New Delhi, Feb 24 (KNN) The Confederation of All India Traders (CAIT) has sent a memorandum on current position of e commerce in India which is greatly vitiated by e-commerce companies majorly by US based e commerce companies.

The CAIT has urged US President Donald Trump to advise US based Companies to follow rules, laws and procedures in India and not earn a bad image of USA.

The memorandum has been sent through US Ambassador in India Kenneth Iyan Juster.

While calling for more closer bilateral trade between India & USA, the CAIT in its memorandum said that the Government of India while adopting a liberal approach in facilitating global e commerce companies to conduct their business activities in India formulated a well defined FDI policy for making investments in India which also carries e commerce sector.

It is highly regretted that this gesture of the Indian Government has been taken to ride and various e-commerce companies including US based e commerce companies have made it a habit to flout and violate the FDI policy by adopting predatory pricing, deep discounting, exclusive sale of goods, having preferential seller system and influencing the prices and thus creating an uneven level playing field which is most disadvantageous to small businesses of India.

Such Companies have found ways and means to avoid explicit provisions of FDI policy thereby creating massive distortion & disruption not only in e commerce but also in retail trade of India and thus bringing a bad image about USA and it’s business ethics.

CAIT National President B C Bhartia & Secretary General Praveen Khandelwal said that Its is a matter of fact that such US based e commerce companies are habitual law offenders and are facing several investigations in different Countries and have also been penalised for their unethical business practices.

It is highly regretted that e commerce has become a source for promoting and encouraging counterfeit and pirated goods which has also been duly acknowledged by Department of Homeland Security, said CAIT.

Both leaders appreciated that the U.S. Department of Homeland Security's Office of Strategy, Policy, and Plans recently released a 54-page report on "Combating Trafficking in Counterfeit and Pirated Goods," promising to strengthen scrutiny, enforcement and punishment to tackle what it calls a rising problem in e-commerce.

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