Through an order issued on 2 February 2017 the FSSAI has drafted guidelines that will help e-commerce FBOs regulate their food businesses. All online e-commerce activities will be carried out under these draft guidelines and FBOs running e-commerce businesses online will have to comply with.  The FSSAI has given definitions the business models that will have to comply with these guidelines.

BUSINESS MODELS OF E-COMMERCE FBO

Marketplace based model of e-commerce FBO means providing an information technology platform on a digital and electronic network to act as a facilitator between the buyer and seller/ brand owner/ manufacturer.

Inventory based model of e-commerce FBOs means an e-commerce activity where inventory of food products and food services is owned by e-commerce FBO and is sold to the customers directly online.

E-commerce FBOs include

  • E-commerce entities providing listing services to sellers, brand owners, manufacturers, restaurants on their platform, thereby providing platform for commerce to the sellers, manufacturers, restaurants etc.
  • Sellers, brand owner, manufacturer, vendors, importers, processors, packagers or manufacturers who display or offer their food products, including food services, catering services, sale of food or food ingredients for sale to the customers, through either the market based model or the inventory based model of e-commerce.
  • Operating and providing storage and or distribution services to the sellers, brand owners, vendors, importers or manufacturers of the food products listed on their marketplace.
  • Providing transportation services to the sellers, brand owner, vendors, importers or manufacturers of the food products and/ or providing last mile delivery transportation to the end consumers.

Licensing and Registration

  • E-commerce FBOs shall be covered 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.
  • FSSAI has advised e-commerce FBOs to engage only trained delivery personnel for last mile delivery so as to maintain food safety.
  • However, if the e-commerce entities provide only listing/ directory services to sellers, restaurants, vendors, manufacturers or importers of food products then they are not required to obtain a license/ registration. However, these e-commerce entities shall ensure that their platforms do not display any
  1. misleading information/ false claims pertaining to the sellers/ brand owners, vendors, importers or manufacturers, or
  2. misleading images of food products made available or shown on their platform

These e-commerce entities shall specify clearly that violation of FSS Act, Rules and Regulations lies with the sellers, brand owners, vendors, importers or manufacturers of the food products.

All e-commerce FBOs are required to sign an agreement with the sellers, brand owners, manufacturers averring that the said ‘sellers brand owners or manufacturers are compliant with FSS Act and Rules and Regulations made thereunder. No FBO by himself, or by any person on his behalf can manufacture, sell or distribute any article of food which is unsafe; or misbranded or substandard or contains extraneous matter; or for which a license is required, except in accordance with the conditions of the license.

FOOD PRODUCT LISTING AND INFORMATION

E-commerce FBOs including sellers, brand owners, vendors, manufacturers, etc. who display or offer 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

  • Give a clear and legible picture of the principal display panel, excluding batch number/ lot number, best before, expiry date and MRP.
  • provide an indicative image of the fresh produce they are selling to the e-commerce FBOs for displaying on their platform
  • Display their FSSAI License/Registration
  • Make available mandatory food information before consumers make a purchase
  • Make available for sampling any food products offered for sale on e-commerce platform
  • comply with hygiene and sanitary practices mentioned in Schedule 4 of Food Safety and Standards (Licensing and Registration of Food Businesses], Regulations 2011 and is applicable to seller, vendors, brand owners, manufacturers, importers, restaurant owners
  • immediately delist any food products that are not in compliance with FSS Act or Rules and Regulations

The FSSAI has also given directions to e-commerce FBOs to address consumer complaints as per time line prescribed by the Ministry of Consumer Affairs.