We cannot deny the fact that the online business has taken over most of the businesses worldwide, Nepal at the present has also been experiencing the drastic shift in the choice of the customers, Social media sites like Tik Tok have developed into avenues for e-commerce vendors and retailers to market and sell their goods, enhancing consumer accessibility and transparency. Furthermore, the proliferation of digital payment gateways like as eSewa, Khalti, and Fonepay has made it possible for smooth online transactions, hence eliminating obstacles to online buying. Delivering items has become more necessary as e-commerce has grown. As a result, there are now more logistics firms on the market. People prefer having an easy lifestyle be it in shopping clothing, foods, electronics or even travelling. It has become a normal trend for people to look for an item online before visiting the shop/outlet in person. Many customers have reported receiving damaged products, wrong items, price discrepancies, and lacking return and refund options. The online business is growing and hence has to be regulated systematically legally as well.
Recently the Parliament passed The Online Business (e-commerce) Bill on 2nd March, 2025 a year and half after the bill was passed by the lower house. The bill is an amendment to the existing Online Business Act, 2063. Both the houses have passed the bill and is waiting to be signed by the President in order for the bill to replace the 2063 Act.
The bill proposes the name of the Act to be amended to, “Online Business (e-commerce) 2080”. A wider area of online business is covered by the bill amending the definition by increasing the range of involvement to the online business by the institutions as well, not just individuals. The bill defines an e-commerce business as the buying and selling of goods and services through an online platform. Electronic Commerce (e-commerce) means “the process of buying and selling goods and services through an electronic platform which also includes the marketplace/process of buying or selling of goods and services through social networks.” However, according to the amendments, online platforms that only inform or promote goods and services are not considered e-commerce businesses.
Under the new law, online platform operators who fail to meet legal obligations could face up to three years in jail or fines ranging from Rs 300,000 to Rs 500,000. Action will be taken against e-commerce platforms not listed in the electronic system of the Department of Commerce, Supplies and Consumer Protection, according to the e-commerce bill. Unlisted online businesses face fines ranging from Rs 10,000 to Rs 50,000.
The bill stipulates that an intermediary business platform’s agreement with sellers willing to sell goods using the online platform must be in two forms: written and online. Previously, only written agreements were allowed. The bill states that when items are purchased using an e-commerce platform, a contract will be formed between customers, sellers, and traders. The accountable party must take care of any liabilities that may develop.
The new measure permits customers to pay either the dealers or the transporters on their behalf, whereas the prior bill compelled buyers to pay traders directly.
The online Businesses are required to take a Permanent Account Number (PAN) and registration is compulsory in Value Added Tax (VAT). The Bill also provides for the details on the portal system that is to be managed for the Online Businesses:
- The Department is responsible to establish an electronic portal for the online businesses,
- The portal shall consist the information related to the online businesses,
- The Department shall provide an Enrollment Number along with specific ID for the businesses registered in the portal,
- If a Trader needs to update details related to their business through the specific ID, they can do it through the portal,
- The details/information provided by the trader shall be verified by the Department of Commerce, Supplies and Consumer Protection before publishing the details in the portal,
- If the registered trader needs to change any of the details mentioned in the portal, s/he shall update the details within 72 hours after making payment in the portal,
- If the no. of branch or an outlet is to be increased or decreased, the updated details of the increased or decreased no. of the branch or the outlet is to be provided in the portal within 7 days from the date of increase or decrease of the branch or an outlet.
The e-commerce platform needs to clearly state the latest sales price, details of delivery charges, time and date of delivery, and methods of making payment. If the buyer demands the goods on a specific day or at a specific time and place, delivery has to be made accordingly.
The Online classified Business means the Businesses that involve in the Advertising of goods and services to consumers through electronic media (electronic platforms). The online classified businesses are required to disclose the following details:
- Name and Picture of the Goods and Services,
- The final price of the goods and services
The following provisions has been added in order to promote small businesses:
- The government for the promotion of Startups and cottage industries shall provide incubators, resources and funding in order to help the businesses.
- The startup businesses after their registration are eligible for exemption of tax for 3 months and 20% tax exemption for the next year.
The law outlines a refund mechanism for customers in the event that the goods and services they have purchased do not meet the specified parameters, including weight, shape or picture, trademark, and design. The consumers can return the goods within 7 days if the goods are not as per the demand of the customer.
The bill provides the provisions related to the refund practices. If the supplied goods don’t match the information that was provided, such as the final selling price, extra delivery fees, usage warnings, and the delivery time and date, buyers can ask for a refund. Refunds are also available in the event that the warranty and guarantee terms of the delivered and online goods differ, or if the company, name, or country of manufacture changes. If the items are damaged, arrive late, or do not match the agreed description, the seller is not allowed to refuse a refund. The bill states that customer information should be kept secret. This confidential information should not be provided to others nor used for the seller’s own purpose.
If a trader sells goods and services to any foreign individuals, firm, company or institution through an electronic platform operated within Nepal, s/he may export such goods and Services subject to the prevailing federal law with a prior agreement. The records of the transactions of goods and services purchased and sold shall be preserved for a period of Six Years, depending on the nature of the goods and services. Overall the bill prioritizes the protection of Consumer rights while laying out the provisions.
o7ytnr