Safeguards to prevent data misuse by unauthorized persons: Draft e-comm policy

NEW DELHI, Mar 13: The Government would lay down principles for usage of data for the development of any industry, where such norms do not already exist, and put in place adequate safeguards to prevent misuse and access of data by unauthorized persons, according to a draft national e-commerce policy.
The Government is in the process of developing regulations for personal and non-personal data, the policy, which is under discussion, said.
The draft has stated that sharing of data for industrial development would be encouraged and regulations for data will be provided for the sharing mechanism.
“The Government shall lay down principles for usage of data for the purpose of development of any industry, e-commerce, consumer protection, national security, economic security and law enforcement including taxation where such principles do not already exist and put in place adequate safeguards to prevent misuse and access of data by unauthorized persons,” it said.
According to the draft, the government acknowledges the importance of data as an asset and needs to use data emanating from India for “Indian entities first”.
An inter-ministerial meeting, under the chairmanship of a top official of the department for promotion of industry and internal trade (DPIIT), was held on Saturday to deliberate upon this draft.
For free and informed choice, it said that e-commerce operators would have to ensure that algorithms used by them, are not biased and that no discrimination due to digitally induced biases is prevalent.
“Consumers have a right to be made aware of all relevant details about the goods and services offered for sale including country of origin, value addition in India, and any other such information which may be necessary for making an informed decision at the pre-purchase stage,” it said.
To promote fair competition, the draft said that e-commerce operators must ensure equal treatment of all sellers/vendors registered on their platforms and not adopt algorithms which result in prioritizing select vendors/sellers.
It said the operators have to bring out clear and transparent policies on discounts, including the basis of discount rates funded by platforms for different products/suppliers and implications of participation/ non-participation in discount schemes, so as to ensure fair and equal treatment.
“In the interest of the Indian consumer, and the local startup ecosystem, the government will aim to ensure that there are more service providers available, and that network effects do not lead to creation of digital monopolies misusing their dominant market position,” it added. (PTI)
Further, to eliminate counterfeit products from online platforms, it said the companies would create adequate safeguards to ensure that products offered are genuine and the liability for counterfeit products would be “jointly and severally” of the online firm and the seller.
In order to ensure that e-commerce is not used to defraud customers, registration with an authority identified by the government would be made mandatory, it added. (PTI)