been provided under Annexure A (under the head “Advertising and Claims”). These Regulations are applicable to the Buyer App, Inventory Seller App, Marketplace App and Seller on Marketplace Seller App.
B. LM Act
2.1 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.
2.2 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.
2.3 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.
C. 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”).
D. Import and Export Laws
4.1 Registration
Every importer and / or exporter is required to obtain Certificate of Importer-Exporter Code (“IEC”) as discussed in Annexure D.
E. Consumer Protection Act and the Rules/Guidelines Issued Thereunder
5.1 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.
5.2 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.
5.3 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
5.4 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.
F. 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.
G. 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.
2. Compliances for vegan products
In addition to the compliances mentioned in Section 1 above, please see below the broad compliances that sellers of vegan products are required to adhere:
A. Food Safety Laws
The compliance required under the Food Safety Act and Rules made thereunder for vegan foods have been discussed under Annexure A at para-F below. Any person intending to manufacture, pack, sell, offer for sale, market or otherwise distribute Vegan products shall comply with the Food Safety and Standards (Vegan Foods) Regulations, 2022. Key highlights of the Regulations are as follows:
Vegan foods must not undergo animal testing for safety, unless mandated by a regulatory authority.
Businesses must prevent contamination with non-vegan substances during all production and distribution stages by following good manufacturing practices.
Packaging must comply with Labelling Regulations and display a vegan logo approved by the Food Authority.
Imported vegan foods must be accompanied by a certificate from a recognised authority in the exporting country, in the prescribed format.
3. Compliances for organic foods
In addition to the compliances mentioned in Section 1 above, please see below the broad compliances that sellers of organic foods are required to adhere:
A. Food Safety Laws
1.1 The compliance required under the Food Safety Act and Rules made thereunder for organic foods have been discussed under Annexure A at para-E below.
4. Compliances for health supplements, nutraceuticals, food for special dietary use, food for special medical purpose, functional food and novel food
In addition to the compliances mentioned in Section 1 above, please see below the broad compliances that sellers of health supplements, nutraceuticals, food for special dietary use, food for special medical purpose, functional food and novel food are required to adhere:
A. Food Safety Laws
1.1 Licensing Requirements
(i) The manufacture, sale and distribution of the health supplements, nutraceuticals, food for special dietary use, food for special medical purpose, functional food and novel food is governed by the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016 (“Health Supplements and Others’ Regulations”) as discussed in Para G of Annexure A below.
(ii) The said Regulations stipulate provisions for nutrient claim on the label of the above stated products. Additionally, the Health Supplements and Others’ Regulations provide for the labelling requirements as discussed in Para G of Annexure A below.