More flash sales on phones, other goods and more
The Indian government plans to introduce stricter rules for e-commerce platforms such as Flipkart and Amazon, among others. The government has proposed some adjustments to the e-commerce rules. The idea with these proposed rules is to combat widespread cheating and unfair business practices in the e-commerce ecosystem. Also Read – Facebook Will Now Make Money Using WhatsApp In-App Purchases
The Department of Consumer Affairs has requested comments or suggestions on the proposed changes to consumer protection within 15 days, by July 6, 2021. Here are 10 takeaways from the proposed new e-commerce rules / policies. Looked. Also Read – Flipkart to Acquire 1,500 Crore Stake in Aditya Birla Group Fashion Retail
No more flash sales.
-One of the biggest changes proposed by the Indian government is to stop flash sales on e-commerce platforms. Big e-commerce giants such as Flipkart, Amazon among others are running countless flash sales on phones and other goods to attract consumers / buyers. The Indian government aims to end this and wants businesses and e-commerce platforms to list products with sufficient stock. Also Read – Flipkart Shares Insight On Customer Behavior After Coronavirus Lockdown; this is all we know
The government believes that these flash sales are hurting small businesses in general. The idea with the proposed e-commerce rules to treat all businesses, large or small, equally. The proposed rules also highlight that the government has received countless complaints from consumers, merchants and associations against widespread fraud and unfair business practices taking place in the e-commerce ecosystem. By putting an end to flash sales, the Ministry of Consumer Affairs aims to fight fraud and unfair trade practices.
The ministry noted in the draft e-commerce policy, “some e-commerce entities undertake to limit consumer choice … return ‘order with another seller controlled by the platform. “This prevents a level playing field and ultimately limits customer choice and raises prices,” the ministry added.
Classic flash sales continue!
-The ministry clarified that “classic” flash sales are not prohibited. Only “predators” will be prohibited. We expect the government to shed more light on these given that the policy currently leaves a lot of gray area.
It is said that “Conventional flash sales by third-party sellers are not prohibited on the e-commerce platform. But some e-commerce entities are committed to limiting consumer choice by engaging in “back-to-back” or “flash” sales in which a seller on a platform has no inventory or control capacity. order processing, but simply place a ‘flash or back to back’ order with another seller controlled by the platform. This prevents a level playing field, ultimately limits customer choice and increases prices. “
Currently, the proposed policy does not specify whether large festive sales are not prohibited in the country. We expect the government to shed more light on the same in the days to come.
Other proposed e-commerce rules
– The proposed rules state that e-commerce companies will now have to mention the name and contact details of any importer from whom the product was purchased. The government has asked platforms to provide a filtering mechanism from which customers can determine the origin of products before making a purchase.
-The policy also stated that e-commerce companies should provide alternative suggestions to customers / buyers for domestic products before the purchase is made.
– The rules also prohibit e-commerce platforms from displaying deceptive advertisements.
-The ministry alleged that e-commerce platforms manipulated search results to promote certain sellers. The rules suggest a ban on deceiving users by manipulating search results. With the new policy, the government aims to bring transparency to e-commerce platforms to curb what they call “unfair practices”.
-Just like the government has ordered Facebook, WhatsApp and other social media platforms to appoint nodal and compliance officers, it now wants e-commerce companies to appoint a compliance officer, a nodal manager and grievance officers resident in India.
-The proposed e-commerce rules also prohibit e-commerce platforms from listing associated parties as sellers to sell directly to customers. Ecommerce platforms will be required to provide the best before or best before date to allow consumers to make an informed purchasing decision.
No comments from Flipkart, Amazon, or any other ecommerce platform at this time.