Indian Government to ban flash sales and other proposals

Indian Government to ban flash sales

The Indian government on Monday proposed several changes to the country’s e-commerce rules to curb fraud and unfair business practices that are widespread in the ecosystem. The proposed changes include a ban on certain types of flash sales and penalties on the platform if the seller fails to do so. “Delivery,” the Ministry of Food and Consumers said in a statement on Monday.

The statement stated that the proposed rule changes are aimed at ensuring transparency, strengthening the regulatory system, protecting consumer interests and promoting free and fair competition. The government has asked for comments and suggestions on these changes to the 2020 Consumer Protection Regulations (e-commerce) within 15 days (until July 6, 2021). “Certain e-commerce companies are involved in restricting consumer choice.”

The State Council proposed to ban certain types of flash memory. “This avoids a level playing field, which ultimately limits customer choices and increases the price of e-commerce platforms. Changes.” It is the appointment of the Chief Compliance Officer, which is the hub for 24/7 coordination with law enforcement agencies to ensure Comply with the Consumer Protection Law of 2019, which will strengthen the complaint handling mechanism.

In addition, a structure for registering each e-commerce unit is also proposed. It states that the assigned registration number and the invoice for each order are clearly visible on the website. Goods or services caused by negligence have provided alternative liability clauses for every e-commerce company in the market. The notice of the regulations came into effect on July 23 last year and aims to prevent unfair business practices in e-commerce the statement said.

However, after receiving the notice, the Indian government received several complaints from affected consumers, retailers and associations who complained about unfair business practices and widespread fraud in the e-commerce ecosystem. “It has had a negative impact on consumer satisfaction and business sentiment in the market, and has caused great pain and suffering to many people,” he said.

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