Delhi HC seeks response from Center on plea challenging consumer protection (e-commerce) laws.

New Delhi (India), November 23 (ANI): The Delhi High Court on Monday asked the central government to respond to the plea challenging Rule 4(1). 1 letter (a) Consumer Protection (E-Commerce) Rules, 2020 Notice of 23 July 2020

The division comprising Chief Justice DN Patel and Justice Prateek Jalan, while issuing a notice to the respondent Union of India, refused to stay the decision on the notice and remanded the matter for further hearing on December 21.

The petition filed by one Dhruv Sethi through senior advocate Anand Grover challenges a section of the Consumer Protection (E-Commerce) Rules, 2020, which makes it mandatory for all e-commerce entities to register a company under the Companies Act, 2013.

This rule was challenged under sub-clause (zg) of sub-section (2) of Art. 101 Consumer Protection Act 2019

The petitioner argued that the challenged provision concerned him personally because he was an entrepreneur who sold non-standard goods on the Internet through his sole proprietorship “Where Next Daily”. The objection stated that the challenged provision violates Art. 19 section 1 letter g) of the Constitution of India as it restricts the petitioner’s right to trade through the Internet.

The objection further states that the obligation to establish a company and the resulting exclusion of sole proprietorships and limited liability companies from the e-commerce space is neither justified nor in the interest of the general public.

It was also argued that the challenged provision violates Art. 14 of the Constitution, because it discriminates against all forms of legal business organizations. (OR)