Swiggy, Zomato, Uber eats, we are all familiar with the major players in the e-commerce food business sector in India. After all, the e-commerce food business operators did become a popular choice in the midst of a pandemic, because of their affordable rate and swift delivery system.
With the emergence of various e-commerce food business operators through portals in India, and lack of specific regulations to have a regulatory control upon the quality and safety of food, the Food Safety and Standards Authority of India (FSSAI), issued guidelines to have a proper mechanism in place for the Food Business Operators (FBO) in the e-commerce sector under Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2018. It widened the ambit of its applicability towards all e-commerce FBO carrying any activity ranging from manufacturing to processing to packaging and distribution or importing of food, including catering services, and those involved in the sale of food or its ingredients. There are several laws applicable to the E-Commerce Food Business Operators which are critical to the operations, some of them are mentioned below:
Key laws Applicable to Food Business in India:
- Food Safety and Standards Act, 2006
- Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011
- Food Safety and Standards (Packaging and Labelling) Regulations, 2011
- Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011
- Provisions in the Indian Penal Code on Food Adulteration
- Consumer Protection (E-Commerce) Rules, 2020
Knowing the law is one critical aspect but compliance under the above said laws becomes even more crucial in a highly regulated industry. Off-hand any E-commerce FBO should be mindful of the below key compliances:
Obtain License and display it on their e-commerce platform: The e-commerce food business operators must obtain a license through Food Safety and Compliance System (FoSCos) and are required to display the same on their e-commerce platforms.
Ensure vendors/third parties are compliant with the FSSAI Regulations: The e-commerce FBO needs to enter into an agreement with the vendors (sellers/owners/manufacturers) to ensure that the vendors are compliant with the food safety acts and regulations. They also need to ensure that the food articles which they have been kept safe and in accordance with the food safety acts, rules and regulations.
Prohibition on manufacture/sale/distribution of article of food which is unsafe/substandard/misbranded: All e-commerce FBOs are prohibited from manufacturing, selling, and distributing an article of food that is not safe for consumption or misbranded.
Conditions to be fulfilled in case of selling a pre-packed food online: A clear picture must be displayed of the pre-packed food intended to be sold by the manufacturer/seller. Also, the lot number, batch number, expiry date, best before and MRP should be displayed in the portal.
Delist food products not compliant with the Food safety legislations: Any food product which is listed in the online platform and not compliant with the food safety norms, must be delisted immediately.
Adhere to basic hygiene and sanitary practices: The basic hygiene and sanitary practices as mentioned under Schedule IV of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011[2] must be adhered to by the e-commerce FBO.
Display FSSAI license of all the entities engaged in food business listed in their portal: All e-commerce FBO are required to display the FSSAI license of the food entities which is listed on their platform.
Refrain from displaying misleading or false information about a food product/brand: The e-commerce FBO must refrain from providing any false or misleading information about the manufacturer or brand or the food product in their portals.
As one can witness the large list of norms and the compliance regulations an e-commerce FBO is required to follow, it becomes supercritical to have a proper compliance management system in place to avoid any legal risk associated with non-compliance. Establishing a compliance culture in the e-commerce food business and having a proper compliance management system in place is a must to avoid any legal and penal consequences, and to keep intact the overall reputation of the organization.
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Written by: Amanya Gangawat
Reviewed by: Anchal Sharma
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