NEW DELHI: Electronic marketplaces like Amazon and Flipkart might need to tweak a few of their policies following the Centre on Monday suggested tighter criteria geared toward providing increased transparency, such as checking sale by firms at which e-commerce players possess a bet and curbs on sharing of information.
From suggesting to prohibit”flash earnings” that advantage only chosen vendors into holding online marketplaces accountable for the activities of a vendor enrolled on the stage, the ton of planned measures by the user affairs ministry come from the background of local dealer bodies demanding activity against alleged malpractices from e-commerce giants.
The revised Consumer Security (E-Commerce Rules), 2020, additionally suggest that all e-commerce firms working in India will have to get registered with the authorities.
E-tailers might need to enroll with govt, suppress sales by associated partiesThe proposition is really a bid to rein in overseas e-commerce companies like Chinese gamers Club Factory and Alibaba which have been found selling products directly to Indian customers by devoting taxes and obligations.
They might need to create a chief compliance officer and also a nodal contact man for 24×7 communicating with law enforcement bureaus.
They’ll also have to get a resident grievance officer to deal with consumer complaints.
“By demanding e-commerce entities to register with the DPIIT and appoint a chief compliance officer, both nodal officer and grievance officer that are taxpayers of (and resident at ) India, the proposed rules attempt to carry e-commerce entities that operate in India responsible,” said Archana Tewary, spouse, J Sagar Associates.
“The rules seek to regulate the way approval will be obtained from customers to get the sharing of the information with different individuals.” The revised proposals attempt to declare the sharing of data from e-commerce entities with political authorities over 72 hours also need e-commerce marketplaces to make certain that not one of its affiliated parties and related businesses are appreciated as sellers available to customers directly.
“The definition of related enterprises also looks broad.
These modifications are extensive and will have major consequences,” explained Tewary.
Published for stakeholder consultations, the draft telling comes 11 months following principles for e-commerce were notified.
This time, additionally, it attracts under purview in-house logistics firms run by e-commerce players.
The draft rules stated no in-house logistics supplier provides differentiated treatment to vendors of the identical category.
The ministry stated these suggested changes in the principles have become essential as a result of unfair trade practices by affiliate platforms.
These comprised participating in search results to market certain vendors, preferential treatment to a and operating the sellers in their stage.
It stated all these impinge on the free choice of customers and businesses utilizing the platform promote products which are near expiry.
Senior executives in big e-commerce firms termed the draft principles as primitive steps which fall under”license raj”.
Ban mis-selling among tighter Standards mooted for e-commerce
