The concept 'fallback liability', recently in the news, is in relation

The concept ‘fallback liability’, recently in the news, is in relation to :

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the Central Government grants to States.

business of e-commerce companies.

recapitalisation of public sector banks.

merger of small banks with big banks.

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This question was previously asked in

UPSC CISF-AC-EXE – 2022

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The concept of ‘fallback liability’ became prominent in relation to the Consumer Protection (e-Commerce) Rules, 2020 in India. It refers to the potential liability of an e-commerce entity (the marketplace) if a seller on its platform fails to deliver goods or services as promised, and the e-commerce entity fails to resolve the consumer’s grievance within a specified time frame.

– Fallback liability relates to the responsibility of e-commerce marketplaces.
– It arises when sellers on the platform fail to meet their obligations.
– It implies that the e-commerce platform may become liable if it doesn’t address consumer grievances related to such failures.

This rule was introduced to provide greater protection to consumers shopping on e-commerce platforms and ensure that marketplace entities take responsibility for the transactions facilitated through their platform, especially concerning seller defaults or non-compliance.

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