Can a foreign company own an Indian e-commerce marketplace?

Foreign investment in a marketplace is allowed, subject to conditions on how the platform deals with sellers. Owning and selling inventory is generally not allowed for foreign-owned entities.

What must an online seller or platform disclose?

The business's legal name and address, contact and grievance officer details, product origin where required, and the terms of return, refund and delivery.

Is a platform responsible for what sellers list?

A platform that qualifies as an intermediary and follows the due diligence rules has conditional protection, which can be lost if it fails to act on proper notice.

What goes into terms of use and a privacy policy?

The rules for users and sellers, how data is collected and used, user consent, grievance redress and the limits of the platform's liability.

E-Commerce Lawyers, India | Alagh & Kapoor Law Offices

E-commerce law in India combines foreign investment policy, consumer protection, intermediary liability and data protection. The Firm advises e-commerce platforms on foreign investment, vendor and logistics arrangements, and the terms of use and privacy policies that govern their users.

What the law requires

Foreign investment: the policy permits foreign investment in a marketplace model, where the platform connects buyers and sellers, but not in an inventory-based model owned by the platform, and it restricts platform control over sellers and pricing.
Consumer law: the Consumer Protection (E-Commerce) Rules, 2020 require sellers' details, grievance officers, clear return and refund terms, and price transparency.
Intermediary status: the Information Technology Act, 2000 gives platforms conditional protection for third-party content if they follow the due diligence rules.
Data: privacy duties apply to personal data collected from buyers and sellers.

Scope of Work

foreign investment structuring
vendor and logistics agreements
terms of use and privacy policies
operational legal matters

Questions and Answers

Can a foreign company own an Indian e-commerce marketplace?: Foreign investment in a marketplace is allowed, subject to conditions on how the platform deals with sellers. Owning and selling inventory is generally not allowed for foreign-owned entities.
What must an online seller or platform disclose?: The business's legal name and address, contact and grievance officer details, product origin where required, and the terms of return, refund and delivery.
Is a platform responsible for what sellers list?: A platform that qualifies as an intermediary and follows the due diligence rules has conditional protection, which can be lost if it fails to act on proper notice.
What goes into terms of use and a privacy policy?: The rules for users and sellers, how data is collected and used, user consent, grievance redress and the limits of the platform's liability.

E-Commerce

What the law requires

Scope of Work

Questions and Answers

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