5 Indian eCommerce laws you should know about for your DTC brand

ecommerce-laws
(Last Updated On: December 29, 2021)

It’s always good to have basic legal knowledge when running an online business. Here are some eCommerce laws that you need to know while running your DTC brand.

On pricing

Pricing your product is upto you. But you will have to display the maximum retail price (MRP) if you sell packaged products on your online store. The ministry of consumer affairs implemented the Packaged Commodity Amendment (2018) which mandates the display of MRP for all packaged commodities.

If you are an independent brand that sells packaged products, make sure you follow this eCommerce law. Showing accurate pricing details on products ensures transparency and repeat customers.

On tax and accounting

An eCommerce business has to pay different kind of taxes – central, state and local. After the introduction of GST in 2017, tax and accounting rules have changed.

To understand and pay your tax liability, you need to do book keeping for your online business. Also, keeping accounts is a legal requirement in India.

On labelling and packaging

Legal Metrology Rules, 2011 states that the online platform must display requisite information about the commodities on display. This means that product details must be accurate. Make sure you write clear details about the products’ dimensions, weight, and other features on the product page.

Having a clear product description is not only a legal requirement, but also influences buying decisions.

Here’s an example of a good product description on an online store:

product description for ecommerce
Source: Homeculture online store

Any eCommerce entity should also comply with laws related to packaging set by Legal Metrology Act, 2009.

On sales and shipping

The Sale of Goods Act covers what the sales and shipping policy of eCommerce businesses should contain.

Additionally, such as the warranties, conditions, and the transfer of property in goods. You must also include policies on shipping and return policies.

On contracts

All of the above points thrive on contracts. You are signing an agreement where both parties are agreeing to a certain condition. Sometimes, if not communicated rightly, agreements can quickly turn into disagreements and result in a dispute.

There are several contractual and dispute resolution laws that can help you protect your business and run it smoothly.

Learn about legal matters for your business and how to apply them

Here’s a free Mojoversity course for you to learn more about eCommerce laws and how to execute it easily. We collaborated with LegalWiz, to help businesses get acquainted with expected day-to-day interaction with business law.

Enrol for free and get started on your business!


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