The Directorate of National Consumer Rights’ Protection (DNCRP) has been taking initiatives to supervise the goods and services sector since 2010 to protect consumer interest. The existing laws however have no provisions to do anything about digital commerce fraud.
Consumers’ complaints regarding fraud in the digital commerce sector became a key issue in recent years.
To address this, the Cabinet Division recently recommended three years of jail, or a fine of not more than Tk 3 lakh or both for those who operate digital commerce business illegally without licence or registration.
Based on the recommendation, this new addition is going to be added in the amendment of the Consumer Rights Protection Act. This addition is being made to bring criminals under punishment in the field of digital commerce business.
Commerce ministry sources say the draft amendment is at a final stage, and it will be sent to the cabinet for approval soon.
The process of amending the Consumer Rights Protection Act has been going on for a long time. In the upcoming amendment, the issues related to digital commerce are now being included. Fifteen sections and sub-sections are to be added in the draft of the amended law, said sources.
As per the draft amendment, digital commerce businesses cannot operate without registration or licence.
Various individuals or organisations are conducting digital commerce business using different types of digital platforms without any geographical address, name, and communication medium.
Consumers are being cheated out of their money in terms of promised products, services. Monitoring and regulation of digital commerce businesses will be possible if they come under the purview of registration, expert hope.
The draft of the new addition states that the digital platform should contain technical specifications, description, size, and quantity of the goods and services.
If those are not disclosed, the digital platform owner or the seller can be punished with two-year jail or fined not exceeding Tk 1 lakh or both.
If any digital business platform conducts business without displaying Digital Business Identity (DBID) through the website and social media, they will be punished with 1 year imprisonment or a fine of Tk 1 lakh or both.
Failure to maintain and display, the price list of services will be subject to the same penalty.
The draft amendment to the law defines digital commerce as electronic or digital commerce, which is commercial activity or purchase of goods and services carried out using digital devices over the digital platforms.
If consumer rights are violated, the director general of the Directorate General of Consumer Rights Protection is given the power to determine and take remedial measures against it.
The director general can order the temporary closure of digital commerce establishments, digital platforms, factories, warehouses for activities against consumer rights.
If these crimes are committed, the director general, authorised officers and district magistrates can impose fines and/or cancel business licences, as per the amendment.
At the same time, the defective product can be replaced by the original product or the defective product can be returned to the buyer and can take administrative action related to delivery of promised goods or refund of payment by any digital platform.
According to E-Commerce Association of Bangladesh (E-CAB), it is possible to bring order to the country's e-commerce sector through the Consumer Rights and Competition Commission Act.
E-CAB President Shomi Kaiser said, “Theft means theft. No need to separate it by online or offline. Penalties are possible through the Consumer Rights Act. If necessary, the law should be amended.”
The e-commerce business is expanding rapidly in the country. In 2024, this trade is projected to reach Tk 3,000 crore. Along with the expansion of e-commerce, fraud is also on the rise, despite the commerce ministry’s efforts to take some initiatives to check fraud.
