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"Definitions:

i. E-Commerce- E-commerce means buying and selling of goods and services including digital products over digital & electronic network. ii. E-commerce entity- E-commerce entity means a company incorporated under the Companies Act 1956 or the Companies Act 2013 or a foreign company covered under section 2 (42) of the Companies Act, 2013 or an office, branch or agency in India as provided in section 2 (v) (iii) of FEMA1999, owned or controlled by a person resident outside India and conducting the e-commerce business.

iii. Inventory based model of e-

commerce- Inventory based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly. iv. Marketplace based model of e-

commerce- Marketplace based model of e-commerce means providing of an information technology platform by an e- e-commerce entity on a digital & electronic network to act as a facilitator between buyer and Seller.

5.18. That subsequent to the enactment of the Consumer Protection (E-Commerce) Rules, 2020, a distinction has been drawn between marketplace e-commerce websites (such as Snapdeal, Amazon and Flipkart) and inventory e-commerce websites (such as Lifestyle and Decathlon).

5.19. Rule 5(1) of Consumer Protection (E-

Commerce) Rules, 2020, specifically provides that in order to claim an exemption under Section 79 of the Information Technology Act, 2000 as regards a marketplace e-commerce entity, Snapdeal has complied with the requirements of sub- sections (2) and (3) of Section 79, as well as the Information Technology (Intermediaries Guidelines) Rules, 2011. Rule 5(1) of the Consumer Protection (e-commerce) Rules, 2020, is reproduced hereunder for easy reference.

12.8. It cannot be expected that the provider or enabler of the online marketplace is aware of all the products sold on its Website. It is only required that such provider or enabler put in place a robust system to inform all sellers on its platform of their responsibilities and obligations under applicable laws in order to discharge its role and obligation as an intermediary. If the same is violated by the Seller of goods or service such seller can be proceeded with but not the intermediary. 12.9. The manner in which the above documents have been executed, contents thereof as also the obligation of the parties stated therein establishes the due diligence exercised by Snapdeal to be in accordance with and compliance of Section 79(2)(c) of the Information Technology Act, 2000, read in conjunction with the Information Technology (Intermediaries Guidelines) Rules, 2011, in ensuring that Vendors/Sellers who register on its Website conduct themselves in accordance with and in compliance with the applicable laws. 12.10. The Consumer Protection (E-Commerce) Rules, 2020, makes a distinction between marketplace e-commerce websites and inventory e-commerce websites. As such Snapdeal would come within the meaning of a marketplace e-commerce website, thereby affording the above exemption to Snapdeal so long as the requirements under section 79 are followed by Snapdeal.