The Indian government on Monday proposed several changes to the country’s e-commerce rules to curb unfair trade practices. One of the notable changes puts a ban on certain kinds of flash sales where sellers don’t keep inventory or order fulfillment capability but hold a flash sale.
Ministry of Consumer Affairs has put the proposed changes on the website and is calling for public comments till July 6. The Ministry confirms that the ‘conventional’ flash sale has not been banned.
“Certain e-commerce entities are engaging in limiting consumer choice…wherein one seller selling on the platform does not carry any inventory or order fulfillment capability but merely places a ‘flash or back-to-back’ order with another seller controlled by platform,” the Ministry said, proposing a ban on certain kinds of flash sales.
Another notable recommended change is the appointment of Chief Compliance Officers. This office will be a contact person who will have to coordinate with law enforcement agencies to ensure compliance with the Consumer Protection Act, 2019.
E-commerce companies will have to provide any information sought by the Government agency within 72 hours of the receipt of an order.
The new provisions also mandate e-commerce companies to register with the Department of Promotion for Industry and Internal Trade (DPIIT). They will also have to share information with the “Government agency for the purposes of verification of identity and to prevent frauds and cybercrime incidents.
Government also wants e-commerce firms to mention the name and details of any importer from whom it has purchased such goods or services. E-commerce firms will have to provide alternative suggestions to customers to ensure fair opportunity for domestic goods.
The Confederation of All India Traders, a body that represents local traders and sellers, is happy with the proposed changes. “The new draft is a guiding stone to purify the e-commerce landscape of the country, which has been greatly vitiated by various e-commerce global companies,” said CAIT in a statement.
