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Home Prime News

Government Tightens Crackdown on Unregistered Online Businesses

CEO Tab by CEO Tab
August 19, 2026
in Prime News
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Government Tightens Crackdown on Unregistered Online Businesses

This image shows the office building of the Department of Commerce, Supplies and Consumer Protection in Babarmahal, Kathmandu in August 2021. Photo courtesy: Anash Uddin

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The government has intensified its crackdown on unregistered online businesses, directing e-commerce operators using social media and other digital platforms to register with the concerned authorities without delay.

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The Department of Commerce, Supplies and Consumer Protection (DoCSCP) issued a public notice instructing businesses operating through Facebook, TikTok, Instagram, mobile applications and websites to complete the required registration. The department warned that businesses found operating in violation of existing laws would face strict legal action.

Officials said the move follows a growing number of complaints involving online fraud, misleading advertisements and the sale of substandard goods. The department said the increasing number of consumer grievances had made it necessary to take action against businesses operating illegally through digital platforms.

The government has clarified that businesses selling goods or services through websites, applications, software, the internet, intranets and social media marketplaces fall under the definition of e-commerce. The definition covers not only online retailers but also service providers operating in sectors including electricity, drinking water, telecommunications, information technology, health, education, consulting, tourism, transportation, banking, insurance, legal services and engineering.

The DoCSCP said the growth of digital payments has also increased the risks of fraudulent transactions and the distribution of low-quality products through unregistered platforms.

The department warned that businesses operating through unlisted or illegal electronic platforms would face action under the E-Commerce Act 2024 and other prevailing laws.

Meanwhile, consumers have been advised to purchase goods and services only through officially registered and listed online platforms to reduce the risk of fraud and ensure greater protection of their rights.

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