The government of India on Monday proposed several tweaks to the country’s e-commerce rules to curb widespread cheating and unfair trade practices in the ecosystem.
Among the changes proposed are a ban on certain kinds of flash sales and punitive action against the platform if sellers don’t deliver, according to a statement issued by the Food and Consumer Affairs Ministry on Monday.
The Department of Consumer Affairs has sought comments/suggestions on the proposed amendments to Consumer Protection by July 6. Walmart-owned Flipkart, Amazon hold countless sales thorough out the year which seems to be hampering the small businesses, under the new law such sales would be prohibited.
No more Flash Sales?
Amazon, Flipkart hold flash sales especially around festivals like Diwali, Republic Day in India. While these sales must be highly beneficial for the e-commerce firms and the customers, the government may not let the sales anymore.
The government has said in its release that it has received countless complaints from consumers, traders and associations against widespread cheating and unfair trade practices being observed in the e-commerce ecosystem.
GoI has sought views and suggestions on these amendments to the Consumer Protection (E-commerce) Rules, 2020, within 15 days (by July 6, 2021). The statement clarified that conventional flash sales by third party sellers are not banned on e-commerce platform.
Further changes:
Another change recommended is the appointment of Chief Compliance Officers, nodal contact persons for 24×7 coordination with law enforcement agencies, to ensure compliance of the Consumer Protection Act, 2019.
This would, according to the statement, strengthen the grievance redressal mechanism.
Further, a framework for registration of every e-commerce entity has been proposed. The allotted registration number shall be displayed prominently on the website as well as the invoice of every order, it says.
Click on the link below to read the proposed changes.
