Consumer Affairs Secretary Rohit Kumar Singh has asked the Open Network for Digital Commerce (ONDC) to address concerns regarding liability in instances of incorrect or defective product deliveries.
Speaking at the ‘Deloitte Growth with Impact Government Summit,’ Singh highlighted the importance of addressing liability issues to deliver satisfactory services to consumers, as reported by the news agency PTI.
“If I order through an app of a bank through Amazon and buy it from a seller located elsewhere and I get the wrong phone, then who is liable? So the issue of liability… I keep telling Mr T Koshy (ONDC CEO) that you have to address the issue of liability otherwise this thing is not going to work,” Singh was quoted as saying.
Established on December 31, 2021, ONDC is a non-profit platform in the private sector supported by the Department for Promotion of Industry and Internal Trade (DPIIT). Its objective is to democratize e-commerce within the country.
In April last year, the government initiated a soft launch of ONDC in five cities, including Delhi-NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. Since then, the network has experienced significant growth. While it began with food and grocery delivery, the platform has expanded by onboarding partners in electronics, fashion, and mobility services.
Recently, Koshi mentioned that ONDC is exploring opportunities to enter the financial products and services sector. Additionally, there have been recent reports indicating ONDC’s foray into skill-based services like appliance repair and teaching assistance.
“I hope ONDC becomes a success, but in the law where does ONDC fit in? It is neither the seller nor the buyer. But If I am buying through the app…if something goes wrong, there are five parts of the chain (in ONDC supply chain), then who is liable,” said Singh at the event.
He mentioned that in the event of a legal proceeding, the government would consistently bear the liability, given its involvement in the matter.
“Before things like ONDC become mammoth and huge, the issue of liability must be addressed,” he added.
According to the report from the news agency, an official stated that ONDC is actively developing a system to ensure proper grievance redressal for consumers.
In a recent report, Redseer indicated that ONDC is positioned to drive growth in the e-commerce sector across various domains and has the potential to generate $250-300 billion in gross merchandise value by 2030.
