India proposes stricter ecommerce rules

Tuesday 22 June 2021 13:27 CET | News

India’s Ministry of Consumer Affairs  has issues a proposal to ban flash sales on ecommerce platforms and prevent their affiliate entities from being listed as sellers.

The proposal comes with the justification that the South Asian market looks to further tighten rules that could hurt the future prospects of Amazon and Walmart’s Flipkart in the world’s second-largest market, TechCrunch explains.

India is also proposing that ecommerce platforms appoint a chief compliance officer, a nodal contact person for 24×7 coordination with law enforcement agencies, and officers to ensure compliance to their orders as well as a resident grievance officer for redressing of the grievances of the consumers on the ecommerce platform.

The new proposal may also prohibit Amazon, Flipkart and other ecommerce players from running their in-house/private labels. It asks ecommerce companies to ensure that none of their related and associated parties are listed on their platforms as sellers for selling to customers directly. The ministry said it is making the proposal, for which it plans to seek industry feedback over the next 15 days, after receiving several complaints against widespread cheating and unfair trade practices being observed in e-commerce ecosystem.

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Keywords: regulation, ecommerce, Amazon, online shopping
Categories: Payments & Commerce | Ecommerce
Countries: India
This article is part of category

Payments & Commerce