New E-commerce Rule and their Impact
India's new draught e-commerce guidelines, which were released last week, have caused a stir.
The Department of Consumer Affairs' planned modifications is broad in scope, affecting a variety of issues and sectors other than e-tailers like Flipkart and Amazon India and their flash deals. Take a look at some of the other initiatives that could have an influence on the developing retail corridor. Some of these concepts, as well as their consequences, are currently being contested.
The government's first proposal said that all-flash sales would be prohibited, but a later clarification stated that this would not apply to 'traditional' flash sales. These are usually pre-planned sales for new smartphones with limited stock at a discounted price. It's unclear what constitutes a traditional flash sale.
Sellers' display or promotion of advertisements
E-tailers should not allow ads that are possibly misleading in terms of pricing, quality, or guarantee. They should not promote sellers who provide discounts. This could have an influence on e-tailers' burgeoning online advertising business.
Regarding the country of origin
E-tailers must guarantee that product listing includes information about the country of origin (CoO), which is a difficult undertaking. Millions of people shop on Flipkart and Amazon.
Whenever a consumer looks at an imported commodity or service, promoting local alternatives could be extremely tough to implement. It would also be difficult to put in place a ranking system for local alternatives.
Both e-tailers and sellers are uninterested in keeping track of these facts.
Concerns about cancellation fees and customer permission
Consumers are usually informed that certain products are non-returnable during the pre-purchase stage, and e-tailers frequently offer free exchanges or refunds. Explicitly requesting consent from customers can only improve their online shopping experience.
Misselling of goods or services is prohibited by any e-commerce firm.
The marketplace is run by companies like Flipkart and Amazon India, and they are not actively involved in the sale of items. Platforms that provide services such as food delivery and travel also serve as marketplaces.
Misselling of goods or services is prohibited by any e-commerce firm.
The marketplace is run by companies like Flipkart and Amazon India, and they are not actively involved in the sale of items. Platforms that provide services such as food delivery and travel also serve as marketplaces.
Users should not be misled by e-tailers who manipulate search results.
The jury is still out on how these algorithms perform on Indian and international internet markets. Flipkart and Amazon India have been accused of pushing their brands and merchants by tinkering with search results in India.
If such tactics amount to unfair commercial practices and infringe on consumers' rights, etailers should not allow their names to be used for brands.
Private company Flipkart and Amazon’s brands that have the e-commerce prefix connected to them will be scrutinized if they are found to be anti-consumer and anti-competitive.
Sponsored listings of ‘distinctly identifiable' products and services
This will only increase transparency for online customers, allowing them to gain a better understanding of the purchase they are about to make.
No e-commerce business with a dominant position in a market is permitted to abuse its position.
CCI has taken simultaneous action in this sector, filing a petition in the Karnataka High Court to investigate e-tailers and their business operations in response to complaints from sellers.
On the necessity for data to be delivered to agencies within 72 hours
More compliance for e-tailers and sellers could come from providing information to agencies within a particular time frame, provided there is an appropriate explanation.
A market e-commerce entity's logistics service provider is not allowed to treat merchants in the same category differently.
Typically, e-tailers want more merchants to ship their goods through the marketplace's in-house logistics arm so that they may be delivered faster.
Concerns about related parties failing to engage in the associated marketplace
If connected parties are not allowed to sell on the marketplace, this could have a significant impact on the operations of e-tailers like Amazon India. Amazon owns minority stakes in Cloudtail and Appario, both of which are popular vendors on Amazon's India marketplace. Legal experts are still divided on the issue.
When it comes to ‘fall back liability,' e-tailers and platforms have maintained that the responsibility should rest with the sellers of products or services, as long as they have their own internal inspections.
