 "'E-commerce dream run far from over'")
The Confederation of All India Traders (CAIT) on Wednesday filed a complaint with the department of industrial promotion and policy (DIPP) over sales announced by online marketplace companies Amazon, Flipkart and Snapdeal.
In its complaint, the CAIT alleged Amazon, Flipkart and Snapdeal were violating foreign investment norms for e-commerce issued by the government in March. The trade body has not just demanded these companies be restricted from conducting sales, but wants their operations to be halted.
According to Praveen Khandelwal, secretary-general of the CAIT, e-commerce companies were attempting to address consumers directly by issuing advertisements in newspapers and other media in contravention of the rules.
“It is an attempt to influence the sale price. They do not have ownership of the inventory of the products sold on their platform, how can they offer discounts?” Khandelwal said.
“E-commerce portals are circumventing the law by engaging in business-to-customer activities, which is prohibited for online marketplaces,” he added.
Amazon was the first one to announce its Independence Day sale. Snapdeal has also launched its Wish for India sale. Flipkart started its Freedom Sale on August 10.
Experts said for the next six months online marketplaces would conduct a host of festival sales.
In its complaint, the CAIT alleged Amazon, Flipkart and Snapdeal were violating foreign investment norms for e-commerce issued by the government in March. The trade body has not just demanded these companies be restricted from conducting sales, but wants their operations to be halted.
According to Praveen Khandelwal, secretary-general of the CAIT, e-commerce companies were attempting to address consumers directly by issuing advertisements in newspapers and other media in contravention of the rules.
“It is an attempt to influence the sale price. They do not have ownership of the inventory of the products sold on their platform, how can they offer discounts?” Khandelwal said.
“E-commerce portals are circumventing the law by engaging in business-to-customer activities, which is prohibited for online marketplaces,” he added.
Amazon was the first one to announce its Independence Day sale. Snapdeal has also launched its Wish for India sale. Flipkart started its Freedom Sale on August 10.
Experts said for the next six months online marketplaces would conduct a host of festival sales.
