Nepal’s new e-commerce law targets shady online sellers — but will it actually work?

Nepal’s e-commerce boom has come with a dark side: fake ads, wrong deliveries, payment fraud, and zero accountability. With social media turning into the country’s largest digital shopping mall, the government is finally stepping in.

On the surface, the new E-Commerce Act sounds promising. It demands all online businesses — whether on Facebook, TikTok, or their own websites — to officially register with the Department of Commerce by Shrawan 2. After that? Unregistered sellers could face fines ranging from Rs. 10,000 to Rs. 50,000, or even jail time if they’re caught deceiving customers.

The law is designed to do one thing: bring structure to Nepal’s chaotic online marketplaces. From requiring businesses to list real product details, to forcing refunds and returns if buyers don’t get what they paid for — the rules are now in place. And they’re strict.

Businesses that continue to operate without registering, or don’t clearly disclose product/service info, could be slapped with penalties. In serious fraud cases, sellers, delivery agents, or marketplaces can face up to 3 years in prison or a Rs. 5 lakh fine.

So what’s changing?

• All online sellers must list their business on a government e-commerce portal.
• They must provide clear product details, pricing, and contact info.
• If a buyer is misled or scammed, they can now file a complaint — and the business can be identified and punished.
• Registered platforms will be easier to track, regulate, and hold accountable.

The Department of Commerce says over 200 online sellers have already begun registering, and expects 400–500 by the deadline. They’re planning a larger portal to handle the volume in the next fiscal year.

But as with most things in Nepal, there’s skepticism.

The big question: will it actually be enforced?

Consumer rights experts aren’t convinced. Despite strong legal language, Nepal’s weak enforcement history remains a problem. They point out that unless the government aggressively monitors online platforms and acts fast on complaints, the law could just sit on paper — like many others before it.

There’s also concern that the law might not cover all the tricky layers of digital commerce — like affiliate marketers, dropshippers, or cross-border resellers operating through apps.

Still, it’s a start. The E-Commerce Act may not fix everything, but if implemented well, it could be a turning point for digital trust in Nepal’s fast-growing online economy.

For now, shoppers are watching — and hoping — that the next time they tap “Buy Now,” they’ll actually get what they paid for.