Consumer Affairs Authority enforces comprehensive e-commerce guidelines

• Sets forth a series of provisions aimed at ensuring fair business, advertising and marketing practices in e-commerce
• Aims to elevate consumer confidence in burgeoning e-commerce sector, ultimately contributing to growth and sustainability of sector

Consumer Affairs Authority Chairman Shantha Niriella has invoked statutory powers outlined in the Consumer Affairs Authority Act No. 9 of 2003 for e-commerce entities and platform operators involved in the marketing and sale of goods to strengthen consumer rights in the digital marketplace.

The directive, presented in a comprehensive schedule, sets forth a series of provisions aimed at ensuring fair business, advertising and marketing practices within the digital marketplace. Among the stipulations are requirements for transparent representation, disclosure of special offers and the prohibition of deceptive pricing tactics.

By establishing clear guidelines, the Consumer Affairs Authority aims to elevate consumer confidence in the burgeoning e-commerce sector, fostering trust and accountability within the digital marketplace.

As per the new regulation, at the pre-purchase stage, e-commerce entities and platform operators must provide consumers with options to manage unsolicited commercial communications and offer clear order summaries before confirmation. Additionally, a transparent and equitable rating and review system, coupled with transparent business information, must be maintained.

During the purchase stage, e-commerce entities and platform operators are required to uphold transparency in transactional terms, ensuring that consumers are fully informed of relevant conditions. This includes furnishing detailed records of transactions and issuing receipts with comprehensive information regarding pricing, charges and other essential details.

Furthermore, the directive addresses aspects of payment security, offering mechanisms in line with payment-related risks. Consumers must also be allowed to withdraw from confirmed transactions when appropriate.

In the post-purchase stage, e-commerce entities and platform operators are expected to adhere to warranties based on principles of ‘fair value for money spent’. Safety requirements for products must be disclosed, and mechanisms for addressing potential safety issues must be in place.

The new policy development signifies a proactive step towards aligning e-commerce practices with consumer protection standards and ultimately contributing to the growth and sustainability of the e-commerce sector.