Govt tightens rules for E-Commerce firms |
Govt. tightens rules for e-commerce companies After the complaints from Indian retailers and traders against these platforms. In a move that will end the e-commerce monopoly and steep discount offers by marketplaces like Flipkart and Amazon, the Centre has tightened rules for online retailers asking them to stop any pact with firms for the exclusive sale of their products. The new rules will come into force from February 1. Revisiting the policy for e-commerce firms, the Ministry of Commerce and Industry has cautioned that the cashback provided by e-commerce entities to buyers shall be fair and non-discriminatory. The purpose of these marketplaces is to create a platform that can connect demand to the supply in the country and provide MSMEs, the ability to reach consumers nationwide, which obviously was getting hampered because certain related party sellers were crowding out the small seller. The notification also barred them from selling products of companies in which they have a stake. In addition, an e-commerce entity will not be permitted more than 25% of the sales through its marketplace from one vendor or their group companies.
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