Bureau of Indian Standards to regulate ‘live commerce’ platforms in marketplaces

*The Bureau of Indian Standards commences the assessment of the need for specific guidelines for ‘live commerce’, a comparatively new mode of online commerce in the country

Gbenga Kayode | ConsumerConnect

The Bureau of Indian Standards (BIS) is set to regulate ‘live commerce’, in which influencers partner with brands to showcase their products.

ConsumerConnect gathered the regulatory agency, under the Indian Ministry of Consumer Affairs, may soon have its own set of rules governing the relatively new sub-sector of the economy in the country.

What is live commerce?

The e-commerce mode has been described as a form of online selling in which influencers partner with brands to showcase their products to consumers in the marketplaces.

The Bureau has begun to assess the need for specific guidelines for this relatively new mode of online commerce, which first found success in China, ETtech report said.

Subsequently, BIS is seeking views of its members of its retail, e-commerce and e-payment services sectional committee on rules for live commerce platforms in the economy, an e-mail review showed.

The Indian Government has initiated talks with stakeholders on a regulatory framework for live commerce in the country.

Currently, there are no specific guidelines for live commerce in India, only broader rules for e-commerce marketplaces.

Guiding rules for live commerce

This BIS move follows moves by the International Organisation for Standardisation (ISO) to issue international standards for live commerce, report stated.

Platforms gaining traction with online firms

The government’s decision to assess and regulate the mode of e-commerce comes at a time when live commerce is seeing increased participation from top e-tailers like Flipkart, Amazon India and Myntra, according to report.

Besides, live commerce is fairly big in China and relies on influencer shopping experts who hold live sessions on e-commerce platforms, report said.

How China’s live commerce booms

The bet on live commerce and its long-term potential in India is reportedly based on how it has already worked in China.

In 2021, for instance, McKinsey & Co said the value of China’s live-commerce market grew at a compounded annual growth rate (CAGR) of more than 280 percent between 2017 and 2020 to reach an estimated $171 billion in 2020.