KATHMANDU, JULY 23
Member of National Assembly Bimala Rai Paudyal has moved an amendment proposal against E-commerce Bill being considered by the Upper House of the Parliament proposing to remove the provision that imposes jail term for trading on digital platform without being listed, for failing to register the platform, and for failing to ensure guarantee and warranty for the sold services and goods.
Paudyal said there were already criminal laws dealing with crimes and there was no need for criminal prosecution for failing to meet any procedural obligation under e-commerce laws. "The requirement for guarantee and warranty may apply when a producer directly sells goods to customers using a digital platform but for a platform like Daraz.com.np, which only provides a platform for buyer and seller, such obligation cannot be justifiable," she added. Paudyal said Nepalis were new to the world of e-commerce and if such strict penal provisions were introduced in a new law, it would harm the business sector because many traders would not venture into the new world of trade due to fear of jail term. "Business law should encourage business people and not unnecessarily deter them," she added.
Advocate Santosh Sigdel, executive director of Digital Rights Nepal told THT that the E-Commerce Bill proposal to impose jail term for failing to meet procedural obligations was wrong. The bill proposes to impose jail term not exceeding three years or fine not exceeding 300,000 or both. The bill proposes jail term if any trader who uses digital platform to do business, fails to ensure warranty, guarantee for the sold goods, creates a digital platform and trades without being listed. Sigdel said while it would be okay if the bill allowed a consumer to seek compensation or make responsible parties liable for pecuniary damages for faulty goods and services sold on digital platforms, making it a criminal offence is not justifiable. If this bill is passed by the Parliament with the provision of jail term, many existing traders who use digital platforms to do their business may leave the platform, let alone new traders joining the fast-growing e-platform.
Sigdel said requiring the digital platform user to get the platform registered might create hurdles for common people. "The proposed provisions are quite restrictive and deterrent for SMEs, budding entrepreneurs and start-ups, and they may find these procedural requirements very cumbersome,"
Sigdel said and added that the burdensome process could lead to a situation where only resourceful and tech-savvy people could remain in e-commerce.
The bill, registered at the National Assembly on June 27, requires everybody who trades using e-platform to be registered with the concerned body with all the details of their address.
The e-traders are required to have information related to their business, including the business's name, address, registration number and head office, as well as details regarding any branches.
E-traders must also keep the details of their transaction for at least six years.
A version of this article appears in the print on July 24, 2023, of The Himalayan Times.
