×

or

Online Food Business and Legal Compliance

Online Food Business and Legal Compliance

India is a country with ethnic diversity where food enjoys prominentplace. Food safetyisimportant social and health priority for the country. Over a period, Government of India has legislated lawstolay down standards for food in various stages of foodbusinessand to regulate them. It is pertinent to note that it shall be the duty of the State to raise the level of nutrition and the standard of living of its people and to improve public health, among other primary duties under the Article 47 of Constitution of India.

QUICK OVER VIEW OF THE LEGISLATIVE PROGRESS:

The laws regulating the quality of food have been in force in India since 1899 but until 1954, several states had their own laws regulating the same. The Government of India has enacted central legislation Prevention of Food Adulteration Act 1954 (PFA Act 1954) which repealed laws of different states regulating food quality till then. PFAAct 1954 came into force with a principal objectiveof prevention of adulteration of the food and setting standards among other related objectives.

There was still confusion among the traders, manufacturers and consumers due to multiplicity of laws and various implementation agencies involving in the enforcement. It was necessary to subsume all Acts and orders into an integrated Food Law which contains salient provisions of PFA Act 1954, ensures international practices and lays down science based standards for food and to regulate their manufacture, storage, distribution, sale and import ensuring availability of safe and wholesome food and therefore Government of India has enacted comprehensive legislation Food Safety and Standards Act 2006 (FSSA 2006), which repealed laws like PFA Act 1954 and all orders issued under the Essential Commodities Act, 1955.

The FSSA 2006 came with a legislative intent that no person shall commence or carry on food business except under the license or registration.Food Safety and Standard Authority of India (FSSAI) a Central Authority was established to regulate and monitor all stages of foodbusiness to ensure safe and wholesome food for Indian consumersand to achieve implementation of hygiene conditions.

In wake of the growth of online food business,the FSSAI has by an order on 2nd February 2017 issued guidelines for operation of E-Commerce Food Business Operators(Guidelines) in pursuance of the provisions of the FSSA 2006. The Guidelines is an explanatory memorandum which defines E-commerce and business models of E-commerce, while it clarifiesbroadly on the regulatory requirements such as registration and licensing requirement, supply chain compliance, food product listing and liability of Food Business Operator(FBO) and handling consumer complaints.

COMPLIANCE REQUIRED UNDER GUIDELINES:
  • The Guidelines clarifies on the licensing/registration requirement for the E-commerce FBOs involved in different stages of food business online and makes it compulsory for obtaining license except for the E-commerce entity which provides listing services to sellers/manufacturers on its platform. Sellers/Brand owners/manufacturers shall be required to display the license/registration obtained under the FSS Act 2006 and Regulations.
  • Under the said Guidelines for food product listing, the seller who display or offer any pre-packed food for sale to consumerseither through its own ecommerce platform or on the marketplace E-commerce platform, is required to ensure that a legible and clear picture ofprincipal display panel of such pre packed food is made available for viewing by the consumers. However, such display can be excluding batch number/lot number, best before, expiry date and MRP.

    Guidelines on display of principal display panel will ensuresconsumer isnot misled and instead helps consumerto make informed choice while placing order online as the nutritional values and list of ingredients also be displayed.The Guidelines requires mandatory food information of pre-packed food shall be provided to the consumers without charging any supplementary costs, and such information to be made available prior to purchases being concluded by consumers. However, it is sufficient for aSeller dealing in Fresh Produce to provide an indicative image of the same produce on the e-commerce platform enabling the consumers to recognise the product.

  • Every FBO shall ensure that the article of food satisfy the requirement of the FSS Act 2006, Rules and Regulations and shall not manufacture, sell or distribute any article of food which is unsafe, or misbranded or substandard or contains extraneous matter, or which a license is required, except in accordance with the conditions of the license. The marketplace E-commerce shall be required to execute agreement with Seller averring that the Seller is compliant with provisions of FSS Act 2006, Rules and Regulations including the compliance ofbasic hygiene sanitary practices applicable to such Seller.
  • Marketplace E-commerce platforms shall be required to delist the products which are non-compliant with the FSSA 2006, Rules and Regulations and shall cooperate with Consumers to enable satisfactory resolution of the Complaint by sharing with them relevant information of the Seller.
CONCLUSION:

The sale over internet is easy and cost effective for the seller on one hand and on the other hand it is equally convenient, simple and time saving for the consumers. With the food regulator monitoring the online food business operations, it shall be a game of trio, amongConsumer, Seller and Regulator to contribute to the growth of this sector. No doubt, the Guidelines are pro consumer and enhance better online shopping experience to a consumer but will be challenging to the e-commerce platform service providers to ensure compliances.

About Author

Panduranga Acharya

Panduranga Acharya has 13 years of experience as inhouse legal counsel including initial 2 years of litigation practice in Bengaluru Courts. He has served Real Estate, Telecom Retail, Telecom Services and Ecommerce Retail Sectors as inhouse counsel, and is currently GM-Legal with Swiggy.