E-commerce has its origin in foreign jurisdictions especially in developed nations like United States. These jurisdictions have proper laws and adequate infrastructure to cater the needs of e-commerce stakeholders. This has helped these stakeholders in not only complying with the laws of these jurisdictions but also in contributing towards the economy of these jurisdictions.
E-commerce in India is a totally different class. It has all the advantages of profit making and commercial viability but is neither regulated by any dedicated e-commerce law nor is it contributing towards the economic and social growth of India.
Legal provisions pertaining to foreign direct investment (FDI), foreign exchange management act (FEMA), national taxation laws, cyber law due diligence (PDF), cyber security due diligence, e-commerce due diligence, etc are openly ignored in India. In some instance, enforcement directorate (ED) has also initiated investigation against big e-commerce players like Myntra, Flipkart and many more e-commerce websites operating in India. Many stakeholders have also protested against the unfair trade practices and predatory pricing tactics of Indian e-commerce websites.
The matter has reached to the level of Indian government that has also promised to look into the matter and draft suitable e-commerce law of India, if required. The alternative approach that can be adopted by Indian government is to amend the Information Technology Act, 2000 (IT Act 2000) to accommodate e-commerce related issues.
We at Perry4Law believe that a dedicated e-commerce law of India is urgently required and Indian websites must be suitably regulated. Indian government must also formulate a techno legal framework to take care of complicated technology related legal issues in India. Amending the IT Act 2000 to accommodate e-commerce related issues is not a very good option in this regard and must be the last choice.