“There are mandatory requirements regarding product labeling that all producers, retailers and other stakeholders have to fulfill. The e-commerce companies too have to follow these rules.
“Along with Consumer Protection (e-Commerce) Rules, 2020, there are various other provisions under Legal Metrology (Packaged Commodities), Rules, 2011 that the e-commerce entities have to abide by. According to Rule 6(10) of the LM Rules, every e-commerce entity should ensure that the mandatory declarations are displayed on the products sold online. Noncompliance with levelling laws can have serious consequences. This may include fines, product recalls, or even legal actions.”
This was stated by Nidhi Khare, Secretary, Department of Consumer Affairs and Ministry of New and Renewable Energy, Government of India, in conversation with Anoop Verma, Editor-News, ETGovernment. In the conversation that follows Nidhi Khare sheds light on the key initiatives and actions of the Department of Consumer Affairs and the Ministry of New and Renewable Energy.
Edited excerpts:
The Ministry of Consumer Affairs has identified certain issues, which violate the rights of the consumers, in the business model being practiced by the Quick Commerce companies. What are these issues and what actions can be taken to make Quick Commerce consumer friendly?
Quick commerce has become a powerful driving force of India’s consumer economy. This model has emerged as a response to changing consumer expectations in urban areas, where convenience and immediacy are paramount. But this paradigm shift has come with its own set of challenges such as logistical complexities, managing inventory across multiple stores and warehouses, high operational costs and pressure on delivery personnel to meet the timelines.
A number of complaints were received against the Quick Commerce companies in the consumer helpline number 1915. The Department of Consumer Affairs makes all the possible efforts to resolve every consumer complaint that we receive. The major complaint that we received was that the goods being delivered were close to the expiry date.
If Quick Commerce is allowed to become a vehicle for dumping products close to expiration dates, then that will not be in the consumer interest. So the Department of Consumer Affairs has advised the companies that they should declare the expiry dates of their products upfront on their website. When the consumer has access to all the relevant information regarding the products that he is buying online, he will be empowered and in a position to take buying decisions that are in his best interests.
Are you also looking at the warehousing, packaging and delivery systems that the Quick Commerce companies are deploying?
The regulators and departments such as FSSAI, LM, Consumer Protection, Central Consumer Protection Authority and others work collaboratively to ensure better compliance in areas such as warehousing, packaging, delivery systems and others. The companies may utilize localized micro-warehouses to store high-demand products closer to customers. This reduces delivery time and ensures that popular items are always in stock.
The focus should be on high-quality packaging as it prevents damage to products during transit, ensuring items arrive in pristine condition. For perishables or temperature-sensitive items, ensuring they remain fresh is vital for customer trust. The companies are encouraged to adopt hassle free return policies and maintain excellent 24/7 consumer support channels. Another alternative could be, partnering with local vendors or producers and adopting sustainable practices that may resonate with conscious consumers. These are merely the suggestions for the companies to win consumer trust and establish trustworthy brand value.
As the trend of quick commerce continues to grow, the delivery boys, who have to meet the short delivery deadlines, have come under a lot of stress. The case is also being made that the rise of quick commerce is leading to the decline in the business of the traditional kirana stores. What can be done to improve the condition of the delivery boys and minimize the impact on the kirana stores?
Regarding quick commerce – it has to be accepted that most consumers are happy after receiving their deliveries quickly. The consumers can order groceries at any time of the day and they manage to get the deliveries in ten to fifteen minutes. This is why quick commerce is growing in the country–many consumers prefer to order grocery items through such companies.
The role of the Department of Consumer Affairs is confined to protecting the interests of the consumers. Whenever there are violations of consumer rights and instances of unfair trade practices, and misleading advertisements, the Department takes action to remedy the situation. Other stakeholders in the government are looking at the issues concerning the condition of the delivery boys and the impact on the local kirana stores. Measures are being taken by the relevant government departments to provide job security to the delivery boys and other gig workers, and to safeguard the interests of the kirana stores. Balance has to be achieved between consumer satisfaction, consumer rights and the overall business model and the business ecosystem.
The rise of digital platforms has revolutionized employment, creating new opportunities for flexible work arrangements. What steps is the government taking to protect the rights of the workers in the emerging gig economy?
India’s gig and platform economy has witnessed rapid expansion, with NITI Aayog’s report ‘India’s Booming Gig and Platform Economy’ projecting that the workforce in this sector will cross 1 crore in 2024-25 and grow to 2.35 crore by 2029-30. The Union Budget 2025 marks a landmark shift in India’s labor welfare landscape with a comprehensive framework to extend formal recognition and social security benefits to gig workers. The budgetary allocation for the newly announced Employment Generation Scheme has been doubled from ₹10,000 crore to ₹20,000 crore. The allocation under the Employees’ Pension Scheme has been increased by ₹300 crores and under the PM Shram Yogi Maandhan Yojana by 37% compared to last year.
