Indian Govt Looking to Ban Flash Sales; Enforce Stricter E-commerce Rules

Republic of india is planning to establish stricter rules for due east-commerce platforms to prevent the likes of Amazon and Flipkart from hampering the sales of pocket-size businesses. The Ministry of Consumer Affairs of India has proposed new amendments that prohibit east-commerce platforms to hold "specific types of flash sales" of goods. Moreover, the companies might need to utilise a Main Compliance Officer and a 24×7 Grievance Officer who should be an Indian resident.

The move, every bit per the Indian government, comes after it received numerous complaints from traders, consumers, and associations against unfair merchandise practices and cheating in the due east-commerce ecosystem in India. Platforms such every bit Amazon and Flipkart hold a myriad of flash sales during festivals like Diwali and occasions like Independence Day. So, under the new law, these platforms will be prohibited by law to concur such flash sales in the country.

"Certain e-commerce entities are engaging in limiting consumer pick by indulging in 'dorsum to dorsum' or 'flash' sales wherein one seller selling on [the] platform does non behave whatever inventory or society fulfilment capability but merely places a 'flash or back to back' order with another seller controlled by the platform. This prevents a level playing field and ultimately limits client choice and increases prices," said the Ministry of Consumer Diplomacy in an official statement.

Furthermore, the Ministry proposes to force e-commerce platforms to appoint a Main Compliance Officer as well as a Resident Grievance Officer. They will be responsible to ensure compliance with the Consumer Protection Human activity, 2019 and Rules. It is like to the new IT Rules 2021 clause that forced social media giants such equally Twitter, WhatsApp, and Facebook to appoint an India-based Chief Compliance Officer (CCO) in the country.

The government recently proposed the new amendments to the Consumer Protection Act in India and seek comments or suggestions past July 6. And so, if the proposed amendments are applied to the Consumer Protection rules, and so e-commerce giants similar Amazon, Flipkart, and other players will be prohibited to hold flash sales.

So, what practice you retrieve virtually the new proposed rules for the due east-commerce ecosystem in India? Do you lot call back it will limit unfair merchandise practices and help small businesses? Let u.s. know in the comments.