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RIGHTING THE DIGITAL MARKETPLACE: STAKEHOLDERS’ SAY
Bangladesh’s e-commerce sector has seen a lot of turbulence in the last couple of months following findings of a Bangladesh Bank inspection that unearthed a massive asset-liability mismatch of Evaly. The number of complaints against rogue platforms also surged. Now, the commerce ministry plans to frame a new law to regulate the budding industry. Legal experts and consumers welcome the move while e-commerce platforms oppose it. The Daily Star’s Mahmudul Hasan writes
Consumers, experts back new law
Although industry people do not want a new law or regulatory agency, some legal experts and a consumer rights body said those were necessary to oversee the industry now plagued with scams and controversies and protect the interests of stakeholders, including merchants.
“A group is advocating that it is possible to regulate e-commerce keeping the existing National Digital Commerce Policy-2018 in place or amending it,” said Mohammad Golam Sarwar, an assistant professor of law at the University of Dhaka.
“However I think there should be a separate act to address the current situation in the sector,” he added.
The rules in the digital commerce policy have no binding effect and no enforceability, and if anyone violates the directions, they will not be punished. Even a recently issued guideline under the policy has no legal remedy.
So in the context of Bangladesh, it is challenging to implement a policy that cannot ensure punishment for violations.
Secondly, a comprehensive law contains a proper objective and a new law would address the nature and dynamics of the e-commerce sector.
And to achieve the objective, it is important to have an administrative mechanism and a judicial mechanism, which is not possible without an act.
“Some say amending the consumer protection act is the solution. But we have to remember that the Directorate of National Consumer Rights Protection’s pecuniary jurisdiction is very meagre,” Sarwar said.
New law, regulatory body would impede growth
Say industry people
A new law with numerous provisions will thwart the expansion of e-commerce in Bangladesh, according to industry operators.
Instead, ensuring proper enforcement of existing laws and introducing strong fraud control measures are adequate to ensure healthy growth and discipline in the sector, which registered an average annual growth rate of about 50 per cent in the last five years.
Entrepreneurs of e-commerce demanded strengthening the Directorate of National Consumer Rights Protection (DNCRP) and Bangladesh Competition Commission to monitor and facilitate growth of e-commerce.
They also urged for proper vigilance from Bangladesh Bank, Bangladesh Financial Intelligence Unit (BFIU) and the commerce ministry.
“If these institutions and related laws are properly implemented, the government will be able to contain fraud in the future,” said AKM Fahim Mashroor, chief executive officer of bdjobs.com and ajkerdeal.com.
The DNCRP is the prime resort for customers to get remedies for any issues but it has not taken any stern action against fraudulent platforms, especially when it comes to Evaly, which has over 8,000 complaints filed against it, he added.
These views come in the wake of a string of e-commerce scams unfolding over the last couple of months amidst an outcry from customers over digital commerce companies not providing refunds for failing to deliver products.
Merchants are also complaining of non-payment of dues by e-commerce firms.
What India is doing
India too has been facing widespread fraudulence involving e-commerce in recent years.
It prompted its government to formulate a Consumer Protection (E-Commerce) Rules, 2020 under the consumer protection act to thwart dubious trade practices and protect consumers’ interests and rights in e-commerce.
Some of the act’s provisions are very beneficial to customers.
This includes a mandatory appointment of a consumer grievance redress officer and a nodal contact person or an alternative senior appointed official with contact details.
Two other sections are for acknowledging buyers’ grievances within 48 hours of receipt with a ticket number and resolving complaints a month from receipt of the complaint.
As widespread cheating and unfair trade practices in the e-commerce ecosystem continued during the pandemic, the government in June proposed a series of amendments to the rules, including a ban on mis-selling and fraudulent flash sales on e-commerce platforms.
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