E-Commerce FSSAI License

13 Jan, 2021

The term E-commerce means buying and selling of goods and services through the digital and electronic network. It doesn’t allow one to restrict its product in the local market, but to the customers around the globe. This way of doing business has changed the life of people across the world.As it is already, known that for every food business operator it is mandatory to obtain e-commerce FSSAI license, except online provider but with effect from 2^nd February,2017, FSSAI in order to ensure themselves that e-commerce food business operators maintain high quality and standard in providing their services has made it mandatory for them to obtain FSSAI Central license.

Business Model of E-commerce FBO

As per FSSAI following type of E-commerce FBO business model are covered under the act:

E-commerce entities providing listing services to sellers/ brand owners/ manufacturers/restaurants on their platform, by this, meaning they are also providing a platform for commerce to them.

Sellers, brand owner, manufacturer, vendors, importers, processors, packagers or manufacturers who exhibit or propose their food products, through the market-based model or the inventory based model of e-commerce.
Providing storage, operating and distribution services of the food products by the entities to the sellers, brand owners, vendors, importers or manufacturers who list their product with the e-commerce entity.
Providing transportation services to the sellers, brand owner, vendors, importers or manufacturers for delivering their product to the end consumers.

What are the Regulatory Requirements?

As per FSSAI act, all E-commerce FBOs shall be governed under Schedule-I of Food Safety and Standards (Licensing and Registration of Food Businesses] Regulation, 2011 and will have to obtain license from the Central Licensing Authority for the entire supply chain i.e. Head Office/ Registered Office, Manufacturers, Transportation, Storage, Distribution, etc.
It is mandatory for the e-commerce FBOs to ensure that the last mile delivery is undertaken by the trained delivery personnel for the safety of food production.

However, In case of e-commerce entities providing only listing/ directory services to sellers, restaurants, vendors, manufacturers or importers of food products then they are not required to obtain a E-Commerce FSSAI License/ registration Provided they have to ensure that no misleading statement/ false claims pertaining to the sellers/ brand owners, vendors, importers or manufacturers, or misleading images of food products made available or shown on their platform

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Supply Chain Compliance

All E-commerce FBOs are required to sign an agreement with the sellers/brand owners/manufacturers averring that the said sellers/brand owners/manufacturers have complied with all the requirements required in FSSAI act and rules and regulations made thereunder.

Food Product Listing and Information

E-commerce FBOs including sellers, brand owners, vendors, manufacturers, etc. who are indulged in displaying or offering any pre-packaged food for sale to customers, either on their own e-commerce platform or on the marketplace based model of e-commerce will need to put a clear and legible picture of the principal display panel
However, sellers, brand owners, vendors, manufacturers who are dealing in fresh produce will require providing an indicative image of the fresh produce they are selling to the e-commerce^[1] FBOs for displaying on their platform.
They are required to display their FSSAI Registration.
It is mandatory to provide food information as mentioned in the Act, Rules, and Regulations made thereunder to the consumer without charging any supplementary cost.

Liability of FBO

It is mandatory for all FBOs including sellers, brand owners, vendors, manufacturers, etc. to comply with the basic hygiene and sanitary practices mentioned in schedule 4 of the Food safety regulations, 2011.

Handling of Consumer Complaints:

Complaints related to product efficacy, quality shall be indicated immediately directly to the sellers, brand owners, vendors, and manufacturers for a speedy
Sellers, brand owners, vendors, and manufacturers are liable and bound to take necessary action against the complaint raised by the consumer
Complaints shall be redressed in the given timeline by the Ministry of consumer affair from time to time.

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In case of a recall, FSSAI said that e-commerce FBOs/entities will be obliged to desist immediately any food products listed on their platform, which are not in compliance with the Act.

Conclusion

Enterslice a legal technology company is there for helping those who want to start their E-commerce business in drafting their documents and as well as in complying with all legal requirements required for getting license or approvals from various departments. Detailed information is provided on our website i.e. www.enterslice.com.
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