The E-Commerce Act, 2081 (2025) in Nepal establishes a comprehensive legal framework regulating electronic commerce. Two of the most significant aspects of the Act are:

• The Grievance Redressal Mechanism, which safeguards consumers’ rights and provides a structured system for handling complaints; and
• The Offence and Penalty Provisions, which deter unlawful or unethical online practices by e-commerce businesses and service providers.

Together, these provisions promote accountability and build trust in Nepal’s growing digital economy.

Grievance Redressal Mechanism (Section 33)

The E-Commerce Act, 2081 places strong emphasis on consumer protection through a dedicated grievance redressal system. Every business entity engaged in electronic commerce is legally obligated to establish an accessible, transparent, and effective mechanism for resolving consumer complaints.

This grievance redressal framework aims to:

• Enhance consumer confidence in digital transactions,
• Ensure timely and fair resolutions, and
• Promote corporate accountability among online businesses.

It establishes a clear chain of responsibility from complaint filing to final resolution thereby fostering transparency and professionalism in Nepal’s e-commerce environment.

1. Filing of Complaints

Consumers who are dissatisfied with products or services purchased online whether due to poor quality, non-delivery, misleading information, or breach of terms have the right to lodge complaints through the following means:

• Electronically: via the business’s online grievance portal or email;
• In writing: by submitting a formal complaint letter; or
• In person: at the business’s designated grievance handling unit or office.

Each e-commerce business must appoint or designate a Grievance Handling Unit or officer responsible for managing consumer complaints.

2. Acknowledgement and Registration

Upon receiving a complaint, the business must:

• Immediately register the complaint in its internal system, and
• Acknowledge receipt to the complainant through electronic or written communication.

This acknowledgment should contain a tracking or reference number, ensuring the consumer can monitor the status of their complaint.

3. Investigation Process

The business entity must investigate the complaint promptly and fairly.

During the investigation:

• The grievance handling unit may request additional documents or clarifications from the consumer if required.
• Both the consumer and the concerned department or supplier may be contacted for evidence or statements.

The Act stipulates that a final resolution or decision must be provided within fifteen (15) days from the date of complaint registration. This time-bound process ensures efficiency and avoids unnecessary delays.

4. Resolution and Communication

After completing the inquiry, the business must:

• Communicate its final decision to the consumer clearly and transparently, and
• Provide an explanation if the complaint is rejected or deemed unsubstantiated.

Where a complaint remains unresolved or mishandled, the consumer may escalate the matter to the Department of Commerce, Supplies, and Consumer Protection (DoCSCP), which holds supervisory authority over e-commerce disputes.

Offences and Penalities/Punishment under the E-Commerce Act, 2081

The Act defines a range of offences and violations that undermine fair trade or harm consumer interests. Any person, business, or institution conducting e-commerce activities must comply with the provisions of the Act, and failure to do so constitutes a punishable offence. The penalties range in accordance with the gravity of the offence. We can classify the offences as minor offence and severe offence.

Key Offences Include:

Unregistered or Unapproved Operation

Conducting e-commerce activities without establishing and registering an electronic platform, or operating without obtaining the required platform listing number or approval from the Department of Commerce, Supplies, and Consumer Protection.

Misrepresentation and False Information

Publishing, displaying, or advertising false, misleading, or incomplete information about goods, services, or business identity. This includes posting or causing fake reviews, ratings, or feedback by impersonating a fictitious consumer or misrepresenting the authenticity or quality of goods and services.

Trading Unlisted or Misleading Goods and Services

Listing or facilitating the sale of goods or services that are not displayed, inaccurately described, or differ from those advertised on the platform.

Failure to Maintain Records

Not keeping complete and accurate records of purchase and sale transactions for the duration prescribed by taxation and record-keeping laws.

Non-Compliance with Warranty or Guarantee Terms

Failing to honor or ensure compliance with warranty or guarantee obligations for sold goods or services within the specified duration.

Unfair or Discriminatory Trade Practices

Engaging in deceptive, manipulative, or exploitative commercial conduct, including:

• Giving preferential treatment to certain sellers or products without disclosure;
• Discriminating among sellers of similar goods or services; or
• Failing to publish legally required notices or information, such as refund, cancellation, or grievance procedures.

