Flash sales bar for recommendations on e-commerce bigger merchandise

After aligning defying social media companies, the Centre appears to be pursuing major business such as Amazon and Flipkart by proposing to tighten up the Consumer Protection (E-Commerce) Rule by 2020. On Monday the Ministry released a notification in which stakeholders requested proposals to alter the Rules.

A Chief Compliance Officer and a Resident Grievance Officer will be among the significant changes proposed by the Minister. It is also on the table to comply with government requests for information sharing, register with DPIIT, outlaw ‘flash sales’ with deep discounted printing and prevent deceptive marketing. E-commerce companies must now register with DPIIT and must show their registration numbers within a stipulated period.

The country of origin must be presented in case of any imported items with the seller’s name so as not to bias against national salesmen by the ranking methods. The chief compliance agent shall guarantee that the regulations are implemented and the resident complaint officer shall remedy concerns from users.

 In addition, e-tailers are to submit information for investigations, identity verification or cyber safety within 72 hours requested by government agencies. The administration has allowed 15 days for the stakeholders to express their views.

Archana Tewary, partner, J Sagar Associates, said the amendments are aimed at holding e-commerce companies operating in India responsible for this. However, it needs to be observed how the changes are so far-reaching, she noted.

The announcements are at the time of the e-commerce companies being brought to the Karnataka Special Court to demand an examination of their business methods by the Confederation of All India Traders (CAIT). CAIT Secretary-General Praveen Khandelwal welcomed the notification as the first logical move to equip e-commerce.

He alleged that the severe breach of the FDI and other rules by the internationally funded e-commerce companies pushed the closure of thousands of shops (brick-n-mortar). Sources indicate that Flipkart has designated key officials to meet the standards Amazon declines to comment.