In a statement, the Confederation of All India Traders (CAIT) said: "In absence of any policy, ecommerce portals will play their dirty game of predatory pricing, deep discounting and loss funding and vitiate the ecommerce market of the country".
It also urged Commerce and Industry Minister Suresh Prabhu to restrict preferred sellers of ecommerce firms from selling products on these portals, claiming that these sellers are instrumental in malpractices.
The government has set up a group of secretaries to look into the issues, with concerns being raised on some proposals of the draft e-commerce policy.
The initial draft e-commerce policy had suggested several steps to promote growth of the fast growing sector.
The draft stated that any group company of an online retailer or marketplace may not be allowed to directly or indirectly influence the price or sale of products and services on its platform, a move that could completely restrict e-tailers from giving deep discounts.
The draft has suggested introduction of a pre-set timeframe for offering differential pricing or deep discounts by e-commerce players to customers.
Further, the draft recommended permitting 49 per cent foreign direct investment (FDI) in inventory-based business-to-customer e-commerce model. Currently, FDI in such businesses is prohibited and it is allowed only in the marketplace model.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)