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Published
Jul 12, 2021
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CAIT battles foreign businesses over draft e-commerce regulations

Published
Jul 12, 2021

The Confederation for All India Traders has accused foreign-owned e-commerce businesses of wrongfully stating that the government’s draft e-commerce regulations would negatively impact foreign direct investment to India. 

CAIT has again urged the government to go ahead with its proposed e-commerce regulation amendments - Alto Nivel

 
CAIT has urged Union Minister for Commerce and Industry Piyush Goyal to roll out the proposed new set of e-commerce regulations immediately and praised Goyal for addressing what it sees as current issues in the industry. The traders’ body has also asked the government to create a regulatory body to regulate and monitor e-commerce business in India, Indo-Asian News Service reported.

The draft e-commerce rules under the Consumer Protection Act include preventing flash sales, a technique used by many foreign-owned e-commerce businesses with the capital to invest in these kinds of promotions. The draft rules also include stricter grievance redressal procedures and a ban on misleading advertising. CAIT argues that many foreign-owned businesses will have to change their business model in India if the rules come into effect, and are wrongfully alleging that India’s reputation as an investment-friendly country would be harmed if these rules are rolled out.  

“They are trying to create a false narrative that rules are stringent, will increase compliance burden, will discourage FDI in India, and malign the image of India in the global market,” said CAIT general secretary Praveen Khandelwal about foreign businesses’ response to the proposed e-commerce regulations, IANS reported. 
 
The government has extended the deadline by which to submit any comments on the draft e-commerce policy to July 21 from the previous deadline of July 6. The draft regulations have been met with mixed reviews from different industry players.  

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