Example: A platform fails to display its refund policy or consumer complaint mechanism as mandated by law.

Lack of Transparency in Seller Preference

Granting special preference or promotional advantage to specific sellers or goods without clearly indicating such preference to consumers on the platform.

Failure to Publish Mandatory Legal Information and Notices

When an e-commerce business fails to display or publish on its platform the information and notices required to be maintained under the prevailing laws and regulations.

Absence of Required Agreements

Operating or facilitating sales without a written or electronic contract between the intermediary and the seller before listing goods or services for sale.

Refusal to Process Returns, Exchanges, or Refunds

Rejecting or ignoring a buyer’s legitimate request for return, replacement, cancellation, or refund of goods or services in accordance with prevailing law or agreed terms.

Delay or Failure in Delivery of Goods or Services

Failing to deliver goods or provide services within the predetermined time frame, except where delay occurs due to force majeure or unavoidable circumstances.

Sale of Inauthentic or Counterfeit Goods and Services

Selling or offering goods or services that are non-genuine, unauthorized, or counterfeit, after making a formal commitment regarding authenticity.

Failure to Provide Business Registration or Legal Documentation

Not providing valid business registration certificates, VAT/PAN details, grievance redressal mechanisms, or return and refund policies to the intermediary or relevant authority.

Inaccurate or Incomplete Product or Service Information

Failing to provide accurate, complete, and up-to-date product or service details as required under Section 6 of the Act.

Data Misuse and Privacy Violations

Collecting, using, sharing, or disclosing consumers’ personal or financial data without their informed consent, or using such data beyond the stated lawful purpose.

Failure to Accept Returns or Refund for Non-Conforming Goods/Services

When an e-commerce business fails to accept the return, cancellation, or discontinuation of goods or services that do not match the displayed information, mutual agreement, are delivered late, or are found defective, and does not refund the buyer’s payment accordingly.

Summary

Offences under the E-Commerce Act encompass operational, informational, transactional, and ethical violations, including unregistered activity, deception, privacy breaches, failure to deliver, unfair trading, and non-compliance with legal obligations. They ensure accountability, transparency, and consumer protection across Nepal’s e-commerce ecosystem.

Penalties and Punishments

The Act imposes graduated penalties depending on the seriousness and frequency of the offence. These include both monetary fines and criminal sanctions.

1. Minor Offences

For general non-compliance or procedural breaches (e.g., late registration, incomplete disclosures, or failure to update business details):

• Fine ranging from NPR 20,000 to NPR 100,000.

2. Serious Offences

For fraudulent activities, deception, or deliberate violation of consumer rights:

• Fine ranging from NPR 40,000 to NPR 500,000, and/or
• Imprisonment for six months to three years, depending on the severity of the offence.

In some cases, both fine and imprisonment may be imposed simultaneously.

3. Administrative Actions

In addition to fines or imprisonment, the Department may impose:

• Suspension or cancellation of e-commerce registration,
• Temporary or permanent closure of the online platform, and
• Blacklisting of the business or individual involved in repeated violations.

Investigation and Case Procedure

The E-Commerce Act authorizes designated officers within the Department of Commerce, Supplies, and Consumer Protection to:

• Receive complaints or reports of offences,
• Conduct preliminary inquiries and inspections,
• Gather digital and documentary evidence, and
• Initiate proceedings against offenders.

If an offence warrants prosecution, the case is forwarded to the Government Attorney’s Office, which then files a case in the Consumer Court or the competent judicial body established to handle e-commerce disputes.

The Consumer Court follows summary procedures to ensure timely adjudication and consumer justice in digital trade matters.

Conclusion

The E-Commerce Act, 2081 represents a major step in shaping a responsible, fair, and secure online marketplace in Nepal. Its dual focus on consumer grievance redressal and penal enforcement creates a balanced framework that protects consumers while promoting compliance among businesses.

For e-commerce entrepreneurs, strict adherence to the Act’s provisions is not merely a legal formality but a business imperative essential to maintaining consumer trust and ensuring long-term sustainability in Nepal’s fast-evolving digital economy.

For consumers, the Act serves as a powerful tool for protection and recourse, ensuring that their voices are heard and their rights upheld in the digital age.