Strict regulations imposed on e-commerce businesses

KATHMANDU: The government has issued a new directive to strictly regulate the rapidly growing e-commerce sector.

The Ministry of Industry, Commerce, and Supplies announced that all electronic business platforms must now be officially registered with the government, failing which they may face closure.

According to the directive, businesses conducting online trade of goods and services must register on the official government portal.

If an unregistered platform is identified, government inspection officials will order the firm to complete registration within seven days.

Platforms that fail to comply within the deadline may be shut down. The directive also outlines procedures for deregistration, including cases where firms provide false or misleading information or voluntarily request removal.

E-commerce businesses are required to fulfill all tax obligations under existing laws. The government will provide free services for registration, updating, and deregistration of platforms.

The directive mandates that all e-commerce businesses use only digital payment gateways approved by the Nepal Rastra Bank.
In cases where payment is made in cash, businesses must issue an electronic receipt. Refunds to customers must be processed within seven days.

Consumer data protection is a major focus of the new rules. Platforms must store sensitive personal information—including passwords, phone numbers, addresses, and birthdates—securely using encryption.

Other data must also be protected from unauthorized access, misuse, or leaks through proper technical and administrative measures.

In case of unauthorized access, data breaches, or platform failures, operations must be halted immediately and can resume only after full recovery. Platforms are also required to publicly inform users of such incidents.

Additionally, businesses cannot charge any extra fees beyond the agreed price and pre-determined delivery or transfer costs after goods or services have been provided.

The directive reflects the government’s effort to promote transparency, protect consumers, and ensure accountability in Nepal’s growing e-commerce sector.