Parliament Clears Path for Social Media Advertising Oversight

Lawmakers have paved the way for the government to regulate transactions and advertisements conducted through social media platforms such as Facebook and Instagram. This has been made possible after a parliamentary committee added a key provision to the Electronic Transaction Bill, 2080, enabling oversight of social media-based marketplaces where users buy and sell goods.

The Industry, Commerce, Labour, and Consumer Welfare Committee of parliament recently passed the bill unanimously, addressing the growing use of Facebook and Instagram’s marketplace features for advertising and trading goods and services. This marks the first step toward formal oversight of such digital commerce activities.

The earlier version of the bill did not include provisions for regulating advertisements or transactions on social media platforms. However, strong recommendations from the Auditor General’s annual report and various government studies highlighted the need for oversight. In response to committee members’ persistent calls for regulation, the Ministry of Industry, Commerce, and Supplies introduced a provision to govern social media marketplaces.

“This is not about regulating all social media,” clarified Ram Kumar Paudel, secretary of the Industry Committee. “The ministry will draft specific directives to oversee the marketplace features within social media platforms.” These directives will outline who is permitted to advertise and conduct transactions, as well as the nature of the regulation.

Industry, Commerce, and Supplies Minister Damodar Bhandari praised the bill, calling it an important milestone in modernising e-commerce laws. “The passage of this bill is a collaborative achievement of the committee and the government,” he stated during the committee meeting on Sunday.

The bill, previously passed by the National Assembly, is now on its way to the House of Representatives for further discussion. If approved, it will require presidential authentication to become law. Once enacted, it will lay the foundation for more structured and regulated digital commerce in Nepal, ensuring transparency and consumer protection in online marketplaces.