India is planning to ascertain stricter guidelines for e-commerce platforms to forestall the likes of Amazon and Flipkart from hampering the gross sales of small companies. The Ministry of Shopper Affairs of India has proposed new amendments that prohibit e-commerce platforms to carry “particular forms of flash gross sales” of products. Furthermore, the businesses may must make use of a Chief Compliance Officer and a 24×7 Grievance Officer who must be an Indian resident.
The transfer, as per the Indian authorities, comes after it obtained quite a few complaints from merchants, customers, and associations towards unfair commerce practices and dishonest within the e-commerce ecosystem in India. Platforms akin to Amazon and Flipkart maintain a myriad of flash gross sales throughout festivals like Diwali and events like Independence Day. So, beneath the brand new regulation, these platforms will probably be prohibited by regulation to carry such flash gross sales within the nation.
“Sure e-commerce entities are partaking in limiting client alternative by indulging in ‘again to again’ or ‘flash’ gross sales whereby one vendor promoting on [the] platform doesn’t carry any stock or order fulfilment functionality however merely locations a ‘flash or again to again’ order with one other vendor managed by the platform. This prevents a degree taking part in discipline and in the end limits buyer alternative and will increase costs,” stated the Ministry of Shopper Affairs in an official assertion.
Moreover, the Ministry proposes to power e-commerce platforms to nominate a Chief Compliance Officer in addition to a Resident Grievance Officer. They are going to be accountable to make sure compliance with the Shopper Safety Act, 2019 and Guidelines. It’s just like the brand new IT Guidelines 2021 clause that compelled social media giants akin to Twitter, WhatsApp, and Fb to nominate an India-based Chief Compliance Officer (CCO) within the nation.
The authorities not too long ago proposed the brand new amendments to the Shopper Safety Act in India and search feedback or options by July 6. So, if the proposed amendments are utilized to the Shopper Safety guidelines, then e-commerce giants like Amazon, Flipkart, and different gamers will probably be prohibited to carry flash gross sales.
So, what do you concentrate on the brand new proposed guidelines for the e-commerce ecosystem in India? Do you suppose it’s going to restrict unfair commerce practices and assist small companies? Tell us within the feedback.