Section 94 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 94 is a single enabling sentence. For the purposes of preventing unfair trade practices in e-commerce and direct selling, and protecting the interest and rights of consumers, the Central Government may take such measures in the manner as may be prescribed. The section itself lists no obligations. What businesses must actually do comes from the rules made under the Act. If your business sells online or through a network of sellers, our legal consultation team can help you map the rules to your operations.
Section 94 says that, to prevent unfair trade practices in e-commerce and direct selling and to protect the interest and rights of consumers, the Central Government may take such measures in the manner as may be prescribed. It sets no duty, fine or procedure itself. The measures and their manner come from rules (listed as a rule-making head in section 101(2)(zg)), which are not part of the text of the Act.
The section in one table
| Part of the text | What it means |
|---|---|
| "For the purposes of preventing unfair trade practices in e-commerce, direct selling" | The aim: stop unfair trade practices in these two fields |
| "and also to protect the interest and rights of consumers" | A second aim: protect consumer interests and rights |
| "the Central Government may take such measures" | Only the Central Government; "may", so discretionary |
| "in the manner as may be prescribed" | The rules set out the manner |
The full text: "For the purposes of preventing unfair trade practices in e-commerce, direct selling and also to protect the interest and rights of consumers, the Central Government may take such measures in the manner as may be prescribed."
What the section does
It gives the Central Government a power. It does not itself regulate any seller or platform. A reader looking for the duties of a marketplace, such as what to display or how to handle complaints, will not find them in section 94. Those details are in rules made under the Act. This article names them only in general terms, as the E-Commerce Rules, and the Direct Selling Rules; they are not in the source text and so are not described here. For a general account on this site, see E-Commerce Consumer Protection Rules 2020.
Three points on the wording:
- Central Government only. The State Governments are not named, though section 102 gives them rule-making power for other matters.
- "May take such measures". The measures are not listed. The section does not say whether they must be rules, orders or something else; it says "in the manner as may be prescribed".
- "Etc." in the heading. The marginal heading reads "Measures to prevent unfair trade practices in e-commerce, direct selling, etc." The body of the section names e-commerce and direct selling and uses no other category; the "etc." is in the heading only.
The two fields in the Act's own words
Section 2 defines both terms:
| Term | Definition (section 2) |
|---|---|
| E-commerce, clause (16) | Buying or selling of goods or services including digital products over digital or electronic network |
| Electronic service provider, clause (17) | A person who provides technologies or processes to enable a product seller to engage in advertising or selling goods or services to a consumer, and includes any online market place or online auction sites |
| Direct selling, clause (13) | Marketing, distribution and sale of goods or provision of services through a network of sellers, other than through a permanent retail location |
Section 94 does not use the term "electronic service provider", but the definition shows who sits on the platform side of e-commerce. For the full list of definitions, see our article on the remaining definitions in section 2.
"Unfair trade practices" in the Act
"Unfair trade practice" is defined in section 2(47) as a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice, including the practices listed there. Examples in that list include false representations about goods or services, not issuing a bill or cash memo or receipt in the prescribed manner, and refusing to take back defective goods or refund within the stipulated period or thirty days. Our existing post on unfair trade practices under CPA 2019 goes through the list.
The definition applies to all trade practices, not only to online or network sales. Section 94 simply points the Central Government's measures at two settings where such practices are a particular concern.
How section 94 links to other provisions
| Provision | Link |
|---|---|
| Section 101(2)(zg) | Lists "the measures to be taken by the Central Government to prevent unfair trade practices in e-commerce, direct selling under section 94" among the heads on which rules may be made |
| Section 65(2) | Notice may be served on an electronic service provider at the address on its platform, and the provider shall designate a nodal officer; see section 65 on service of notice |
| Section 105 | Rules and regulations are laid before Parliament |
| Section 18 and sections 19–22 | Powers of the Central Authority; they are in the Central Authority chapter and are not repeated here |
The Central Authority's powers over unfair trade practices are in Chapter III and are separate from section 94, which gives power to the Central Government.
What the text leaves out
- The measures themselves. The section names no measure, whether a registration scheme, disclosure duties or a grievance mechanism.
- Penalties. Section 94 prescribes no penalty. A breach of rules made under it is not stated to be an offence in this section.
- Which businesses. It does not say whether an overseas platform serving Indian consumers is covered. Section 86(d) mentions a manufacturer not subject to the law in force in India, but that is a different provision.
- Direct selling rules. The section does not describe how direct selling is to be regulated.
- Any complaint route. How a consumer complains about an e-commerce practice is dealt with in the complaint provisions of the Act, not in section 94.
Example. A marketplace operator asks, "Does section 94 require us to display seller details?" The honest answer is that section 94 itself requires nothing. The question must be answered by the rules made under the Act, which should be read in their current form. This article does not state their content.
Need help with e-commerce or direct selling compliance?
Compliance in these fields lives mostly in the rules, so the work is to read the current rules against how you actually operate. Our team can help you map them to your business and consumer-facing processes. Start with a legal consultation and bring your terms, seller agreements and complaint-handling process.
Key takeaways
- Section 94 empowers the Central Government to take measures, in the manner prescribed, against unfair trade practices in e-commerce and direct selling.
- The section imposes no duty or penalty itself.
- The measures come from rules, listed in section 101(2)(zg).
- E-commerce, electronic service provider and direct selling are defined in section 2.
- Check the rules in force for the actual requirements.
Read next
- Sections 92–93: cognizance of offences and vexatious search
- Sections 95, 97 and 98: public servants, penalty fund and good faith protection
- E-Commerce Consumer Protection Rules 2020
- Consumer Protection for Online Transactions
Disclaimer: Based on the Consumer Protection Act, 2019 as enacted, as consulted on 1 October 2026. Monetary limits, fees and procedure are set or revised by rules and regulations made under the Act and should be checked in their current form. This article is general information, not legal advice; check the official text before acting.