Strict Regulation on E-Commerce: Mandatory Registration and Cancellation of Non-Compliant Platforms
Author
NEPSE TRADING
The Government of Nepal has decided to introduce strict regulations on the rapidly growing e-commerce sector to ensure transparency and systematic management. The Ministry of Industry, Commerce, and Supplies has issued a new directive, including provisions to cancel unregistered e-commerce platforms.
According to the directive, all businesses conducting online trade of goods and services must be registered on the government portal. If any firm is found operating without registration, inspection officers will issue a notice giving seven days to comply. Failure to register within the given time may result in the cancellation of the platform.
The directive also states that registration may be canceled if a firm provides false or misleading information, requests voluntary removal, or violates regulations. All e-commerce businesses must fulfill their tax obligations under existing laws. Registration, updating, and cancellation services will be provided free of cost.
All e-commerce operators are required to use only digital payment gateways approved by Nepal Rastra Bank. Even in cases of cash payment, electronic invoices must be issued. If customers are entitled to refunds, businesses must process them within seven days.
The directive emphasizes user privacy and data protection. Sensitive personal information such as passwords, phone numbers, addresses, and birth dates must be stored in encrypted form. Appropriate technical and administrative measures must be adopted to prevent unauthorized access, misuse, or data leaks.
In case of system failures or data breaches, platforms must immediately suspend operations and resume services only after recovery. They are also required to inform the public about such incidents.
Furthermore, after delivering goods or services, businesses are prohibited from charging any amount beyond the stated price and pre-declared delivery costs. This regulation is expected to strengthen consumer protection and enhance trust in Nepal’s e-commerce sector.According to the directive, all businesses conducting online trade of goods and services must be registered on the government portal. If any firm is found operating without registration, inspection officers will issue a notice giving seven days to comply. Failure to register within the given time may result in the cancellation of the platform.
The directive also states that registration may be canceled if a firm provides false or misleading information, requests voluntary removal, or violates regulations. All e-commerce businesses must fulfill their tax obligations under existing laws. Registration, updating, and cancellation services will be provided free of cost.
All e-commerce operators are required to use only digital payment gateways approved by Nepal Rastra Bank. Even in cases of cash payment, electronic invoices must be issued. If customers are entitled to refunds, businesses must process them within seven days.
The directive emphasizes user privacy and data protection. Sensitive personal information such as passwords, phone numbers, addresses, and birth dates must be stored in encrypted form. Appropriate technical and administrative measures must be adopted to prevent unauthorized access, misuse, or data leaks.
In case of system failures or data breaches, platforms must immediately suspend operations and resume services only after recovery. They are also required to inform the public about such incidents.
Furthermore, after delivering goods or services, businesses are prohibited from charging any amount beyond the stated price and pre-declared delivery costs. This regulation is expected to strengthen consumer protection and enhance trust in Nepal’s e-commerce sector.
