E-Commerce Platforms Required to Introduce ‘Country of Origin’ Filter
E-commerce platforms are poised to implement a distinct ‘Country of Origin’ filter for packaged goods, enabling consumers to effortlessly ascertain the origin of products. This initiative, proposed by the Department of Consumer Affairs, aims for implementation as early as 2026, pending approval.
On November 10, the ministry announced that this transformation would be enacted through an amendment to the 2011 Legal Metrology Rules.
While the obligation to disclose the Country of Origin on packaged products is already established, this new regulation seeks to enhance search functionality on e-commerce sites, thereby fostering transparency in the digital marketplace and leveling the playing field for domestic manufacturers.
Essential Aspects of the Consumer Ministry’s Proposal
The Ministry has published the Draft Legal Metrology (Packaged Commodities) (Second) Amendment Rules, 2025, which stipulate that all e-commerce entities offering imported products must include a ‘Country of Origin’ filter in their listings. Consumers will be empowered to filter and sort products based on their origin.
- What will change: Presently, origin details are concealed within product listings, necessitating manual searches by consumers.
- What is the target? The aim is to expedite the navigation of product information and promote informed purchasing decisions.
- How it will be implemented: These regulations will apply specifically to packaged commodities, which include fast-moving consumer goods (FMCG), electronics, and apparel.
Background of the Proposal
The Indian e-commerce sector is experiencing exponential growth, projected to reach a staggering 3 trillion rupees by 2025.
However, consumers have frequently voiced concerns regarding their inability to identify the origins of products. The ministry contends that this lack of transparency unfairly advantages imported goods.
In recent years, numerous complaints have surfaced as individuals grapple with the challenge of locating ‘Made in India’ products. In light of these consumer grievances, the ministry has initiated this regulatory measure to oversee the digital marketplace more effectively.
Ministry Emphasizes Transparency and Compliance
The ministry articulated that this feature would significantly reduce the time consumers spend searching for origin details within extensive listings. Further, it is expected to streamline enforcement; automated systems will supersede manual reviews, enabling swifter identification of regulatory breaches.
These reforms align with national priorities, enhancing consumer trust and fostering a more competitive digital ecosystem. A senior official remarked that improved product verification processes would accelerate compliance monitoring.
Support for Local Manufacturers
This proposal is strategically aligned with initiatives such as ‘Atmanirbhar Bharat’ and ‘Vocal for Local.’ Consumers will be better positioned to discover ‘Made in India’ products, bolstering the visibility of domestic offerings.
- For Consumers: Facilitates informed purchasing, allowing easier verification of product origins.
- For Manufacturers: Equal opportunities within the marketplace, enhancing parity with imported goods.
- For Government: Streamlined detection of fraudulent origin claims.
- Overall Impact: A consumer-centric approach to e-commerce that bolsters trust.
Experts predict that this initiative could propel a 20-30% increase in sales for small and local brands, as products categorized under ‘Made in India’ will gain prominence with the new filtering system.
Future Competitiveness of the E-Commerce Ecosystem
In the long run, these modifications are expected to create a more consumer-friendly e-commerce landscape. While companies will need to implement technical adjustments, including the integration of new filters on platforms such as Amazon and Flipkart, the alignment with national objectives promises to offer significant support.
Source link: Bhaskarenglish.in.
