Impact of the E-commerce Bill on Second-Hand Goods Marketplaces and Social Media Platforms
In light of the recent e-commerce bill passed by the government, significant changes have been introduced in the buying and selling of second-hand goods, particularly affecting platforms like Facebook Marketplace and our own marketplace. The bill, officially registered in the National Assembly of the Federal Parliament on June 12, has implications for social media-based businesses and small e-commerce enterprises, ultimately leading to their closure.
One of the crucial aspects defined in the bill is the term 'intermediary businessperson' mentioned in the definition section of section 2. According to this definition, any domestic or foreign person, firm, company, or organization that facilitates the exchange of goods and services through an electronic platform, where electronic information is exchanged between buyers and sellers, falls under the purview of an 'intermediary businessperson.'
Within this definition, both Daraz and our marketplace, Facebook Marketplace, are considered intermediary businesses, and as such, they are subjected to various provisions in paragraph 3 of the bill regarding the liability of electronic business-related parties.
Section 14 of the bill outlines the obligations of intermediaries, with subsection (e) stipulating that before listing any goods or services for sale on an electronic platform, an agreement must be established with the seller who intends to offer such goods or services. This measure ensures proper consent and understanding between the intermediary and the seller.
Similarly, subsection (f) of section 14 highlights the responsibility of the intermediary in cases of returns or refunds. If a buyer decides to return an item or service in compliance with prevailing laws, the intermediary is mandated to take back the item or service, address any potential issues, and issue refunds accordingly.
Furthermore, section 16 of the bill sets out additional requirements for conducting business with an intermediary businessman on an electronic platform. Subsection (a) emphasizes the importance of entering into a written agreement with the intermediary businessman before providing any goods or services for sale through the platform. This written agreement ensures clear terms and conditions are established between the parties involved.
In addition, subsection (b) of section 16 outlines specific information that must be provided to intermediary businessmen. This includes evidence of business registration, relevant documents, business name and address details, mechanisms for handling consumer complaints, specifics related to goods or services leasing, return, or refund policies, as well as permanent account number or value-added tax registration details.
The e-commerce bill has undoubtedly brought significant changes to the landscape of second-hand goods marketplaces and social media platforms engaging in e-commerce activities. As these new regulations take effect, businesses must adapt to the requirements outlined in the bill to ensure compliance and avoid penalties.
In conclusion, the e-commerce bill represents the government's efforts to regulate electronic platforms and intermediary businesses involved in buying and selling goods and services. While it may lead to the closure of some marketplaces, it also aims to foster a safer and more responsible e-commerce environment for both buyers and sellers. Adhering to the bill's provisions is crucial for businesses to continue operating and thriving in the evolving digital marketplace.
