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The concept 'fallback liability', recently in the news, is in relation to :
Explanation
The concept of 'fallback liability' was introduced in the draft amendments to the Consumer Protection (E-Commerce) Rules, 2020, proposed by the Ministry of Consumer Affairs, Food and Public Distribution. It refers to the liability of an e-commerce marketplace entity (such as Amazon or Flipkart) for the non-delivery of goods or services by a seller registered on its platform, which results in a loss to the consumer.
Under this provision, if a seller fails to deliver the promised goods or services due to negligent conduct or omission, the e-commerce platform will be held responsible. This measure is designed to protect consumer interests and ensure that marketplace platforms take greater responsibility for the conduct of third-party sellers, preventing them from evading accountability by claiming they are merely intermediaries.