Services should not be part of e-commerce definition: Assocham

Services should not be a part of the definition of e-commerce since FDI is already permitted in the sector, industry body Assocham has suggested the Commerce and Industry Ministry.
The definition of e-commerce should include transactions taking place through the use of Internet or any other electronic means, the chamber said.
"This will automatically include mobiles, tablets or any other electronic device," it added.
The Commerce and Industry Ministry is consulting stakeholders on various aspects of FDI in e-commerce, including its definition.
It said that the ministry has sought suggestions on the definition, which says e-commerce means buying and selling of goods and services, including digital products, conducted over network of computers or TV channels specifically designed for the purpose.

As part of suggestions to the ministry on FDI policy for e-commerce sector, the chamber has also suggested that since the Payment and Settlement Systems Act, 2007 of the RBI is already in place, any other regulatory framework is not required.

On the issue that packaging and delivery of goods should be responsibility of the seller, it said that it should be left between the seller and marketplace provider to decide who will pack and deliver the goods.
On the collection of payments by seller, it said since most of the sellers comprise of SMEs which have limited knowledge and risk taking capabilities, it will become difficult for them to collect the payment from all buyers across the country.

"The payments should be collected by the e-commerce marketplace provider who will then remit it to the seller," it added.
It also suggested that the entities involved in e-commerce should not engage in any anti-competitive practices.
On the issue that data of consumers should be sole property of seller and not of the website owner, Assocham said that ownership of the sensitive data should be left between the seller and e-commerce marketplace provider to decide among themselves.
"The information of the customers includes his sensitive information like his credit card and bank account details which he might not like to share with all," it said.

It added that the guidelines of FDI policy for cash and carry wholesale trading and B2B e-commerce should be kept separate.