Centre to ensure safeguards to prevent data misuse, according to draft e-commerce policy

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The Department for Promotion of Industry and Internal Trade is probably going to quickly come out with a draft ecommerce policy that lays down the rules for data utilization in industrial growth. It goals to put in place safeguards to prevent misuse and entry of data by unauthorised individuals, particularly in areas the place such norms don’t exist. Such safeguards could embody regulating cross-border movement of data pertaining to Indians and transactions happening in India.

It can also mandate adequacy audits by Indian companies. Various departments met on Saturday to talk about the draft policy. “There were discussions on various points on data, counterfeits and exports,” stated an official, with out sharing any timeframe for the ultimate policy. “We are trying to finish these discussions as early as possible to come out with a common acceptable draft which will be discussed internally also.” The division stated within the draft: “The government acknowledges the importance of data as an asset and the need to use data emanating from India for Indian entities first. The government is in the process of developing regulations for personal and non-personal data.”

A draft in July final 12 months had proposed the organising of a regulator, an ecommerce legislation and periodic audit of firms that retailer or mirror Indian customers’ data abroad. It additionally stated any data the federal government asks for ought to be shared inside 72 hours or the entities involved may have to pay a penalty. The newest draft requires streamlining of regulatory processes to ease the burden of compliance for actions associated to ecommerce and laws for data that may present for a sharing mechanism.

The new draft policy covers all modes of ecommerce — stock, market and hybrid mannequin. An ecommerce operator in market or hybrid mode shall handle its relationship with all sellers impartially. Violation of safeguards shall entice heavy penalties, it stated. They companies involved will measure ecommerce actions akin to sale, import and grievance redressal in a periodic method. There shall be conformity evaluation procedures for items and providers. Ecommerce operators should carry out clear low cost insurance policies. Consumers have a proper to be made conscious of all related particulars concerning the items and providers supplied on the market, together with nation of origin and worth addition in India, the policy stated. The legal responsibility for counterfeit merchandise shall be with the ecommerce entity and the vendor.

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