On March 2, 2025, Nepal’s upper house passed the Electronic Commerce Bill, 2080, after the lower house approved it on February 18, 2025. The law seeks to regulate the rapidly growing online marketplace by clearly defining the roles and responsibilities of sellers, buyers, and intermediary platforms.
The key highlights of the bill are as follow:
Definition of e-commerce: The bill defines e-commerce as the buying and selling of goods and services through online platforms. However, platforms that provide information or promote goods and services without facilitating transactions will not be considered e-commerce businesses under the law.
Registration requirement: Only registered and authorized entities can operate e-commerce. E-commerce operators must display various details on their platforms, including business registration information, the names of the business entity’s proprietor, representative, and management team, as well as additional contact details for addressing grievances, details about the intermediary business or entity involved in the transactions, among others.
Mandatory business registration: All e-commerce entities must register on the electronic platform/system of the Department of Commerce, Supplies, and Consumer Protection. A registration number must be displayed on the portal.
Penalties for violations: Failure to register an online business, provide transparency regarding the goods and services offered, or get listed in the concerned authority for electronic business can lead to fines ranging from NRs 10,000 to NRs 50,000.
Similarly, e-commerce operators found violating other law’s provisions may face prison sentences of two to three years, along with fines ranging from NRs 300,000 to NRs 500,000.
Updates and changes: Any changes to information regarding goods and services must be updated within 24 to 48 hours.
Clear agreements: Buyer-business agreements must be clearly outlined on the platform, including terms related to delivery time, refund, cancellation, warranty, and other transaction conditions.
Buyer confirmation: Buyers must receive immediate confirmation and an invoice after payment. Buyers are entitled to request refunds if delivered goods differ from the provided details (including price, delivery charges, delivery time, warranty, or production details).
Foreign transactions: Foreign transactions must comply with federal regulations. Platforms must ensure compliance with these regulations before processing any foreign transactions. Foreign entities can import goods/services through authorized electronic payment channels.
Confidentiality and data protection: Buyer information must be kept secure and confidential. Breaching confidentiality will result in penalties imposed by federal authorities.
The bill is initiated to boost consumer trust in online businesses.
However, few consumers argue that the law still lacks strong measures against predatory pricing and data privacy concerns and may discourage small businesses from entering the digital marketplace.
