create your online store

Back to News

We are not defying pricing rules: Ecommerce Firms

Update On :24 August 2016

We are not defying pricing rules: Ecommerce Firms

Ecommerce companies have assured the government they are not flouting pricing rules or foreign investment guidelines. The Department of Industrial Policy & Promotion (DIPP) and the Ministry of Consumer Affairs recently discussed with online retailing platforms complaints against them. 

Major ecommerce companies present at the meeting told the government they have not influenced the pricing of products directly or indirectly and that all discounts advertised were offered by the sellers, a senior official said. 

The government also asked the online retail platforms to use social media for more effective and timely redressal of consumer complaints. Companies showed their commitment towards ensuring all compliance and we have also not received any complaint on violation on their part ever since, the senior official said. 

Offline retailers have raised concerns with the government over ecommerce companies offering discounts to consumers and circumventing foreign direct investment norms by infusing overseas capital into retailing directly to customers. 

The FDI policy announced by the DIPP on March 29 states that ecommerce companies work on a "marketplace model" in which 100 per cent FDI is allowed. Such companies are only a technological platform provider that act as a facilitator between buyers and sellers. They are not allowed to influence prices, offer products on sale or discount and no single vendor can account for more than a fourth of total sales. 

Warranties and after-sales services have to be provided by the sellers and not the marketplace provider. The government has also formed a 12-member committee under NITI Aayog CEO Amitabh Kant to look into ecommerce-related issues, including FDI policy and taxation. The committee includes secretaries of DIPP, Department of Economic Affairs and Department of Electronics & IT, among others. 

News Source From :

Image Courtesy :

Popular post

create your online store