CAIT tells Goyal not to give in to hidden pressures and dilute e-commerce rules


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The Confederation of Traders of India (CAIT) said on Sunday it had sent a letter to Minister of Commerce Piyush Goyal demanding no relaxation of e-commerce rules.

“If there is any relaxation of the rules, then it will be considered that the government is under full pressure from foreign companies, whose message will not pass well in the business class,” CAIT said in its letter.

The Merchants Association in India further added that any dilution of the proposed e-commerce rules would open up the e-commerce landscape for global e-merchants to divert e-commerce commerce to their advantage, even at the cost of disregarding the public. laws.

Reports have indicated that the government plans to remove the clauses on large discounts and flash sales.

The draft e-commerce rules proposed changes to deal with complaints about “unfair trade” practices followed by online retailers. The government is aiming for a stricter regulatory framework, arguing that the changes are largely aimed at protecting the interests of consumers, adding another layer of compliance for e-commerce businesses.

However, several large companies have expressed concern and confusion over e-commerce rules.

The CAIT said arguments such as any strong political action will affect the prospects for foreign investment in India are absurd and baseless, without resistance.

“It has been duly established that several foreign companies engage in predatory pricing, large discounts, loss financing, exclusivity, inventory due and preferential seller system in their business practices.” , he added.

CAIT said the provisions prohibiting large discounts and flash sales, making e-commerce marketplaces accountable for the quality of products sold on their platforms, the establishment of robust grievance mechanisms by e-commerce companies should be integral and not compromising.

CAIT’s strongly worded letter noted that if a level playing field is not struck, traders across the country will be forced to wind up their businesses in phases.

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