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Electronic Commerce Act, 2081

Certification

Date of Certification: 2081-12-3
Act No. 13 of the Year 2081

Preamble

To regulate electronic commerce conducted through information technology, ensuring it is organized and reliable, this Act has been enacted by the Federal Parliament.

Chapter 1: Preliminary

1. Short Title, Commencement, and Scope:

This Act shall be called the “Electronic Commerce Act, 2081.”
This Act shall come into effect from the first day of its certification.
This Act shall be applicable throughout Nepal and to all individuals or entities providing goods and services in Nepal through electronic commerce, regardless of their location.

2. Definitions:

Unless the subject or context otherwise requires, in this Act:

Consumer: Any individual or entity that consumes or uses goods or services under this Act.
Contract: A contract as defined under Section 7 of this Act.
Buyer: Any individual or entity purchasing goods or services under this Act, including their authorized representatives.
Delivery Provider: An individual, firm, company, or entity responsible for delivering goods as assigned by the seller.
Regulatory Authority: The authorized regulatory body under the prevailing consumer protection law.
Merchant (Seller): An individual, firm, company, or entity offering goods or services for sale through an intermediary.
Intermediary: A person, firm, company, or entity facilitating the sale of goods or services through an electronic platform.
Ministry: The Ministry of Industry, Commerce, and Supplies of Nepal.
Director General: The Director General of the concerned department.
Goods: Any tangible items that do not harm health, environment, or safety, including raw materials, colors, and fragrances used in their production.
Electronic Platform: A system that facilitates the transaction of goods and services via computers, mobile applications, websites, internet, intranet, and social media.
Electronic Commerce (E-Commerce): The process of buying and selling goods or services through an electronic platform.
Department: The Department of Commerce, Supplies, and Consumer Protection of Nepal.
Business Entity: A person, intermediary, or independent seller conducting electronic commerce.
Independent Seller: An entity producing goods or services and selling them directly through an electronic platform.
Services: This includes electricity, water supply, telecommunication, information technology, healthcare, education, consulting, transportation, tourism, entertainment, banking, insurance, legal, and auditing services.

Chapter 2: Conduct of Electronic Commerce

3. Permission for E-Commerce:

A registered business entity with legal permission to trade goods and services may conduct e-commerce under this Act.
However, goods or services restricted by Nepal’s law from online transactions shall not be bought or sold electronically.

4. Establishment of an E-Commerce Platform:

Every business entity engaged in e-commerce must establish an electronic platform.
Small and domestic businesses may use third-party electronic platforms for e-commerce.
The platform must provide details such as name, registration information, business address, tax number, contact details, and information about complaint handling.

5. Mandatory Registration:

After establishing an electronic platform, the business entity must register with the e-commerce portal maintained by the department.
Businesses operating before this Act must register within three months of its commencement.
The department shall issue a registration number within seven days of receiving the application.

6. Disclosure Requirements:

Sellers must provide clear information on their electronic platform, including:

Product/service specifications, quality, and dimensions.
Price, including applicable taxes.
Additional charges (if any) for delivery.
Safety precautions for product usage.
Delivery time and methods of payment.
Warranty and return policies.
Information about manufacturers and importers.

7. Formation of Contracts:

A contract formed electronically between a buyer and a seller is legally binding.
The seller must provide essential contract terms such as delivery, return, warranty, refund, and cancellation policies.

8. Payment for E-Commerce Transactions:

Payment shall be made either before or upon delivery, as agreed in the contract.
Payment shall be processed using legal banking or digital payment methods.

9. Delivery of Goods and Services:

The seller must deliver the goods or services as per the contract.
Buyers can pick up products from the seller’s sales center if preferred.
Any change in the delivery location or time must be mutually agreed upon.

10. Return of Goods and Services:

Buyers can return a product if it does not match the description provided.
The seller must accept returns without imposing additional conditions.
Buyers may request a replacement or refund if they refuse a substitute product.

11. Import and Export of E-Commerce Goods:

Business entities may import goods for e-commerce in compliance with Nepal’s laws.
Selling goods internationally via an e-commerce platform must adhere to legal payment settlement procedures.

12. Confidentiality of Personal Data:

Personal information of consumers must be kept confidential.
Such information shall not be disclosed or used without consent, except under legal obligations.

Chapter 3: Responsibilities in E-Commerce

13. Responsibilities of Intermediaries:

Provide clear and accurate product information.
Maintain tax compliance and financial records.
Ensure warranty and return policies are honored.
Prevent fraudulent or misleading advertisements.

14. Responsibilities of Independent Sellers:

Provide accurate and accessible product descriptions.
Prevent fake reviews and misleading advertisements.
Ensure timely delivery and fulfillment of warranty obligations.

15. Responsibilities of Buyers:

Buyers must comply with the contract.
Buyers must not engage in fraudulent activities.
Buyers must verify the received product and report complaints promptly.

16. Responsibilities of Delivery Service Providers:

Deliver goods within the agreed time and location.
Enter into separate contracts with sellers if necessary.
Comply with consumer protection regulations.

Chapter 4: Violations and Penalties

17. Offenses:

A business entity shall be considered to have violated this Act if it:

Operates an e-commerce business without registration.
Provides misleading information about products/services.
Fails to comply with intermediary or seller responsibilities.

18. Fines and Penalties:

Fines for minor violations range from NPR 20,000 to NPR 100,000.
Severe violations may result in fines up to NPR 500,000 or imprisonment for up to three years.

19. Investigation and Legal Action:

Regulatory authorities shall investigate violations.
Cases shall be filed in consumer protection courts or district courts where applicable.

Chapter 5: Miscellaneous

20. Monitoring and Inspection:

The department shall monitor e-commerce activities.
The government may issue necessary directives for compliance.

21. Filing Complaints:

Any individual may report violations to the Director General or regulatory authority.
Anonymous complaints shall be allowed, and necessary investigations shall be conducted.