INDIAN GOVERNMENT’S NEW COMMERCE RULES

The Department of Consumer Affairs has drafted new e-commerce rules. These rules would impact the growing route of retail, whereas some rules are still under debate. Firstly, the Government put a blanket ban on all the flash sales, but later it was mentioned that this ban was not implied on the conventional sale. Another major change would be that E-tailers should not put-up misleading advertisements regarding discounts, prices and guarantee of products. This will impact the growing online business. According to the new commerce rules the companies are supposed to mention the country of origin, which is a laborious task for companies like Amazon and Flipkart as there are millions of products on their online portals. They are also supposed to mention alternative local products every time a consumer searches for a foreign product. E-tailers are not supposed to mislead customers by tweaking their search results and promoting their brand. Any e-commerce entity holding a dominant position in market should not be allowed to abuse its position. Recently the representative of Amazon, Flipkart and Tata met the Government officials to discuss and raise their concerns about the new e-commerce rules. The key issues discussed were restrictions regarding flash sale, compliance norms for e-commerce and definition of related parties.

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