No immunity for e-tailers over fake products sold online: Parliament panel

E-marketplaces have claimed that since inventory is not controlled by them, they should not be liable for any dispute with sellers

The Parliamentary Standing Committee on Commerce has dismissed e-commerce players’ argument that they have no control over the items sold on their platform, putting the onus on them to act as an intermediary in the resolution of complaints about substandard and counterfeit products on their platform.

Known as “fallback liability", the draft e-commerce rules released last year held e-commerce marketplace responsible if a seller on its platform failed to deliver the goods or services ordered by a consumer “due to negligent conduct, omission or commission of any act by such seller”, causing loss to the consumer.

This became a contentious