E-commerce corporations and trade associations gave their suggestions to the federal government, calling for a number of adjustments to the proposed Consumer Protection (e-commerce) Rules, 2020, on Wednesday, the final day to submit their suggestions.
The entities mentioned the brand new rules could be a significant deterrent for the trade. In addition, they may result in roadblocks for a number of small and medium enterprises (SMEs) attempting to promote on-line as they get better from the impression of the pandemic.
Mint reviewed no less than three paperwork submitted to the federal government by trade associations.
Several trade our bodies, together with the Internet and Mobile Association of India (IAMAI), Confederation of Indian Industry (CII), US India Strategic Partnership Forum, US-India Business Council, together with Amazon India and Walmart-owned Flipkart, despatched their representations to the federal government, together with the Prime Minister’s Office.
In their representations, stakeholders argued that the definition of e-commerce proposed by the patron affairs ministry is so broad that it consists of offline institutions comparable to kiranas, which merely play a small half in the fulfilment means of on-line orders.
By widening the definition, the federal government is likely to be risking forcing even smaller sellers to adjust to the proposed e-commerce rules, growing the compliance burden and affecting their ease of doing business, the stakeholders mentioned.
“The broad definition of e-commerce is still unclear, and proposed changes to rules are neither in favour of the consumers nor the sellers. Through the amendments, the government will make it harder for smaller sellers to come online, adversely affecting consumer choice and increasing compliance burden, which may result in price hikes,” mentioned an e-commerce govt on situation of anonymity.
Industry stakeholders mentioned the so-called fall-back legal responsibility on e-commerce corporations for sellers on their platforms goes in opposition to the ideas of international direct funding (FDI) coverage below Press Note 2, 2018, which already bans the platforms from exercising any management over sellers.