The draft Consumer Protection (E-Commerce) Rules, 2020 may need further clarity on the fallback liability of an e-commerce marketplace.

Under the draft rules, a marketplace e-commerce entity shall be subject to a fallback liability when a seller registered on its platform fails to deliver goods and services due to negligent conduct, causing loss to consumers.

The e-commerce firms, however, can get exemption from liability against lawsuits from irate consumers as set out in the IT intermediary rules. However, industry is waiting for greater clarity on the fallback liability that could spill over to the platform.

Industry observers argued that e-commerce platforms could not be blamed or become liable for a fraud committed by a seller over whom they have no oversight.

“The liability is going to be that of the seller, it cannot be on somebody who is transmitting the information as provided by the seller,” Aruna Sharma, former secretary to the government of India, said at a session organised by public policy think-tank — The Dialogue — on Thursday.

Consumer activist Jehangir Gai said both online and offline markets should be able to always coexist. “There is a need to check the methodology. Let’s have regulations that safeguard consumers without impacting the industry.”