New E-Commerce Rule : Govt plans to bring stricter e – commerce rules, flash sales may be history
The Indian Government has announced the amendments to India’s Consumer Protection (E-Commerce) Rules, 2020.
The decision has been taken to reduce the unfair trade practices and protect the consumers from getting cheated.
The major change is the ban on certain kinds of flash sales.
Key Changes :
Asper the new draft regulations, no e-commerce entity shall allow any display or promotion of misleading advertisements, whether in the course of business on its platform or otherwise.
Amazon and Flipkart, among others, will have to appoint a Chief Compliance Officer, a Resident Grievance Officer and a nodal contact person in India.
They will also have to provide a filter mechanism on their websites from where customers can figure out the origin of the products quickly before making a purchase.
The norms will come into effect, every e-commerce shall establish an adequate grievance redressal mechanism having regard to the number of grievances ordinarily received by such entity from India.
In a major push for domestic products, it has also suggested that the companies should provide alternative suggestions to customers before he/she makes a purchase to ensure fair opportunity for “domestic goods”.
Confederation of All India Traders (CAIT), which has long demanded stricter e-commerce norms to protect the interest of offline traders, has hailed the draft norms.
The draft has proposed that e-commerce companies will also not be allowed to organise flash sale of goods bringing under question a lot of sale festivals organised throughout the year by retailers such as Amazon and Flipkart.