Expressing concerns over huge discounts being offered by e-commerce firms, traders body CAIT today asked the Commerce and Industry Ministry to take steps to monitor and regulate online businesses.
In a letter to Commerce and Industry Minister Nirmala Sitharaman, National General Secretary of Confederation of All India Traders (CAIT) Praveen Khandelwal has demanded for setting up of a regulatory authority for e-commerce business in India.
"We invoke your kind and immediate attention to ongoing sale offers conducted by various e-commerce companies since last three days...They are offering discounts from 20 per cent to 70 per cent, whereas traders are forced to sell same products in offline markets at a higher prices since their purchase price is on a very higher side," he said in his letter.
It is a serious matter as it is badly affecting the offline market.
"Such a practice if continued, may result into unavailability of products in offline market which will further result into a monopolistic situation which will be controlled and dominated by the e commerce retailers," he added.
He said it amounts to predatory pricing and the government should take necessary steps to control this.
"In the present case, the traders are in a disadvantageous position and can not compete with online retailers," Khandelwal said.
