PMO Scrutinises National E-commerce Policy Impact On Small Retailers

New Delhi, Jan 1 (KNN) The Prime Minister’s Office (PMO) is currently analysing the National e-Commerce Policy to assess its potential impact on domestic retailers and small players, according to two sources familiar with the matter.

The policy, now in its final stages, will be released post-PMO approval, aiming to safeguard the interests of both consumers and the industry, a source mentioned, reported Mint.

This development gains significance in light of the draft policy proposed by the Union commerce ministry, which advocates for relaxations benefiting e-marketplace giants like Amazon and Flipkart.

The PMO's evaluation follows a comprehensive meeting to be convened by the Department for Promotion of Industry and Internal Trade (DPIIT), responsible for crafting the national e-commerce policy.

This meeting will include stakeholders from e-commerce firms and a domestic traders’ body.

Key relaxations suggested in the policy encompass separate norms for marketplace and inventory models, the appointment of nodal grievance officers, no mandatory registration on the Open Network for Digital Commerce (ONDC) for major e-commerce players, and the absence of provisions for an independent regulator for online retail platforms.

Expressing concern, an anonymous e-commerce industry leader questioned whether these relaxations would persist in the final policy, given the contentious nature of the e-commerce landscape and opposition from traditional retailers.

Praveen Khandelwal, General Secretary, Confederation of All India Traders (CAIT), highlighted the existing uneven playing field for small businesses in the current e-commerce scenario, urging the immediate notification of the e-commerce policy and its rules.

CAIT, representing domestic traders, demands robust e-commerce rules to combat predatory pricing, deep discounting, and loss funding.

“Any entity having an economic interest should not be allowed to sell products on its own e-commerce platforms," Khandelwal added, addressing concerns related to white-label practices by marketplace platforms.

The proposed policy lacks provisions for an independent regulator for online retail platforms, and e-commerce firms will be required to adhere to the Digital Personal Data Protection Act for data-related issues, as the proposed policy does not cover this area, according to a senior official.

(KNN Bureau)