The rules made by the government for e-commerce will increase the cost of online retail companies especially. According to industry experts, Amazon and Walmart’s Flipkart will have to change their business structure. The Ministry of Consumer Affairs has released the draft amendments to the Consumer Protection (E-commerce) Rules 2020.
Flash sale ban.
The draft amendments include provisions to limit flash sales on e-commerce platforms and to break the practice of promoting private brands. A provision has also been made to appoint agreement officers on behalf of companies and to put the responsibility of the customer on the e-commerce platform in case of loss to the customer due to the seller’s abandonment.
Market to be $200 billion by 2026.
According to experts, this rule will have a deep impact on the Indian e-retail market from Tata’s Big Basket, Reliance Industries’ JioMart, SoftBank-backed Snapdeal to market leaders like Amazon and Flipkart. According to an estimate, its size can increase to $ 200 billion by 2026.
Time till 6th July for suggestions and comments.
E-commerce companies have been given time till July 6 to send suggestions and comments on the proposed rules. Through this, the government wants to bring transparency on the e-commerce platform. After that the government will review or implement those rules.
Government’s set out to implement strict rules for foreign investment.
According to industry experts, Amazon and Flipkart may oppose these proposals. Some believe that the government is trying to impose strict rules for foreign investment in this way. Due to the implementation of these rules, Flipkart and Amazon will not be able to enter into specific business agreements with sellers.