Trade bodies to discuss amendments to e-commerce rules this week
PremiumAccording to a govt official, the decision to update the rules is a function of the evolution of e-marketplaces
E-commerce firms have begun deliberations on the new amendments proposed by the consumer affairs ministry on the Consumer Protection (E-commerce) Rules, 2020, as firms and trade bodies look to submit recommendations to the government by 6 July.
Major industry bodies, including Internet and Mobile Association of India (IAMAI), Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (Ficci) and National Association of Software and Service Companies (Nasscom) are expected to hold meetings with e-commerce firms and other stakeholders this week, according to three people aware of the discussions.
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The Associated Chambers of Commerce and Industry of India (Assocham) has asked stakeholders to submit their suggestions by 29 June, said one of the people cited above.
The new amendments have come as a surprise to e-commerce firms, which weren’t expecting the department of consumer affairs to lay down specific practices governing their operations, two senior e-commerce executives told Mint, requesting anonymity.
This comes at a time when the Department for Promotion of Industry and Internal Trade (DPIIT) is also mulling a new e-commerce policy to strengthen governance on counterfeit products and focus on consumer data, a government official said in February.
“Our rules are limited to safeguarding the interest of consumers that also incorporate safeguards against unfair trade practices. But we are not into regulating the trade as such, because that is a part of DPIIT. So, DPITT is already bringing in their e-commerce policy and I’m sure they would be addressing many things which nationally we cannot address," said Nidhi Khare, additional secretary, ministry of consumer affairs, food & distribution, at a press conference on Tuesday.
Khare said the decision to update the rules is a function of the evolution of online marketplaces, which today own private labels and services.
CII, Nasscom, Assocham and Flipkart didn’t respond to Mint’s queries until press time. An Amazon spokesperson said it is too early to comment.
As multiple government ministries begin framing rules for the $38 billion Indian e-commerce industry, addressing regulatory bottlenecks and ambiguities may be the overriding concernfor e-commerce firms, according to several industry executives Mint spoke to.
“While only 3-4% of overall retail, one cannot deny the large-scale impact e-commerce has on consumers. It is imperative that the government looks to remove ambiguities which can arise from multiple ministries governing the sector and appoint a single nodal agency and streamline rules for online marketplaces," said Ankur Pahwa, partner and national leader, e-commerce and consumer internet, EY India.
While press note 2 of 2018 had prohibited e-marketplaces from direct ownership or control over seller inventory, the new proposed amendments have further detailed the government’s stance. This include tightening the rules on ‘flash sales’ for prevention of any preferential seller treatment and proposed a ban on sale of any goods from related parties of the marketplace.
tarush.b@livemint.com
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