The Finance Minister has announced measures to facilitate identification of gig workers through unique identity cards, streamline their registration on the e-Shram portal, and ensure access to healthcare under PM Jan Arogya Yojana. These steps will further strengthen the safety net for over 1 crore gig workers across sectors. A pilot initiative has already been undertaken by the Ministry of Labor and Employment to register platform workers and aggregators on the e-Shram portal. An Aggregator Module has been piloted enabling digital platforms to onboard themselves and their workforce onto India’s national database for unorganized workers. As part of this pilot, four leading aggregators—Urban Company, Zomato, Blinkit, and Uncle Delivery—have already registered. Such efforts of the government point towards its commitment to draw a balance that has to be achieved between consumer satisfaction, consumer rights and the interests of unorganized employees in the overall business ecosystem.
What kind of labeling are the quick commerce companies supposed to do for the goods that for the products that they sell on their online outlets?
There are mandatory requirements regarding product labeling that all producers and other stakeholders have to fulfill. The e-commerce companies have to follow these rules. Sometimes, they provide the information regarding the product but at other times, they place a picture of the product on the website and fail to disclose the mandatory labeling information. They have to provide information such as expiry date, country of origin, net quantity and the nature of the ingredients from which the product has been created.
Rules 4, 5 and 7 of the Consumer Protection (e-commerce) Rules, 2020 provides for the general duties and liabilities of e-commerce entities, marketplace e-commerce entities and inventory e-commerce entities whereas Rule 6(10) of the Legal Metrology (Packaged Commodities), Rules, 2011 makes declarations such as Name and Address of Manufacturer/Packer/Importer, Country of Origin, Generic Name, Net Quantity, Date of Manufacture, Consumer Care details and other such details on the product mandatory.
The PM Surya Ghar Yogna has crossed 8.5 lakh solar rooftop installations. This is a major success story for the renewable energy sector. How do you see the key reasons behind the success of this scheme?
The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) was launched by the Prime Minister in February 2024, and then implemented by the Ministry of New and Renewable Resources with a great deal of speed and efficiency. Within one year of the launch of the scheme, over 8.5 lakh households have benefited from solar rooftop installations.
I believe that this scheme has been successful because it focused not just on increasing the subsidy support but also on a range of measures for regulatory and procedural simplification, awareness generation and close coordination with state governments. The consumer response has been tremendous as they benefit from rooftop solar installations not just from reduction in electricity bills but even generating income from sale of surplus power to the DISCOMs. The scheme has also expanded through the growth of new solar entrepreneurs who have, in turn, created new employment opportunities in the green economy sector.
What steps has the government taken to make it easy for the consumers to get their solar installation done?
Several things have been put in place to ensure that the customer does not have to run around various government offices, discoms and vendors for solar installation. A national online portal has been created for the PMSGMBY scheme – all that the customers need to do is go to the portal where he will find all the information and tools that he needs. On the national portal, he can fill the form online and even identify the most suitable vendor for doing the installation.
In the portal, the customers can find information regarding the various vendors who are working in their area. They can see the ratings of the various vendors. They can even apply for loans to pay for solar equipment and services. They don’t have to go to various banks and financial institutions for loans–they can make the loan application through the portal, which has been designed to serve as a single window for all things that the consumer might need to get his work done. The government has worked with states to waive or do away with several redundant steps in the RTS installation process and has also set clear time limits and service level standards for the DISCOMs in order to enable consumers and vendors to install rooftop solar systems and claim the subsidy in the shortest possible time.
Through PMSGMBY, the government is targeting 1 crore solar installations by March 2027. Judging by the existing pace of solar installations, do you think that this target is achievable?
This target is certainly achievable because the pace of solar installations is constantly increasing. More and more consumers are seeing the benefits and getting the installation done. The Ministry of New and Renewable Energy has taken new initiatives to make the process of solar installation easier for consumers. To give one example, earlier there was a system for verification of the ownership of the premises where solar installation was required. This provision, and many other provisions, have now been removed and the scheme uses the consumer electricity account number as the single unique identifier through a digital API to ensure seamless user experience. The process of solar installation has been made seamless – it is like a single window system. In this year, we expect a major uptick in the number of solar installations for realizing the target of 1 crore.
On Republic Day, the Ministry of New and Renewable Energy unveiled a ‘Sunrise of New India’ tableau. How do you see the role of this tableau in promoting renewable energy in the country?
The captivating tableau that the Ministry of New and Renewable Energy unveiled at the Republic Day parade at Kartavya Path, in New Delhi, offered a glimpse into India’s evolving energy landscape. It was designed to highlight the groundbreaking strides in renewable energy that the nation has made in the last few years, while celebrating our cultural heritage.
The central focus of the tableau was on the PM Suryaghar Muft Bijli Yojana, which is the world’s largest residential rooftop solar initiative. The tableau also put the spotlight on other transformative MNRE initiatives, including national green hydrogen mission and Production Linked Incentive for high efficiency solar PV modules. It also highlighted the fact that India is the world’s fourth largest installer of wind energy. These efforts are not only advancing India’s green economy but are also poised to generate millions of green jobs by 2030.
Eight hundred special guests, comprising the beneficiaries of PM Suryaghar, PM Kusum, and RE technicians were invited by MNRE to attend the Republic Day. These guests were a microcosm of all Indians who are playing an active role in India’s energy transition and we hope that more and more families join us in making India’s target of net zero in 2070 a reality.The cost of renewable energy has come down significantly in the last 10 years. In some cases, renewable energy is turning out to be actually cheaper than the energy produced from fossil fuels.
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