KATHMANDU, March 21: The government has announced penalties for business owners who sell goods and services online and write reviews or comments about the features and quality of their own products. This provision appears in the recently ratified E-Commerce Act, 2081 BS.
Section 15 (Responsibilities of businesses engaged in list-based electronic commerce) and Section 16 (Responsibilities of the seller) of the Act prohibit self-reviewing. Subsection (c) of Section 15 states, "The seller or any other person must not review, evaluate, or provide feedback regarding the quality and features of goods or services listed on a sales platform, either as themselves or as a disguised consumer."
Subsection (c) of Section 16 also includes a similar provision. It states, "The seller must not review, evaluate, or provide feedback on the quality of goods or services provided to an intermediary business for sale, either as themselves or as a disguised consumer."
The art of writing
The Act classifies both of these responsibilities as offenses under Sections 21 and 23 of Chapter 4. Those who commit or cause such offenses will face penalties ranging from a fine of Rs 50,000 to Rs 500,000, imprisonment for up to six months to three years, or both.
Offenses that can result in fines of up to Rs 500,000 and imprisonment for up to three years include several actions that businesses must avoid. These offenses include failing to comply with the terms of a warranty or guarantee for a product or service, discriminating between similar products or services offered by different sellers on an electronic platform, or giving preference to a specific seller's offerings. Businesses must also accept returns, exchanges, or refunds for products or services when they do not match the description or when requested by the buyer.
Additionally, businesses cannot review, evaluate, or comment on the quality or features of their own products, either personally or under a disguised consumer identity. Misleading advertisements that distort the actual features, usage, or details of a product or service are also prohibited.
Businesses must accept returns or provide refunds for products or services that were not delivered as advertised, were delivered late, or were defective. Failing to take responsibility for the authenticity of a product or service after making claims about it is also an offense. Additionally, engaging in unfair business practices, including when supplying products or services to an intermediary business, will result in penalties.