The Electronic Commerce (E-Commerce) Act, 2081, passed by the House of Representatives and the National Assembly, is awaiting certification by the President. Once certified, it will officially become law. Parliament Secretariat Spokesperson Ekram Giri stated that the bill is currently in the certification process and will come into effect on the 31st day after presidential certification.
The bill includes provisions for penalties on businesses that operate without creating an electronic platform, fail to register with the relevant department, or do not provide necessary details about goods or services. If the buyer and seller fail to fulfill their obligations, the inspection authority can impose a fine ranging from Rs 20,000 to Rs 100,000. Additionally, businesses conducting electronic transactions without fulfilling legal obligations may face fines between Rs 50,000 to Rs 500,000, imprisonment for six months to three years, or both, depending on the severity of the offense.
Under this law, businesses operating on any electronic platform must be registered and obtain permission to trade goods or services. Small or home-based entrepreneurs registered with the relevant government authority will be allowed to sell through platforms such as TikTok, Instagram, and Facebook. Those who do not have their own platforms will need to register as small or micro-enterprises to sell through social media. Online business platforms must register with the Department of Commerce, Supplies & Consumer Protection, but it remains unclear whether small and medium enterprises should register if they do not have their own platform. The electronic platform must be listed on the department’s electronic trade portal within three months of the law’s enactment.
The bill establishes that an online agreement between a buyer and a seller will be legally binding. Payment made for goods handed over to a carrier will be considered payment to the seller, and both electronic and physical payment methods will be accepted. If a buyer opts to collect goods from a sales center, the seller must ensure that arrangement. In cases where the delivered goods do not match the description, the buyer has the right to return them without use or damage, and the seller must accept the return. The seller is then obligated to provide a replacement item of equal value, including taxes. Electronic platforms must also ensure the confidentiality of information related to individuals conducting business.
For intermediary platforms, the law includes provisions requiring them to maintain transaction records for the period specified by tax law, secure guarantees if required, and avoid discrimination against sellers. Additionally, sellers must be verified before selling goods through intermediaries. All goods listed for sale must include proper descriptions, and businesses using an electronic platform must be registered. Sellers may also enter into separate agreements with courier services for the delivery of goods.
With these provisions, the E-Commerce Act, 2081, aims to establish a regulatory framework for Nepal’s growing online business sector, ensuring consumer protection, fair trade practices, and accountability in digital commerce.
