In a bid to curb cheating on e-commerce websites, the government on Monday proposed a ban on fraudulent flash sales on e-commerce platforms.
The government has proposed the ban through amendments to the Consumer Protection (E-Commerce) Rules 2020 and invited comments and suggestions from the people by July 6.
The Consumer Affairs Ministry said it had received several representations from aggrieved consumers, traders and associations complaining against widespread cheating and unfair trade practices in the e-commerce ecosystem.
“Conventional e-commerce flash sales are not banned. Only specific flash sales or back-to-back sales which limit customer choice, increase prices and prevents a level playing field are not allowed,” the Ministry said.
Read more: Government eases listing norms for companies having over Rs 1 lakh crore m-cap
Among other things, the amendments necessitate that companies offering imported goods identify their country of origin, hold companies liable for a seller failing to deliver goods or services, and prevent them from allowing any display or promotion of misleading advertisement on its platform.
Additionally, no entities related to e-commerce firms will be allowed to sell on the marketplace directly.
The revised rules also seek for the e-commerce companies to register themselves with the Department for Promotion of Industry and Internal Trade and require them to appoint a Grievance Officer as well as a Chief Compliance Officer.
The Confederation of All India Traders (CAIT), which has long demanded stricter e-commerce norms to protect the interest of offline traders, welcomed the draft rules.
CAIT Secretary General Praveen Khandelwal termed the draft as a “guiding stone to purify e-commerce landscape of the country which has been greatly vitiated by various e-commerce global companies to the extent that not only the domestic trade has been damaged but even the consumers are also feeling the heat of their unethical business practices.”