CAIT urges government not to relax any rules in upcoming e-commerce regulations

By

Isabelle Crossley

Published
Jan 3, 2022

The Confederation of All India Traders has urged the central government not to relax regulations for e-commerce retail businesses in its upcoming e-commerce regulations.

As the unveiling of the Union Government’s eagerly awaited e-commerce regulations approaches, albeit without a set date, CAIT has launched yet another campaign to protect the interests of Indian businesses. CAIT has accused foreign-own e-commerce giants including Amazon India and Walmart/Flipkart of trying to influence the government to alter the draft e-commerce regulations to favour them. The traders’ body has also accused these businesses of predatory pricing, deep discounting, monopolising the market, and facilitating the sale of illegal goods. 
 
“Any dilution in the proposed e-commerce rules under CPA (Consumer Protection Act) will percolate a strong feeling across the country that the government has succumbed to some hidden pressures and the e-commerce landscape has been offered to the global e-tailers to twist the e-commerce to their advantage even at the cost of flouting the laws and the policy,” read CAIT’s letter to Union Commerce and Industry Minister Piyush Goyal, Indo-Asian News Service reported. 

CAIT asked the government to use the upcoming regulations to create a level playing field online to enable domestic businesses to flourish.

“We are of the considered opinion that provisions prohibiting deep discounts and flash sales, making e-marketplaces responsible for the quality of goods sold on their platforms, setting up of robust grievance redressal mechanisms, stoppage of market-distorting discount offers, mis-selling of goods and services, equal treatment of all sellers registered should be the integral and non-compromising points,” read CAIT’s letter. 
 
CAIT has staged pan-India and localised strikes against foreign-owned e-commerce business’ operational practices.

“If the even level playing field is not granted, the traders of the country shall be compelled to wind up their businesses in phase wise manner because of the manipulative and unethical business practices of the e-commerce companies,” CAIT wrote.