FBCCI and e-CAB against new act for digital commerce
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) and e-Commerce Association of Bangladesh (e-CAB) demanded the enforcement of existing laws instead of formulating a new ones.
Both organisations have strongly denounced the proposal of a new law to govern the industry as it will hinder the growth of digital trade and also does not align with the government's vision of "Smart Bangladesh".
They also expressed their concern that if the proposed digital commerce law is passed, it would stifle the country's budding digital commerce, instead of facilitating the expansion of the potential industry.
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The new act would also discourage foreign direct investment (FDI) in the country while impeding the growth of small-and-medium-sized digital commerce entrepreneurs, they said while speaking at a discussion programme on the draft Digital Commerce Act 2023 organised by the country's apex trade body in collaboration with e-CAB at FBCCI hall in the capital Sunday.
Mohammad Sahab Uddin, vice president of e-CAB, and Syeda Ambareen Reza, co-founder and managing director of foodpanda Bangladesh and director of e-CAB, presented the keynote.
According to the keynote, only 2% of the total retail transaction is happening digitally compared to 7% in India and 27.8% in China. At the event, it was brought to light that the new act appears to be focused more on punishing entrepreneurs rather than effectively managing the burgeoning industry.
The proposed Digital Commerce Act 2023 will increase duplication of functions among government agencies, said Ambareen Reza, during the keynote presentation.
"The proposed act imposing additional punishment for the same activities is contrary to our constitution. It is like two different punishments for the same offence but higher punishment if it is done by e-commerce or digital commerce," Ambareen added.
The new act proposes three years in jail and a Tk5 lakh fine for an offence, while the Directorate of National Consumers Right Protection currently awards one year in jail or a Tk2 lakh fine for the same crime, she further added.
"Bangladesh has a multitude of laws in place which can safeguard the rights of online customers. A similar number of government bodies are granted the authority to penalise any transgressors of their provisions," said Barrister Tanjib-ul Alam, advocate, Supreme Court of Bangladesh.
Despite the presence of numerous laws and regulatory bodies, fraudulent activities by some players were still not prevented due to the failure of authorities to enforce the regulations, he said adding the formulation of a new guideline will not encourage the industry to grow further.
It is evident that the draft has been compiled without consulting with the entrepreneurs, said Jashim Uddin, president of FBCCI, adding that since the industry does not feel the need for a separate act, the government should not go for it as it will hinder the growth and expansion.
"We don't want a new act, rather we want enforcement of existing rules and regulation," Shomi Kaiser, president of e-CAB, said, adding, "It will stifle the growth of the e-commerce industry and small and medium-sized entrepreneurs will not survive if the new act gets approved.
Amin Helaly, vice president of FBCCI, and Muhammad Abdul Wahed Tomal, general secretary of e-CAB, were present at the programme.
