Traders welcome govt move to tighten norms for e-commerce companies
Traders' body CAIT on Wednesday welcomed the government's move to tighten norms for sale of products by e-commerce firms but demanded the introduction of an e-commerce policy and regulator to monitor the sector.
New Delhi: Traders' body CAIT on Wednesday welcomed the government's move to tighten norms for sale of products by e-commerce firms but demanded the introduction of an e-commerce policy and regulator to monitor the sector.
"It is a big achievement after a long struggle. If it is implemented in proper spirit, mal-practices and predatory pricing policy and deep discounting of e-commerce players will be a matter of past," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.
The government on Wednesday took a host of steps and barred e-commerce firms from selling products of the companies in which they have equity stakes or management control.
The commerce and industry ministry also prohibited e-commerce companies from entering into an agreement for the exclusive sale of products.
Khandelwal said measures announced by the government should be implemented with retrospective effect from 1 April, 2018.
"An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity," the ministry said.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
The foreign direct investment (FDI) norms related to e-commerce companies should be implemented on domestic online players also to restrict them from adopting any unethical business practices, traders' body CAIT said on Monday.
Traders' body CAIT has written to the government opposing any move to extend the 1 February, deadline for online marketplaces to comply with FDI rules, as such an action will compel small businesses to launch a national campaign which may have "political repercussions"
Traders' body CAIT on Monday expressed apprehension over the commerce ministry not taking any action on the e-commerce issues and its detrimental impact on the country's retail trade