01
Consumer Protection Act, 2008
Relevant to consumer transactions, delivery, inspection, returns, refunds, defective goods, service quality, cancellation, intermediaries, and fair supplier conduct.
- Goods should generally be safe, good quality, durable, and fit for purpose.
- Consumers should have a reasonable opportunity to inspect delivered goods.
- Services should be performed on time and with reasonable quality.
- Escrow rules should not remove statutory consumer rights.
02
Electronic Communications and Transactions Act, 2002
Relevant because escrow deals are created online through electronic records, disclosures, acceptance, notices, and platform communications.
- Display clear supplier/platform information.
- Keep transaction records, notices, and acceptance events traceable.
- Use clear online terms before a user deposits funds.
03
National Payment System Act, 1998
Relevant if the platform receives, holds, routes, instructs, clears, or releases payments. Payment services may require regulated bank or payment-provider arrangements.
- Do not treat payment handling as only a software feature.
- Use regulated banking/payment partners for customer-money flows.
- Keep customer funds separate from operating money.
04
Financial Intelligence Centre Act, 2001
Relevant to anti-money laundering, counter-terrorist-financing, customer due diligence, recordkeeping, transaction monitoring, and suspicious-transaction reporting.
- Build KYC/KYB checks into onboarding and higher-risk deals.
- Monitor unusual transaction behaviour.
- Keep records needed for audits and reports.
05
FAIS Act, 2002
Relevant if the platform starts giving financial advice or intermediary services involving defined financial products such as deposits, investments, insurance, or guarantees.
- Avoid presenting escrow balances as investment or deposit products.
- Avoid financial advice unless properly licensed.
- Review licensing before offering guarantees, insurance, or yield.
06
Trust Property Control Act, 1988
Relevant if escrow funds are held through a trust structure. Trust money must be identifiable, segregated, and administered according to trust obligations.
- Use clearly identified trust/client-money accounts where applicable.
- Maintain accurate books for customer funds.
- Disclose trustee capacity to accountable institutions where required.
07
Protection of Personal Information Act, 2013
Relevant because the platform processes identity documents, contact details, bank details, transaction records, evidence files, and dispute materials.
- Collect only necessary personal information.
- Secure identity, payment, and dispute records.
- Define retention and deletion rules.
08
Common law of contract
Relevant to the escrow agreement between buyer, seller, and platform. Clear contract terms determine duties, release events, breach, remedies, and evidence standards.
- Define buyer, seller, platform, amount, goods/services, milestones, delivery, inspection, release, cancellation, and disputes.
- Record acceptance of every material term.
- Do not rely on vague “satisfaction” language.