e-Commerce Bill Nepal (2025)

In March 2025, Nepal's Parliament approved the Electronic Commerce (e-commerce) Bill, marking an important step in managing online trade in the country. This law aims to set clear rules for e-commerce activities, protecting customers and encouraging fair business practices.

Key Provisions of the E-Commerce Bill

The eCommerce bill was first introduced in the National Assembly on Asar 12, 2080 (June 26, 2023) and approved by the upper house on Kartik 16, 2080 (November 2, 2023). After nearly 16 months, the House of Representatives passed the bill with changes to make it more consumer- and technology-friendly. Let's take a look at some of the key points in the eCommerce Bill that were recently approved by Parliament.

Mandatory Registration: All online businesses must register with the Department of Commerce, Supplies, and Consumer Protection. This includes businesses that sell through social media platforms like TikTok, Instagram, and Facebook. If you don't register, you may face fines between Rs 10,000 and Rs 50,000.

Legal Agreements: The bill says that agreements between online platforms and sellers must be made in writing or online. This makes sure that everyone is legally responsible for their actions, helping to create transparency and accountability in online transactions.

Consumer Rights: Consumers have the right to return products that do not match their descriptions without any penalty. In these cases, the seller must accept the return and give a replacement item of the same value, including taxes.

Data Privacy: E-commerce platforms are required to keep the personal information of people involved in business transactions private. This rule is designed to protect consumer data and build trust in online shopping platforms.

Penalties for Non-Compliance: Businesses that operate without proper registration or do not meet their duties may face fines between Rs 50,000 and Rs 500,000, jail time from six months to three years, or both, depending on how serious the offense is.

Impact on Small and Home-Based Entrepreneurs The bill acknowledges the role of small or home-based entrepreneurs by allowing those registered with the relevant government authority to trade via platforms like TikTok, Instagram, and Facebook. This provision ensures that micro and cottage industries can participate in the digital economy without the burden of establishing their own ecommerce platforms.

Industry Reactions While the bill has been praised for bringing order to the e-commerce sector, some people have raised concerns. Critics say that some parts of the bill, like strict penalties and mandatory registration rules, may create difficulties for small sellers and new entrepreneurs. They suggest a more balanced approach that takes into account the different types of e-commerce businesses and supports all players.

Criticism

After the bill was passed, local businesses and small-scale eCommerce owners started raising concerns. Some say the bill doesn't consider their interests or opinions. Other business owners feel the Parliament made a mistake by passing the bill without properly analyzing the eCommerce infrastructure.

Proprietary Privacy Some small businesses in Nepal are concerned about the rule requiring Pvt. Ltd. companies to show owner details, including phone numbers and emails, on their websites. They argue that since they are not publicly listed, this goes against their privacy and interests.

Bills Fails to Classify eCommerce Model The bill fails to classify common eCommerce models in Nepal, such as D2C, C2C, and B2B. Defining each model would provide clarity and help small businesses differentiate themselves.

Building a website and mobile application A single-page site can be built within a budget of 5,000 or close to that. However, building a fully functional eCommerce site at that price is nearly impossible; it costs in the lakhs. According to the bill, technical assets like building an eCommerce site and an application are required for eCommerce businesses in Nepal.

Payment Partner Accountability Once an eCommerce site integrates with a payment partner, the payment partner should be responsible for addressing customer complaints if payment is made but the product is not delivered as promised. This issue is currently not addressed in Nepali eCommerce laws.

Guarantee of Product Another issue not addressed in the bill is the topic of "guarantee." The Consumer Act states that the eCommerce business, as the intermediary, is responsible for the guarantee or warranty of the product. However, business owners in Nepal argue that they should not be held accountable since they do not manufacture the products.

Conclusion

Nepal's E-Commerce Bill aims to protect consumers, ensure fair competition, and build trust in the digital market. Ongoing discussions will be key as e-commerce grows.

The bill is under final review in the National Assembly. If approved, it will go to the President and become law. While the law is in place, guidelines are still being developed. Hopefully, small business concerns will be addressed soon.