Online mktplaces' cashbacks distort level-playing field: RAI

Retailers Association of India (RAI) has said that cashback or the money-back guarantee offers made by marketplace e-commerce players should be treated as influencing the selling price.
In a letter to Commerce and Industry Minister Nirmala Sitharaman, RAI said with the objective of ensuring a level playing field for all channels of retail in India, the ministry should come out with certain clarifications so that there is no violation in the implementation of the spirit of the policy.
It said that since the guidelines forbid marketplaces from participating in pricing directly or indirectly, all discounts, coupons, vouchers be offered by the individual seller.

"These should not be issued by the marketplace. Thus, a basket level discount/cash back would have to be restricted to the basket/order of each seller and not at a consolidated level," it said.
"Cashback/money back guarantee offered by a marketplace should be considered tantamount to influencing selling price," the association added.
It also said that consolidated orders covering multiple sellers should not be permitted.

"Considering that no seller should be having more that 25 per cent share on the market place, the marketplace must file monthly disclosure with relevant (Enforcement Directorate) authority, giving details," it added.
RAI also said that a full seller profile, including tax registration details, contact numbers, PAN numbers should be available on the online platform and accessible to consumer.

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Jayachandra said the Cabinet also gave its nod for alloting land for setting up the Advanced Polymer Design and Development Research Laboratory cum High Learning Centre.
The Central Institute of Plastic Engineering and Technology (CIPET), under Union Chemicals and Fertilizers Ministry, had already signed an MoU with the state government to set up the lab, he said.
The estimated investment was Rs 87 crore and the state would share 50 per cent of the project cost, he said.
"The centre will act as a multi-functional one-step facility with specialisation in product development in Polymer sector. It will also conduct R&D, product tests and evaluations and commercialisation of technology," he said.

The proposed centre will play a pivotal role in developing new plastics technologies, processes and products to enhance the use of plastics for promotion of industries and betterment of the people, the Minister said.
Jayachandra said the cabinet had given the green signal to Affordable Housing Policy, which will ensure that the government provide private developers and community borrowers financing option to meet the objective of affordable housing.
The policy will address numerous challenges faced by private developers such as issues with land acquisition and wide array of clearances from government bodies, which plays an ugly role in delaying the project and mounting the cost significantly, Jayachandra said.