Traders body CAIT asks govt for robust and unambiguous e-commerce policy

Alleges that FDI policy has been continuously violated by foreign-funded e-commerce firms right under govt's nose, no action taken against such companies so far

In a virtual meeting organized by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce on Tuesday related to the e-commerce policy framework, the Confederation of All India Traders (CAIT) strongly argued for a robust and unambiguous e-commerce policy essentially having an empowered Regulatory Authority on the pattern of TRAI. Besides, CAIT, which represents about 70 million traders, the meeting was attended by All India Consumer Products Distributors Federation (AICPDF), Retailers Association of India, Laghu Udyog Bharti,  Federation of Small Industries (FISME). Other prominent e-commerce players, Amazon, Flipkart, Tata, Reliance, udaan, Pepperfry, Shopclues and Snapdeal also attended the meeting which was chaired by Additional Secretary of DPIIT  Anil Agarwal along with several other senior officials of the Ministry.

CAIT Secretary General Praveen Khandelwal advocating for a well defined coupled with definite parameters e-commerce policy, regretted that the explicit provisions of Press Note 2 of the FDI (foreign direct investment) Policy have been continuously violated by foreign-funded e-commerce companies right under the nose of the Government and no action has been taken against them so far. He said that the e-commerce policy should have clear stipulations about transparent operations of e-commerce platforms, easy accessibility and adequate grievance redressal system. It should also include non-discriminatory access of marketplace platforms to all stakeholders and value chain, avoidance of conflict of interest between marketplace platforms, sellers and various service providers on the platform.

Khandelwal strongly advocated for mandatory registration of each commerce entity operating business activities in the country, mandatory and strict KYC norms for the sellers. He said there should be a clear distinction between marketplace and inventory models of e-commerce platforms, check on sale of prohibited items. He also argued that all goods traded or services provided through any digital mode including social media platforms, social commerce and WhatsApp groups must be covered under the definition of e-commerce. Several speakers also advocated the need for the removal of the mandatory GST (goods and services tax) number barrier which restricts small traders, artisans, craftsmen, karigars to onboard e-commerce.

Surprisingly, CAIT said the e-commerce companies attending the meeting merely said that they have made a note of the concerns raised in the meeting and will submit their views in writing to the DPIIT. However, they also said that they are engaged in various activities pertaining to the empowerment of small retailers, karigars, artisans and they have opened various channels in their respective portals. CAIT said none of the e-commerce companies refuted the charges made by the CAIT and other associations.