Consumer Affairs Secretary Rohit Kumar Singh has underscored the critical need for the Open Network for Digital Commerce (ONDC) to address liability concerns associated with the delivery of incorrect or defective products. Speaking at the ‘Deloitte Growth with Impact Government Summit,’ Singh emphasized that resolving liability issues is essential to ensure the provision of satisfactory services to consumers, as reported by news agency PTI.
Singh raised a pertinent question regarding the liability in cases where a consumer orders a product through an app linked to a bank on the ONDC platform, purchases it from a seller located elsewhere, and receives a wrong product. He urged ONDC CEO T Koshy to address these liability concerns, stating that failure to do so could impede the success of the platform.
ONDC, a private non-profit platform backed by the Department for Promotion of Industry and Internal Trade (DPIIT), was incorporated on December 31, 2021, with the goal of democratizing e-commerce in the country. Since its soft launch in five cities in April last year, including Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore, ONDC has expanded its services beyond food and grocery delivery. The platform now includes partners in electronics, fashion, and mobility services.
Koshy revealed ONDC’s plans to enter the financial products and services segment, and there have been reports about its foray into skill-based services such as appliance repair and teaching assistance. However, Singh expressed concerns about the legal framework in which ONDC operates, as it neither falls under the category of the seller nor the buyer. He stressed that addressing liability issues is crucial before the platform becomes extensive and faces legal challenges.
Singh highlighted that in case of legal disputes, the government could potentially bear liability, given its involvement in the ONDC supply chain. He urged a proactive approach in addressing liability concerns before ONDC becomes a significant player in the market.
An official stated that ONDC is actively working to establish a robust system for consumer grievance redressal. Meanwhile, a recent report by Redseer projected ONDC’s potential to catalyze growth in the e-commerce space, estimating a gross merchandise value of $250-300 billion by 2030.
