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POLICY POLICY · 2 MIN READ

Indian e-commerce enforcement highlights seller KYC and counterfeit challenges

A closed-door discussion involving brand owners, law firms, customs officials, and intellectual property offices focused on the challenges of seller verifi…

A closed-door discussion involving brand owners, law firms, customs officials, and intellectual property offices focused on the challenges of seller verification and counterfeit listings in Indian e-commerce. The event, held under Chatham House Rules, revealed that platforms control seller data and onboarding incentives without external accountability, raising concerns about the effectiveness of current enforcement mechanisms, according to medianama.com.

Participants criticized the structural weaknesses in know-your-customer (KYC) processes, noting that registered seller addresses often prove to be non-existent or empty plots. The group advocated for continuous, risk-weighted KYC verification rather than a one-time check at onboarding. They also highlighted how networks of intermediaries use fabricated brand authorization letters to reinstate flagged sellers on platforms, complicating enforcement efforts, medianama.com reported.

These enforcement challenges underscore the difficulty in tackling counterfeit goods on Indian e-commerce platforms. The lack of external oversight over platform-held data and seller onboarding processes creates gaps that counterfeit sellers exploit. The discussion reflects growing calls for regulatory reforms to enhance transparency and accountability, aligning with broader efforts to protect intellectual property rights and consumer trust in the sector, medianama.com noted.

The conversation emphasized that strengthening KYC protocols and increasing platform accountability are critical to curbing illicit trade online. The group’s consensus supports moving toward continuous verification systems, especially targeting sellers with prior counterfeit complaints, as a necessary step to improve enforcement outcomes, according to medianama.com.

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