Flash sales on e-commerce sites to be a thing of past? Govt proposes sweeping changes in rules
New Delhi | Jagran Business Desk: The government of India has proposed sweeping changes to the Consumer Protection (E-commerce) Rules, 2020, which includes a ban on “specific” flash sales. The proposed changes also mandate sharing of information with government agencies related to the registration requirement of online retailers.
The Consumer Affairs Ministry clarified in a statement that conventional e-commerce flash sales are not banned. “Only specific flash sales or back-to-back sales which limit customer choice, increase prices and prevents a level playing field are not allowed,” it added.
The trader associations have called the proposed rules an “important step to purify” the e-commerce business in India. “The new draft is a guiding stone to purify the e-commerce landscape of the country, which has been greatly vitiated by various e-commerce global companies,” The Confederation of All India Traders, a body representing local traders and sellers from all over the country, said in a statement.
Proposed changes similar to IT (intermediary) Rules:
Similar to the changes proposed in Information Technology (intermediary) Rules, 2021, the e-commerce companies will now require to appoint a grievance officer, a chief compliance officer and a nodal contact person for 24/7 coordination with the law enforcement agencies.
The ministry is also reportedly looking for ways to ensure that all e-commerce platforms are barred from collecting data to exhibit an “unfair advantage” for selling other goods and services on their platforms. The Consumer Affairs’ Ministry has sought the views of stakeholders from the trade and e-commerce industry on the proposed changes in the e-commerce rules by July 6.
For what all the e-commerce rules will be applicable?
The rules, if get the cabinet nod, will be held applicable for all the goods and service bought or sold over digital networks, including digital products. The rules will be valid for all e-commerce marketplaces, including multi-channel single-brand retailers and single brand retailers.
Posted By: Talibuddin Khan