Kathmandu – The government of Nepal has introduced a new law to regulate online business practices, specifically targeting fake reviews and misleading advertisements. The newly enacted “Electronic Commerce Act 2081” strictly prohibits business owners from posting fake reviews or comments about their own products and services. This law, recently certified by the President, aims to enhance transparency and protect consumers from misleading information.

What Does the Law Say?

The law clearly states that businesses cannot post reviews about their own products or services under a false identity. According to Section 15 (Responsibilities of Online Business Operators) and Section 16 (Responsibilities of Sellers), business owners are prohibited from:

• Writing their own reviews or comments on products or services listed on their platform.
• Using fake consumer identities to create deceptive evaluations or ratings.

Violating these provisions will be considered a punishable offense under Sections 21 and 23 of the Act.

Strict Penalties for Violations

Businesses or individuals found guilty of posting fake reviews, misleading advertisements, or violating customer rights may face severe consequences, including:

• A fine ranging from NPR 50,000 to NPR 500,000.
• Imprisonment for up to three years.
• In some cases, both penalties may apply.

Other Key Offenses Under the Law

The Act also imposes strict penalties for other unethical business practices, such as:

• Failing to honor warranties or guarantees on sold products.
• Discriminating between different sellers of the same category of products.
• Refusing to accept returns, exchanges, or refunds for defective or misrepresented products.
• Providing misleading product details in advertisements.
• Deliberately delaying delivery or delivering faulty products.
• Avoiding responsibility for product authenticity after making a commitment.
• Engaging in unfair trade practices when selling through online platforms.

Why This Law Matters

Fake reviews and deceptive advertisements have become a growing concern in the e-commerce industry. Consumers often rely on online feedback before making purchases, and dishonest practices can lead to loss of trust in digital marketplaces. With this law, Nepal aims to create a fair and transparent online business environment, ensuring consumer rights are protected.

This move is expected to encourage ethical online trade and hold businesses accountable for their marketing practices. Sellers and business operators are advised to comply with the new regulations to avoid penalties and maintain customer trust.