Image credit : The Indian Express
The government of India is formulating to set forth stricter norms for the e-commerce platforms like Flipkart, Amazon. In the coming days, the government might prohibit e-commerce sites to organize flash sales of goods and services.
As per reports, the Department of Consumer Affairs has attempted to put forward the proposed amendments to Consumer Protection by July 6. The Walmart-owned Flipkart, Amazon organizes several sales throughout the year which appear to hinder the small scale businesses. As per the new law, that is yet to come in force such sales would not be allowed.
The government informed through its release that it has come across several complaints from the consumers, traders and associations against these widespread cheating along with unfair trade that is being conducted in the e-commerce ecosystem. On regard to this, the Ministry of Consumer affairs in its proposal stated that no e-commerce platform should be enabled to organize flash sales in India.
Though the sales given by Flipkart and Amazon during the festive season and Republic day in India stands to be highly beneficial for the e-commerce firms and its customers, the government might prohibit these sales too.
The Ministry in a statement asserted, “Certain e-commerce entities are engaging in limiting consumer choices by including ‘back-to-back’ or ‘flash’ sales wherein one seller selling in a platform does not carry any inventory or order fulfilment capability but merely places a ‘flash or back to back’ order with another seller controlled in the platform.” It further stated that this prevents a level playing field and thereby limits the customers choices and increases the prices.
Furthermore, the Ministry claimed that the e-commerce platforms control search results to promote particular sellers and provide preferential treatment to some sellers. It clarified that the government is not giants in the conventional lash sales offered by the third party seller on the e-commerce platforms. The major objective of the government is to maintain a transparency in the e-commerce platforms to curtail what they call “unfair practices.”
As far as the reports are concerned, the government might propose the e-commerce firms to appoint a chief compliance officer along with a nodal officer and a resident grievance officers in India which is quite similar to the order to Facebook, WhatsApp and Twitter.
The Ministry informed that to make sure compliance of the Consumer Protection Act 2019 and Rules, it had proposed the appointment of chief commission officer, a nodal contact person for 24*7 coordination with the law enforcement agencies, officers to guarantee compliance to their orders and Resident grievance officers for looking into the grievances of the consumers of the e-commerce platforms. In addition, it explained that this phenomenon would ensure effective compliance with the provision of acts and rules and also build up the grievances redressal mechanism on the e-commerce entities.
According to reports, Under the new law, the Ministry will also restrict the e-commerce platforms from listing associated parties as sellers for selling to the customers directly. It also added that the e-commerce platforms which also need to notify the best before or use before date to allow the consumers to make an informed decision. As yet, Flipkart and Amazon have not voiced any statement regarding the issue.