Is it mandatory for e-commerce sellers to display certifications, MRP, and warranty information online?

With the rise of online shopping, consumers expect the same level of transparency and information that they would receive in physical stores. One of the critical pieces of information consumers rely on when shopping online is the Maximum Retail Price (MRP), product certifications, and warranty details. The absence of this information can often lead to confusion, poor consumer experience, and even fraudulent activities.

But are e-commerce sellers legally required to display these details in India? This article examines whether Indian laws and regulations mandate the display of certifications, MRP, and warranty information for products sold online, and the implications for consumers and e-commerce platforms.

Legal Framework for Product Information in E-Commerce

• Consumer Protection (E-Commerce) Rules, 2020: Under the Consumer Protection (E-Commerce) Rules, 2020, there are specific guidelines that govern the way e-commerce platforms and sellers must display information to consumers.
• These rules aim to ensure transparency, consumer protection, and fair business practices in the digital marketplace. They apply to both direct sellers (those selling directly on their websites or apps) and marketplace platforms (like Amazon, Flipkart, etc.).
• Mandatory Information on Product Listings: E-commerce sellers are required to display certain essential information about the products they sell, including:
• Clear product description (detailing key features, uses, etc.).
• Pricing information: This includes the MRP and any discounted prices (to avoid misleading consumers).
• Certifications (where applicable) such as ISI, FSSAI, or any other regulatory approvals for specific categories of products.
• Warranty/Guarantee details: If the product is covered under a warranty, this information must be displayed in a clear and accessible manner.
• Section 4 of the E-Commerce Rules mandates that platforms must ensure these details are accessible to consumers before the transaction is completed, to prevent any misleading or deceptive practices.

The Legal Requirements for MRP Display

• According to the Legal Metrology (Packaged Commodities) Rules, 2011, sellers must display the MRP of products on all goods sold in India, including those sold online.
• MRP must be clearly visible and cannot be altered. If a product is sold at a discount, the discounted price must be clearly mentioned along with the MRP.
• These rules apply to all retail products, including food, electronics, and clothing, regardless of whether the transaction happens in a physical store or online.
• Failing to display MRP correctly can lead to penalties under the Legal Metrology Act, 2009.

The Consumer Protection Act, 2019

• Under the Consumer Protection Act, 2019, e-commerce sellers are legally bound to ensure that the information provided to consumers is accurate, clear, and not misleading.
• If an online seller fails to disclose essential details like MRP, warranty, or certifications, it could be viewed as misleading advertising or unfair trade practices, which are prohibited under the law.
• Section 2(1)(r) of the Act prohibits unfair trade practices, and Section 17 deals with misleading advertisements.
• If an online seller does not comply with these regulations, penalties can be imposed, including fines or compensation to consumers.

The Food Safety and Standards Authority of India (FSSAI) Regulations (for Food Products)

• For food-related products, the FSSAI mandates that certain certifications and details about the product's manufacture, expiry date, batch number, and MRP must be disclosed.
• Sellers of food products are legally required to display the FSSAI logo and license number on the product page for consumer protection.

Mandatory Information for Sellers

• Certifications: Certifications are required for certain types of products like organic products, food and beverages, medicines, and electronic goods.
• For instance, electronic products must display the BIS (Bureau of Indian Standards) certification if applicable. Food products must carry the FSSAI certification. Sellers of medicines must display the drug license.
• These certifications help ensure that the products sold are safe, authentic, and adhere to the required quality standards.

Maximum Retail Price (MRP)

• Under the Legal Metrology (Packaged Commodities) Rules, all products sold online in India must clearly display the MRP.
• This is to prevent misleading pricing, especially when discounts are applied. The MRP must be displayed clearly on the product listing, and it must be visible before the consumer proceeds to checkout.
• Failure to display MRP or to show a discounted price alongside the MRP can lead to legal action under the Legal Metrology Act.

Warranty Information

• Sellers must provide clear warranty or guarantee details for products that come with such protections.
• For example, electronic goods typically come with manufacturer warranties, and this information must be clearly displayed on the product page. If a seller does not disclose warranty information, they may be in violation of consumer rights under the Consumer Protection Act.
• Additionally, the terms of the warranty (duration, what it covers, how to claim) must be detailed, so consumers know their rights.

Consequences of Non-Compliance

• Penalties under the Consumer Protection Act (2019): If e-commerce sellers fail to provide MRP, certifications, or warranty details, consumers can file complaints with the Consumer Protection Authority.
• E-commerce platforms may face penalties for not ensuring transparency in product listings, and consumers may also seek compensation if they are misled.
• Legal Metrology Act Violations: Non-display of MRP or incorrect display can lead to penalties under the Legal Metrology (Packaged Commodities) Rules, including fines or product seizure.
• Consumer Complaints: Misleading or incomplete product details can also result in negative reviews, loss of consumer trust, and potential legal consequences. A consumer may also file a case with the Consumer Forum if they feel deceived or misled.

Example Case

• An online platform sells smartphones and does not clearly display the warranty information for a product, nor does it include the manufacturer’s certification for authenticity. A consumer purchases the phone and later finds out that the phone is defective and does not come with the promised one-year warranty.
• Steps Taken:
• The consumer contacts the platform, asking for a refund or warranty service, but the platform does not provide any support.
• The consumer files a complaint with the Consumer Forum for misleading information and non-disclosure of warranty terms.
• The Consumer Forum orders the platform to refund the consumer, and the platform is fined for failing to display the warranty information.

Conclusion

• Yes, it is mandatory for e-commerce sellers to display essential information such as MRP, certifications, and warranty details on their product listings in India. Failing to provide this information can lead to penalties under the Consumer Protection Act, 2019, and the Legal Metrology (Packaged Commodities) Rules, 2011. Consumers are entitled to accurate and transparent information about products, and sellers must comply with these regulations to avoid legal action and ensure a fair and transparent shopping experience.