The E-Commerce Bill, 2080 (2023 AD), which Nepal just introduced, aims to safeguard consumers and regulate the rapidly growing online trading industry. The swift expansion of e-commerce in Nepal, which had not yet had a specific legal framework, is addressed by this legislative action.
Important E-Commerce Bill Provisions:
Registration and platform creation are required:
- In order to carry out online transactions, e-commerce companies must set up electronic platforms, including websites or mobile applications.
- The government’s e-commerce portal requires these companies to register, supplying information such as their firm name, address, registration number, VAT and PAN numbers, and contact data. Current e-commerce businesses have three months from the Act’s start date to meet this registration requirement.
Measures to Protect Consumers:
- The name, nature, design, trademark, weight, final price with tax, additional fees (including shipping), delivery time, and customer reviews or ratings are just a few of the detailed information that e-commerce platforms are required to make explicit.
- If goods or services don’t live up to expectations, customers have the right to return them and get a complete refund.
Penalties for Failure to Comply:
- Fines for engaging in e-commerce without setting up an electronic platform or conducting business without the required registration can range from NPR 10,000 to NPR 50,000.
- Depending on the seriousness of the incident, more serious infractions, like not fulfilling commitments or violating consumer rights, can result in fines of NPR 300,000 to NPR 500,000 and jail time of six months to three years.
Privacy and Confidentiality of Data:
- Businesses engaged in e-commerce are required to protect the privacy of the personal data of those who deal with them. They are not allowed to use such information for purposes other than those specified in the contract or to disclose it without permission.
The legislative process and the responses of stakeholders:
Industry Minister Ramesh Rijal introduced the law in the National Assembly on June 27, 2023, and the House of Representatives unanimously approved it on February 19, 2025.
The E-Commerce Bill’s introduction has drawn praise for addressing the need for regulation in Nepal’s online economy, but it has also drawn criticism. The sanctions, according to some stakeholders, are too severe and can discourage entrepreneurship. The possible effects of the law on small and medium-sized businesses (SMEs) and the need for more precise differentiation between different e-commerce models, such as business-to-consumer (B2C) and consumer-to-consumer (C2C) platforms, have drawn criticism.
In summary:
One important milestone in Nepal’s attempts to control its digital economy is the passage of the E-Commerce Bill, 2080. The act seeks to create a reliable e-commerce environment that safeguards customers and encourages ethical corporate activities by laying out precise rules and enforcing sanctions for noncompliance. However, resolving the concerns of different stakeholders and making sure that the regulations foster the expansion of Nepal’s digital economy without impeding innovation are necessary for its successful implementation.
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