CAIT files complaint against Amazon, Snapdeal and Flipkart for flouting FDI Policy

New Delhi, Aug 10 (KNN) The Confederation of All India Traders (CAIT) has charged Amazon, Flipkart and Snapdeal of violating Foreign Direct Investment (FDI) policy for e-commerce of the Government. The traders’ body has filed a complaint with DIPP today 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.

“Under FDI policy these companies cannot undertake retail trading activities but these e- commerce portals being habitual offenders of government policies,. They are circumventing the law and are engaged in B2C activities which is prohibited for e-commerce marketplace portals,” alleged CAIT in a statement.

In a complaint sent today to Secretary, DIPP,  CAIT has demanded not only to restrict these companies from conducting such sales but also for putting a stay on the operation of their respective portals. It has also demanded that immediate necessary action should be taken against them for violation of FDI policy.

CAIT said that as per FDI policy guidelines issued on March 29^th, 2016, e-commerce portals receiving FDI can conduct business activities for B2B business and will not be allowed to B2C business and the advertisements issued by them in past few days show them soliciting retail customers at their portals and influencing the prices and creating an uneven level playing field.

CAIT further said “Whereas as per Clause 2.3(ix) of the policy e-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field. As per clause 2.3 (ii) Marketplace e-commerce entity is permitted to enter into transactions with sellers registered on its platform on B2B basis.”

CAIT National President B. C. Bhartia & Secretary General Praveen Khandelwal jointly said that these e- commerce portals are circumventing the law and are engaged in Business to Consumers (B2C) activities which are prohibited for e commerce marketplace portals. By inserting big advertisements in the media, they are attempting to address consumers directly which is contravention of the aforesaid guidelines.

They explained “It is further submitted that it is also an attempt to influence the sale price directly or indirectly and create an uneven level playing field. They do not have ownership of the inventory of the products purported to be sold on their technology platform, how can they offer discounts or discounted prices on the products for which they are not the owners-questioned trade leaders.” (KNN Bureau)