Big sales announced by e-commerce giants upset retailers; traders to approach PM over flouting of FDI norms

New Delhi, Oct 3 (KNN) The retailers and traders across the country are upset with the e-commerce players for announcing big sales during the festive season and thus uneven level playing field for them. The traders’ body has out rightly called it “Flouting of FDI Norms” by the online retailers.

“Once again the online retailers have begun their agenda to flout the FDI policy right under the nose of the Government and it is sad that no action is being taken against them for violation of the FDI policy,” said the Confederation of All India Traders (CAIT) while reacting on big sales being conducted by several renowned online retailers.

The traders have alleged that this is the second time after the release of FDI Policy 2016 when such violations are openly done by online retailers.

“As per FDI policy, it is clearly established that online retailers who have received FDI will act as marketplace only where they will provide technology platform and in no way they can influence the prices and also they are under obligation to maintain level playing field. But what is happening,” said CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal.

“By organising big sales these online retailers are emphatically influencing the prices and creating an uneven level playing field which is contrary to the FDI policy,” alleged the traders’ apex body.

CAIT said despite the not that they cannot offer any discount, they are offering discounts on their portals and no one is checking them.

Big public advertisements have been inserted to lure the public and must be to the knowledge of one and all but no one is ready to bell the cat, CAIT added.

Such an act is creating an uneven level playing field much to the disadvantage of offline retailers but no one is bothered about offline retail trade which is often called as backbone of Indian economy, it lamented.

Having FDI on their side, the online retailers are bent upon in wrecking the backbone of economy-added trade leaders.

While questioning the business module of online retailers, both Bhartia & Khandelwal said that if these online retailers are really operating as a marketplace where they are allowed to undertake Business to Business (B2B) transactions then where is the need of big advertisement campaigns addressing the general public.

“It amply shows that they are indulging in Business to Consumer (B2C) activities which are not permitted under the FDI policy,” said CAIT.

CAIT has decided to submit a petition to Prime Minister and Finance Minister invoking their attention towards gross violation of FDI policy by online retailers; it said adding that if need be we will also seek justice from legal course-said trade leaders.

The Central Government had in August asked online retailers to strictly comply with the e-commerce guidelines following complaints by offline players on the advertisements being given by them in newspapers announcing sale. 

Ministry had received lot of complaints by stakeholders including traders’ body Confederation of All India Traders (CAIT).

Earlier the traders’ body CAIT had charged Amazon, Flipkart and Snapdeal of violating Foreign Direct Investment (FDI) policy for e-commerce of the Government. CAIT had filed a complaint with DIPP calling for action against these companies for blatant violation of the policy. ‘

The policy was released on 29th March, 2016 by Department of Industrial Promotion & Policy (DIPP) under Ministry of Commerce & Industry. (KNN Bureau)