No meaningful action has been taken for a long time by the government to stop malpractices of e-commerce companies that had proved to be a great nightmare for the traders of the country was said by the Traders’ body Confederation of All India Traders (CAIT).
By the e-commerce companies, the traders’ body has also been writing to various ministries and PM Narendra Modi to implement e-commerce rules as immediately possible to curb alleged business malpractices.
Traders’ body Confederation of All India Traders (CAIT) said that no meaningful action had been taken so far by the government to finish malpractices of e-commerce companies that have proved to become a great nightmare for the traders of the country.
The CAIT has been alleging unethical business practices such as deep discounting, preferential treatment to some sellers, predatory pricing, circumvention of FDI laws, and more by Amazon and Flipkart over the past couple of years.
The traders’ body has also been writing to PM Narendra Modi and various ministries to implement e-commerce rules as immediately possible to curb alleged business malpractices by the e-commerce companies.
First floated in June, it’s not clear how the opposition from the finance ministry a dozen in total will, in the end, be reflected in the proposed rule changes.
But watchers of the influential government arm says its objections won’t fall on deaf ears in the upper grade of PM Narendra Modi’s administration.
The consumer affairs minister has said the new rules were aimed to become further strengthen the regulatory framework and were issued after complaints of widespread cheating and unjust trade practices were observed in the e-commerce ecosystem.
But the Finance Ministry, the ministry of corporate affairs, and the federal think-tank NITI Aayog an active player in policy-making have all raised opposition in memos reviewed by Reuters and said the proposals go far beyond their stated focus of protecting consumers and also lack regulatory clarity.
In August, the parent company of its seller firm Cloudtail and Amazon had announced that the two will exit the joint venture after May 2022.
Narayana Murthy’s Catamaran Ventures, which owned the joint venture in 2014 is formed with Cloudtail and Amazon.
The Supreme Court had asked Amazon and Flipkart to volunteer for the CCI probe because the announcement was made an hour.