Nepal’s New E-Commerce Bill to Regulate Online Businesses and Ensure Consumer Protection

A new bill, the Electronic Commerce (E-Commerce) Act, 2081, has been passed by the House of Representatives and the National Assembly in Nepal and awaits certification by the President before it can be enacted into law.

The legislation, upon enactment, will regulate online businesses across the nation, requiring all businesses to register with the government and obtain permission to sell goods or services. Home and small enterprises will be allowed to operate on social media sites like TikTok, Instagram, and Facebook provided they are registered with the relevant authority.

If there is no separate platform for these businesses, they will have to register themselves as micro- or small-enterprises. The law imposes a fine ranging from Rs 20,000 to 100,000 on businesses which fail to create an electronic platform, become listed with the department, or provide required product information. Serious offenses can attract criminal penalties of Rs 50,000 to Rs 500,000, three years of jail, or both.

The most significant provisions of the bill are that online sites have to register themselves within three months of the law being enacted, that online contracts between buyers and sellers are enforceable, and buyers have a right to return goods that fail to meet descriptions, with sellers obligated to deliver replacements. The law also ensures protection of customer data, mandates intermediary sites to keep records of transactions and bans discrimination of vendors. The law will ensure transparency, protection of consumers, and accountability for Nepal’s online commerce sector.