Legal, Tax and Compliance in E-Commerce (Overview): Consumer Protection, Privacy, Cybersecurity and Basics of GST/TDS Questions

Question 1

State one reason why compliance is important in e-commerce.

Accepted Answer

Compliance protects customers, builds **trust**, and helps avoid penalties and disputes (any one) (concept).

Question 2

Data minimization means collecting only necessary customer data. (True/False)

Accepted Answer

True. **Data minimization** reduces privacy risk by limiting data collection to what is needed (overview).

Question 3

State one example of transparency/disclosure in e-commerce.

Accepted Answer

Showing full **price breakup** (taxes + shipping/COD charges) and return policy clearly is a transparency disclosure (any one) (concept).

Question 4

HTTPS/TLS helps protect data in transit. (True/False)

Accepted Answer

True. **HTTPS/TLS encryption** secures data while it moves between browser/app and server (concept).

Question 5

Define grievance redressal mechanism (in e-commerce).

Accepted Answer

A **grievance redressal mechanism** is the process/system to receive, track, escalate and resolve customer complaints within a defined timeline (concept).

Question 6

GST is relevant to e-commerce transactions. (True/False)

Accepted Answer

True. **GST** applies to taxable supplies of goods/services and requires invoicing and return compliance (overview).

Question 7

List key disclosures that should be shown to customers in e-commerce (any three) using a table.

Accepted Answer

Key disclosures (concept):

| Disclosure | Example (concept) |
|---|---|
| **Price breakup** | taxes + shipping/COD charges |
| Delivery timeline | expected delivery date and serviceability |
| **Return/refund policy** | return window, conditions, refund timeline |
| Seller details (overview) | seller identity/contact where applicable |

Write any three.

Question 8

Explain any three privacy/data protection practices for e-commerce (use a table).

Accepted Answer

Privacy practices (overview/concept):

| Practice | Meaning (concept) |
|---|---|
| **Data minimization** | collect only necessary information |
| Access control | least privilege; restrict who can view data |
| Encryption | protect data in transit and at rest |
| Consent | opt-in for marketing communications |

Write any three points.

Question 9

List common cybersecurity risks in e-commerce and one control for each (any three) using a table.

Accepted Answer

Risks and controls (concept):

| Risk | Example | Control (concept) |
|---|---|---|
| **Phishing** | fake messages steal OTP | awareness + never share OTP + **2FA** |
| Account takeover | stolen password/SIM swap | login alerts + device checks |
| Data breach | exposed customer data | encryption + access control |
| Payment fraud (overview) | suspicious transactions | risk scoring + monitoring |

Write any three rows.

Question 10

Explain TDS/TCS in e-commerce in simple terms and add a small table.

Accepted Answer

**TDS/TCS** are mechanisms where tax is deducted/collected at the time of payment/transaction and deposited to the government (overview).

| Term | Basic meaning (overview) |
|---|---|
| **TDS** | tax deducted at source from payments (where applicable) |
| **TCS** | tax collected at source on transactions facilitated (where applicable) |

Note: For exams, explain the concept without deep sections unless asked.

Question 11

Write any three consumer rights in e-commerce and mention one example for each (use a table).

Accepted Answer

Consumer rights/examples (concept):

| Right | Example (concept) |
|---|---|
| **Right to information** | accurate product description and total price |
| **Right to refund/return** | refund within stated timeline after return |
| **Right to grievance redressal** | ticketing + escalation for complaints |
| Right to privacy (overview) | consent for marketing communications |

Write any three rows.

Question 12

Explain record keeping in e-commerce (any three records) and why it is required (use a table).

Accepted Answer

Record keeping supports audits and dispute resolution (overview).

| Record | Why needed (concept) |
|---|---|
| **Invoices** | proof of supply and tax calculation |
| **Returns/refunds logs** | reconciliation and customer disputes |
| Payment settlement reports | matching orders with payments |
| Complaint tickets | evidence for grievance redressal |

Write any three records with reasons.

Question 13

Explain consumer protection in e-commerce and grievance redressal (exam-style) with headings and a table.

Accepted Answer

### Consumer protection (key ideas)
Consumer protection ensures **fair practices**, accurate information, and safe transactions in e-commerce (concept).

### Grievance redressal
A good grievance system records complaints, resolves them within timelines and provides escalation (concept).

| Area | Good practice (concept) |
|---|---|
| **Transparency** | price breakup, delivery timeline, return policy |
| **Returns/refunds** | clear window + refund SLA |
| Redressal | ticketing + escalation + tracking |

Conclusion: Strong consumer protection increases trust and repeat purchases (concept).

Question 14

Discuss privacy and cybersecurity controls for an e-commerce platform (exam-style) with a table.

Accepted Answer

### Privacy and cybersecurity (overview)
E-commerce platforms handle sensitive customer data and payments, so they need strong controls to prevent fraud and data breaches (concept).

| Control | Purpose (concept) |
|---|---|
| **HTTPS/TLS encryption** | protects data in transit |
| Access control | restricts data access (least privilege) |
| **2FA/OTP** | prevents account takeover |
| Monitoring/alerts | detects suspicious activity |
| Patching/backups | reduces vulnerability and ensures recovery |

Conclusion: Strong privacy and security controls protect customers and maintain business continuity (concept).

Question 15

Write a brief note on tax compliance basics in e-commerce (GST + records) (exam-style) with a table.

Accepted Answer

### GST basics (overview)
E-commerce businesses must charge GST on taxable supplies where applicable and ensure proper **tax invoices**, return filing and reconciliation (overview).

### Records (overview)
Maintaining records supports audits and dispute resolution.

| Record | Why needed (concept) |
|---|---|
| orders + invoices | proof of supply and tax calculation |
| returns/refunds log | reconciliation and customer disputes |
| payment settlement reports | matching payments with orders |
| complaint tickets | evidence for grievance redressal |

Conclusion: Proper documentation reduces compliance risk and improves operational control (concept).

Disclosure	Example (concept)
Price breakup	taxes + shipping/COD charges
Delivery timeline	expected delivery date and serviceability
Return/refund policy	return window, conditions, refund timeline
Seller details (overview)	seller identity/contact where applicable

Legal, Tax and Compliance in E-Commerce (Overview): Consumer Protection, Privacy, Cybersecurity and Basics of GST/TDS

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