Description
Date - 22nd Jun 2021
India has planned to tighten rules for e-commerce marketplaces like Amazon and Flipkart and has proposed several amendments to the 2020 Consumer Protection (E-Commerce) Rule.
This decision was made after complaints from small businesses. They accused the e-commerce market of abusing market dominance and substantial discounts from online retailers. The amendments were proposed at a time when major e-commerce marketplaces such as Flipkart and Amazon India are being investigated by the Competition Commission of India (CCI) for alleged abuse of market dominance. CCI's research also focuses on deep discounting techniques commonly used in e-commerce marketplaces.
Proposed rules
- The revised rules propose to restrict "instant sales" of goods and services by e-commerce companies.
- However, this does not prohibit conventional flash e-commerce sales. Certain special flash sales or side-by-side sales that limit customer choices, increase prices, and prevent a level playing field will be prohibited.
- E-commerce firms will need to establish adequate redress mechanisms and appoint a Chief Compliance Officer.
- Companies must also designate a local Complaints Officer who must be a company employee and an Indian citizen. He will serve as the focal point of contact for law enforcement.
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