Centre May Ban Flash Sale By E-Commerce Platforms After Retailers Raise Concern

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The Logical Indian Crew

Centre May Ban Flash Sale By E-Commerce Platforms After Retailers Raise Concern

According to the Ministry of Consumer Affairs, it received several complaints from retailers, traders that the e-commerce platforms are indulging in widespread cheating and unfair trade practices.

The Ministry of Consumer Affairs, Food and Public Distribution on Monday, June 21, proposed a series of amendments in the Consumer Protection (E-Commerce) Rules, 2020, imposing a new registration for online retailers and a ban on flash sales organised e-commerce platforms.

According to media reports, the measures have been taken after the central government received several complaints from aggrieved consumers, retailers, and traders association complaining that the e-commerce platforms being indulging in unfair trade practices, reported the Times Of India.

Representatives of local traders and sellers described the proposed norms as a 'step to purify the e-commerce landscape', reported The Indian Express.

What Are The New Rules?

According to the release containing the new rules, e-commerce companies have to register with the Department of Promotion for Industry and Internal Trade (DPIIT).

The companies also have to furnish information to the government department that would be authorised to investigate incidents in order to prevent, verify or prosecute offences being committed.

The rules also state that the companies have to submit information sought by the government officials within 72 hours of the receipt of the order.

Earlier Notification

The Centre had earlier notified the Consumer Protection (E-Commerce) Rules in July 2020 for online retailers registered in India or abroad, the rules were mainly for offering goods and services to Indian customers.

The original rules focused on providing transparency about the product, and the amendments to curb circumventing the laws. For the new rules, the government has sought feedback from the stakeholders within 15 days by July 6.

What Is Flash Sale?

A flash sale is a sale by e-commerce platforms at a reduced price, high discounts, or any other promotions or attractive offers for a certain span of time.

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Writer : Sanal M Sudevan
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