With the emergence of online market place, the e-commerce has been growing rapidly. These online market place control many complex legal problems including accountability and liability for any misconduct done by the third-party sellers. This research paper is written to elaborate the legal framework and increasing jurisprudence concerning to the liability
The e-commerce is growing at rapid pace due to the emergence of online market places, which has controlled to complex legal problems with regards to platform accountability or liability for any delinquency by the third-party sellers. This research paper based on the systematic literature review aims to summarize the legal framework and evolving jurisprudence relating to e-commerce platforms' liability for data breaches and unfair trade practices initiating from third-party sellers while studying legal frameworks in key regions, such as the EU's Digital Services Act (DSA), India's Consumer Protection (E-commerce) Rules, and the US's INFORM Consumers Act, emphasising a trend towards greater platform accountability. The key findings of this research paper show a world-wide shift away from the “mere intermediary” Défense, with jurisdictions gradually impose liability based on the knowledge of misconduct, platform's level of active participation, and failure to exercise due diligence and concludes that e- commerce platforms can be held legally responsible for data breaches and unfair trade practices by third-party sellers so the platforms' legal and ethical obligations grow as they take on more active roles in transactions, consumer protection policies, openness and calling for strict adherence to regulations. Although the extent of this liability varies greatly by jurisdiction. The legal frameworks typically strike a balance between safeguarding platforms from third-party content through "safe harbor" provisions and defending consumer rights