• Posted by CERC India
  • Posted in

e-Comm law may include social media

Under lens

The government is planning to regulate products and services sold on social networks like Facebook, Instagram, Pinterest and WhatsApp under the upcoming rules governing e-Commerce platforms. This decision has been taken in view of a number of complaints of fraud and scams on social networks and payment apps.


Facebook Marketplace, Instagram’s Shoppable Posts and WhatsApp Business are becoming increasingly popular in India. In a poll by Local Circles, 46% of respondents said they had been victims of fraud on social networks. 

Curbing fraud 

FIR lodged against Club Factory 

Fake products

An FIR has been lodged against Chinese e-commerce company Club Factory and its directors and CFO under Sections 420 and 406 of the IPC. The FIR has been lodged for cheating and breach of trust by selling fake products of well-known brands.

The action was taken after a Lucknow resident submitted that in a criminal conspiracy Club Factory is advertising heavy discounts on popular brands and then shipping fake products. The complainant had ordered a Titan watch, offered at a discount of 86%, and a pair of Ray-Ban sunglasses, offered at a discount of 90%. Upon delivery, he discovered that both products were fakes. 

Breach of trust 

Blog Attachment
Subscribe to Newsletter
SIGN UP for the Newsletter.
Exclusive from Consumer Education and Research Centre!
Thank You. We will contact you as soon as possible.
"A placerat mauris placerat et penatibus porta aliquet sed dapibus, pulvinar urna cum aliquet arcu lectus sed tortor aliquet sed dapibus."
John Doe, Astronomer
Bubble Company Inc. © 2011-2014