If you have ever bought something through Daraz online shopping, scrolled through listings on Hamro Bazar, or run your own online business in Nepal, chances are you’ve encountered at least one frustrating experience.

Maybe you placed an order on a Facebook or Instagram page posing as an online store, only to be left empty-handed, no product delivered, no refund, and no way to trace the seller. These types of unregistered and unregulated online businesses have become alarmingly common, catching thousands of Nepali consumers off guard.

Even with registered platforms like Daraz, where you expect more structure and reliability, issues such as product quality mismatch, late deliveries, difficulty in getting refunds or exchanges, and poor after-sales support remain persistent.

Until now, there was no specific law in Nepal to govern these issues, leaving both buyers and sellers in a grey area with no formal accountability mechanism.

But change is finally here, and now, it’s official.

After 25 years since Nepal’s first online store, Muncha.com, was launched, the country has finally enacted its first comprehensive E-Commerce Act. The E-Commerce Bill, authenticated by the President on 2081/12/03, will become fully effective after 31 days from the date of authentication. This new law brings long-overdue structure, accountability, and consumer protection to Nepal’s rapidly growing digital marketplace.

In this article, we will walk you through everything you need to know about this new law — especially how it impacts users of Daraz online shopping, Hamro Bazar, Daraz customer care, and anyone involved in or planning to start an online business in Nepal.

Why This Law Matters: Bridging the Gap Between Growth and Regulation

E-commerce in Nepal has grown significantly over the years. Platforms like Daraz, Hamro Bazar, and other digital marketplaces have made online shopping part of everyday life. Many entrepreneurs have started their own online businesses in Nepal, ranging from social media storefronts to full-fledged e-commerce websites.

Yet, in the absence of a formal law, several challenges persisted:

• Wrong or damaged deliveries
• Lack of refund and return mechanisms
• Price manipulation and fake discounts
• No legal accountability for sellers or delivery agents

The E-Commerce Act now provides a legal framework to address these issues, helping both consumers and businesses operate in a more secure and fair online environment.

What the E-Commerce Act Covers: A Simple Breakdown

1. What Qualifies as an E-Commerce Business?

The Act defines e-commerce as the buying and selling of goods and services through digital platforms such as:

• Websites
• Mobile apps
• Online marketplaces like Daraz online shopping or Hamro Bazar

Platforms that only promote or provide information without facilitating transactions are not considered e-commerce businesses under this law.

2. Online Intermediaries and Marketplaces

Platforms like Daraz, SastoDeal, and Foodmandu that connect buyers and sellers are classified as online intermediaries. These platforms are now legally responsible for ensuring:

• Fair business practices
• Proper product listings
• Timely deliveries

This classification also includes smaller marketplaces that operate on a Daraz online shopping-style business model.

3. New Responsibilities for Platforms and Sellers

A. Mandatory Registration with Authorities

All e-commerce businesses must register with the Department of Commerce, Supplies, and Consumer Protection. Non-compliance can lead to fines ranging from NPR 10,000 to NPR 50,000.

This regulation boosts consumer trust and ensures transparency on platforms like Daraz and Hamro Bazar.

B. Legally Binding Digital Transactions

Every online order and transaction is now recognized as a legally binding digital contract between the buyer, seller, and the platform. This change strengthens buyer rights and obligates platforms like Daraz online shopping to comply with consumer protection standards.

C. Refund and Return Rights for Buyers

Buyers now have the legal right to claim a refund or return under these conditions:

• Incorrect size, color, model, or brand
• Wrong product description or hidden delivery charges
• Delayed delivery
• Invalid warranty or guarantee
• False manufacturer or origin details

These rules apply to large platforms like Daraz and individual sellers on Hamro Bazar. Sellers cannot deny refunds in these cases.

4. Consumer-Friendly Payment Mechanism

A. Payments Made to Delivery Agents Are Legally Valid

If a consumer pays the delivery person instead of the seller directly, the payment will still be legally considered as made to the seller. This simplifies the payment process and ensures consumer protection.

This clarification also strengthens accountability at Daraz customer care, especially for resolving payment-related disputes.

5. Product Information Transparency

A. Mandatory Update of Listings

Sellers must update product information within 48 hours if there are changes in:

• Price
• Product specifications
• Availability

This ensures buyers on Hamro Bazar and Daraz online shopping are always accessing accurate and up-to-date information.

6. Penalties for Non-Compliance

A. Legal Consequences for Violations

Failure to comply with the law can result in:

• Fines ranging from NPR 300,000 to NPR 500,000
• Up to three years in prison
• Or both, depending on the severity of the offense

These strict penalties will help maintain ethical standards in the digital marketplace.

7. Inclusion of Micro and Cottage Entrepreneurs

The law allows small and cottage entrepreneurs to sell through third-party platforms like Daraz and Hamro Bazar, without needing to build their own e-commerce sites. This promotes digital inclusion and economic participation from rural and home-based businesses.

What’s Still Missing from the Act?

Despite its comprehensive nature, the Act has some gaps:

• No mechanism to regulate unfair price competition
• No legal framework for data privacy and protection
• No clarity on cross-border digital trade or taxation

These areas may require additional laws or future amendments.

Summary Table: Who Benefits and How

Implementation and Enforcement: What to Expect

The effectiveness of this law will depend on its enforcement. Historically, Nepal has struggled with implementing consumer protection laws.

To ensure success, the government must:

• Conduct regular inspections
• Launch public education campaigns
• Strengthen digital grievance redress systems, especially for platforms like Daraz online shopping

Frequently Asked Questions (FAQs)

When will the E-Commerce Act come into effect in Nepal?
It will be effective 31 days after the date of authentication by the President i.e. 2081/12/03.

Do sellers on Hamro Bazar need to register?
Yes. All sellers on any online platform must register with the government.

Will Daraz customer care responsibilities increase under this law?
Yes. Daraz customer care is now legally responsible for managing returns, refunds, and complaints and failure to comply will lead to fines and penalties.

Can buyers get a refund if the product does not match the online listing?
Yes. Refunds are mandatory if the product fails to meet the listed criteria.

Conclusion: A New Era for Digital Commerce in Nepal

Nepal’s E-Commerce Act is a transformative step toward building a secure, fair, and inclusive digital economy. Whether you shop on Daraz online shopping, browse products on Hamro Bazar, or run an online business in Nepal, this law offers enhanced protection and clearer regulations for all stakeholders.

While future improvements are necessary to address data privacy and price competition, this law sets a solid foundation for Nepal’s e-commerce ecosystem.

Additional Resources:

• Difference Between PAN and VAT Registration for Businesses in Nepal: A Comprehensive Guide for New Business Owners

• Private Company Registration in Nepal- The Ideal Business Structure to Kickstart Your Entrepreneurial Journey