Govt enforces strict e-commerce rules; unregistered platforms face shutdown

KATHMANDU: The government has introduced a stricter regulatory framework for Nepal’s rapidly expanding digital marketplace, making registration mandatory for all online businesses and warning that non-compliant platforms could be shut down.

The Ministry of Industry, Commerce and Supplies has issued the Electronic Trade (E-Commerce) Directive 2082, bringing all digital commerce operators under formal regulation in an effort to improve transparency, consumer protection, and tax compliance.

The directive, approved by Industry Minister Anil Kumar Sinha, has come into immediate effect under powers granted by Section 37 of the Electronic Trade Act 2081.

Mandatory registration within seven days

Under the new rules, every e-commerce business must register its firm through the online portal of the Department of Commerce, Supplies and Consumer Protection.

Officials are required to issue a listing number within seven days after receiving a complete application.

If a firm is found operating without registration, inspection officers can order it to comply within seven days. Failure to do so will allow authorities to initiate action to remove or shut down the platform itself.

Registration may also be revoked if a business deliberately provides misleading information, applies for cancellation on its own, or violates regulatory conditions.

Record-keeping and data protection made compulsory

The directive obliges online sellers to maintain transaction records, invoices, complaint logs, and response details for at least five years.

It also introduces strong digital security provisions. E-commerce platforms must ensure confidentiality of users’ personal information, including passwords, phone numbers, addresses, and birth dates. Such sensitive data must be stored in encrypted form.

Businesses are also required to adopt technical and managerial safeguards to prevent unauthorized access, misuse, or data breaches. In the event of system failure or information leakage, operators must suspend transactions immediately, resume services only after recovery, and publicly notify users.

Tightened pricing, billing, and payment rules

The directive bars sellers from charging any amount beyond the pre-declared price and delivery cost of goods or services.

All e-commerce operators must use digital payment gateways approved by Nepal Rastra Bank for business transactions. Even when payments are made in cash, businesses must issue electronic invoices.

Where refunds are required, sellers must return the amount within seven days.

The directive also prohibits misleading or exaggerated advertisements on e-commerce platforms.

Regular inspections and mandatory grievance system

Authorities will deploy inspection officers to conduct routine monitoring of online firms. The directive allows inspection teams to include cybersecurity experts, IT specialists, consumer rights advocates, and tax officials when necessary.

Businesses must provide requested documents during inspections.

Each e-commerce platform must also maintain an online complaint handling mechanism. Complaints must be resolved within 15 days. If unresolved, consumers can escalate the issue to the department, where a special committee led by a departmental director will handle dispute resolution.

Strong signal of tighter digital market oversight

The directive marks one of Nepal’s most comprehensive attempts to formalize its growing online trade sector, which has expanded rapidly but largely without structured oversight.

Officials say the new framework is aimed at strengthening consumer trust, preventing fraud, improving tax compliance, and aligning Nepal’s digital economy with international regulatory standards.