Kathmandu, July 21: Nepal has made it illegal for online sellers to operate without registration. The regulation came into effect on Sunday, July 20. This includes individuals or businesses selling through Facebook, TikTok, Instagram, WhatsApp, and even global platforms like Amazon if they lack official registration or a local presence.

The Department of Commerce, Supplies, and Consumer Protection clarified that the rule excludes businesses launched after July 18, which still have time to register. By the final deadline on Friday, only 950 e-commerce firms had complied, far below expectations given Nepal’s booming online trade.

The E-Commerce Act of 2025—enforced since April 15—gave businesses three months to register. Violators now face fines of up to Rs200,000. “Any unregistered seller found operating will be penalized,” said department director Achyut Raj Regmi.

The law mandates registration for all digital sellers, domestic or foreign. On July 2, authorities issued a final call for registration. As of the deadline, no international platforms like Amazon had registered, technically making purchases from such sites illegal.

Nepal’s e-commerce sector, now worth billions of rupees, has long operated in a legal grey zone, dominated by informal social media sellers who avoid taxes and regulation. The new law is Nepal’s first serious step toward regulating the sector and addressing fraud.

Even individual sellers must now register online, disclosing their business name, registration number, address, platform, and a designated contact for complaints. They must also declare if their model is platform-based or listing-based.

Registered platforms must provide systems for handling consumer grievances. The law defines e-commerce strictly as transactional platforms, excluding sites that only advertise without sales.

Middleman platforms must sign formal contracts—both written and digital—with their vendors. The act also promotes participation from small and cottage industries in the digital economy.

Online businesses are now required to update key product information—pricing, stock, or specs—within 24 to 48 hours of any change. The law also enhances refund rights: buyers can demand full refunds if items differ from their descriptions in any aspect, including design, weight, warranty, or origin. Sellers cannot deny refunds for defective or delayed goods.

People’s News Monitoring Service