Amazon challenges Delhi High Court judgement forbidding sale of Amway, Oriflame on platform
Amazon Seller Services has challenged a recent Delhi High Court judgement that prevents e-commerce platforms from selling direct selling businesses Amway and Oriflame’s products without authorisation.
Amazon has sought to appeal the Delhi High Court’s ruling against selling direct selling businesses’ products on multi-brand e-commerce platforms without consent, ET Bureau reported.
“While direct selling companies contribute a minuscule percentage to sales on e-commerce platforms as of now in India, Amazon is of the opinion that any court order restraining e-commerce platforms to sell specific categories of products might set a precedent for other categories as well,” an industry source told ET Bureau about the case.
Amway had taken Flipkart to the Delhi High Court last year for the “unauthorised” retailing of its products on its online platform. The Delhi High Court ruled in favour of Amway and set the precedent that direct selling businesses had to give permission to multi-brand e-commerce retailers to allow them to sell their products, made formal in July this year. Amazon hopes to overturn this ruling.
Amway and Oriflame, direct selling businesses that retail cosmetics, skincare, and personal care products, lead India’s direct selling market along with Modicare. The Parliamentary Standing Committee on Finance has posited that regulations to distinguish between legally operating businesses and pyramid schemes should be created.
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