After Customer Protection, Centre Focuses On E-Commerce Laws
- ByStartupStory | July 3, 2021
The Centre focuses on e-commerce laws and clarifies the existing foreign direct investment regulations for the sector after the consumer protection rules for online retailing are finalized, trade minister Piyush Goyal said on Friday. Last month, the consumer affairs ministry, which also comes under Goyal, released the draft consumer protection rules for public consultation. The proposed regulations seek to bring changes to how e-commerce, which includes Amazon and Flipkart, operates since small businesses complained that e-commerce giants misuse market dominance and deep-discounting to gain an unfair advantage. The rules propose to limit so-called ‘flash sales’ of goods and services by e-commerce companies by proposing to ban back-to-back sales that limit consumer choice, increase prices and prevent a level playing field.
Goyal expressed hope that all stakeholders will come with their suggestions on the draft rules by July 6. “We wanted to come out with the consumer protection rules of e-commerce first because we believe our most important stakeholder is the consumer. This has also sent a strong message to the world. Sometimes, there used to be criticism that our e-commerce policy is skewed against foreign investors. By announcing the e-commerce policy for consumer protection, we have demonstrated that our first and foremost concern is the consumer,” Goyal said. In July last year, the Centre notified new rules for e-commerce firms, forcing e-tailers to display details on return, refund, exchange, warranty and guarantee, modes of payment, and grievance redressal mechanism, as well as the country of origin. Goyal said that once the draft rules are finalized, the government will issue any clarification necessary in its existing FDI policy for e-commerce.
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