The foreign direct investment (FDI) rules for e-commerce companies should be applicable to domestic online players also, to restrict them from adopting any unethical business practices, said the Confederation of All India Traders (CAIT).
“The restrictions imposed in FDI policy in e-commerce should also be made applicable to domestic ecommerce players to ensure a level playing field and fair competition,” CAIT secretary general Praveen Khandelwal said Wednesday.
Last month, the government updated FDI rules to bar any entity related to an e-commerce platform from selling on that site, limit how much one vendor can sell there and prohibit e-tailers from giving any preferential treatment to any supplier.
The new framework will come into force on February 1 and the platforms will have to confirm compliance with the guidelines by September 30 of every year for the preceding financial year to the Reserve Bank of India.
ET reported Tuesday that Amazon and Flipkart had sought more time to comply with the policy.
The Department of Industrial Policy and Promotion (DIPP) had clarified on January 3 that the private labels of online platforms will not suffer on account of the updated rules.
The traders’ body asked the government not to give into the demands of multinational e-commerce players and American industry chambers to amend rules.
Khandelwal said the companies that do not comply with the policy should not be allowed to operate their e-commerce portals or raise funds until they have obtained a compliance certificate.
“We want the government to institute a probe into the business activities of major e-commerce players over the last two-three years. Those found violating the policy should be strongly punished,” he said.
“The restrictions imposed in FDI policy in e-commerce should also be made applicable to domestic ecommerce players to ensure a level playing field and fair competition,” CAIT secretary general Praveen Khandelwal said Wednesday.
Last month, the government updated FDI rules to bar any entity related to an e-commerce platform from selling on that site, limit how much one vendor can sell there and prohibit e-tailers from giving any preferential treatment to any supplier.
The new framework will come into force on February 1 and the platforms will have to confirm compliance with the guidelines by September 30 of every year for the preceding financial year to the Reserve Bank of India.
ET reported Tuesday that Amazon and Flipkart had sought more time to comply with the policy.
The Department of Industrial Policy and Promotion (DIPP) had clarified on January 3 that the private labels of online platforms will not suffer on account of the updated rules.
The traders’ body asked the government not to give into the demands of multinational e-commerce players and American industry chambers to amend rules.
Khandelwal said the companies that do not comply with the policy should not be allowed to operate their e-commerce portals or raise funds until they have obtained a compliance certificate.
“We want the government to institute a probe into the business activities of major e-commerce players over the last two-three years. Those found violating the policy should be strongly punished,” he said.
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