economy

CAIT tells Goyal not to succumb to hidden pressure and dilute e-commerce rules

CAIT tells Goyal not to succumb to hidden pressure and dilute e-commerce rules

Traders body Confederation of All India Traders (CAIT) on Sunday said it has sent a letter to union commerce minister Piyush Goyal, demanding no relaxation in e-commerce rules. If there is any relaxation in the rules, then it will be considered that the government is under full pressure from foreign companies, whose message will not go well in the business class, CAIT said in its letter. The association for traders in India further added that any dilution of proposed e-commerce rules will offer the e-commerce landscape to global e-tailers to twist the e-commerce trade to their advantage even at the cost of flouting the laws. There were reports that indicated government is planning to drop clauses on deep discounts and flash sales. The draft e-commerce rules proposed amendments to address complaints against “unfair trade practices followed by e-tailers. The government is aiming for a tighter regulatory framework, arguing that the amendments are largely meant to protect consumer interest, adding another layer of compliance for e-commerce firms. However, several large companies expressed concern and confusion over the e-commerce rules. CAIT said arguments like any strong policy action will affect the prospects of entry of foreign investment in India are absurd and baseless having no stands to leg. It has been duly established that several foreign companies are indulging into predatory pricing, deep discounting, loss funding, exclusivity, owing inventory and preferential seller system in their business practices, it added CAIT said provisions prohibiting deep discounts and flash sales, making e-commerce marketplaces responsible for the quality of goods sold on their platforms setting up robust grievance redressal mechanisms by the e-commerce companies should be integral and non compromising. The strongly worded letter by CAIT noted that if the even level playing field is not granted, the traders of the country will be compelled to wind up their businesses in phase wise manner Download.

economy 2022-01-03 Livemint