The commerce ministry has written to Evaly, asking it to comply with the Consumers' Right Protection Act and the National Digital Commerce Policy.
The company has also been asked to follow the cash-on-delivery system.
The letter, signed by the ministry's Assistant Director-1 SM Nazia Sultana on 4 March, was sent to Evaly Chief Executive Officer Mohammad Rassel. The recipient was asked to inform the ministry after implementing the directives.
"Evaly has been directed, according to the national digital commerce policy 2018, to follow the cash-on-delivery system in the interest of e-commerce facilitation and to redress the grievances of both consumers and sellers," Md Hafizur Rahman, director general of the World Trade Organisation cell under the ministry and head of the central digital commerce cell, said.
The letter was sent in the wake of a police investigation report on allegations of violations of various sections of the Consumers' Right Protection Act 2009 and Penal Code 1860 against the e-commerce company. Violation of these sections may lead to imprisonment for up to three years.
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Evaly is accused of not delivering products on time after receiving advance payments. This is a violation of Sections 45 and 53 of the Consumers' Right Protection Act, said the police report.
In the letter, the commerce ministry also instructed Evaly to coordinate with the e-Commerce Association of Bangladesh, if necessary, to conduct business in compliance with the Consumers' Right Protection Act and the National Digital Commerce Policy.
Hafizur said e-commerce had huge potential in Bangladesh and companies had to earn the trust of buyers in order to take advantage of this potential.
He said the timely delivery of the right products had to be ensured to gain the trust of buyers.
"That is why we are preparing the digital commerce management guide 2021. It will be issued by next month after the 21 March consultation meeting is held," said the commerce ministry official.
He said all e-commerce companies, including Evaly, must run their business in line with the guide.
The draft guide says products bought with advance payments must be delivered within a maximum of five days if the destination is in the same city, and 10 days if in a different city or village.
In case of cash-on-delivery and partial cash-on-delivery, goods have to be delivered within a maximum of seven days if the destination is in the same city, and 15 days if in a different city or village.
If products are not delivered within this period, buyers can sue the company under the Consumers' Right Protection Act. In that case, the company will have to pay double the product price as a penalty.