Following complaints from retailers, Govt directs e-commerce players to strictly adhere to guidelines

New Delhi, August 23 (KNN) The Central Government has 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. 

This was instructed to the online retailers during a recent meeting held in the Commerce and Industry Ministry.

According to officials, 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.

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.

The meeting was attended by secretary in the DIPP Ramesh Abhishek, the consumer affairs secretary and some big online retailers.

As per the guidelines issued by the DIPP, FDI has not been permitted in inventory-based model of e-commerce. The guidelines also states that such entities will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field. (KNN Bureau)