Amazon India is in a talk with the Government on recently framed Ecommerce rules. The top executives of the company have told senior officials that a clause allowing marketplaces to do their own promotions must be worked in if the sector has to grow. Two people directly aware of the development, who spoke on condition of anonymity, told ET that Amazon India executives have expressed concern to officials of the Department of Industrial Policy & Promotion that the rules on marketplace do not provide enough clarity on whether an ecommerce firm can advertise sellers' discounted products under the firm's banner.
Since the new rules were announced on March 29, Amazon India has not advertised deals and discounts on its platforms. The rules do not explicitly ban advertising by ecommerce firms that follow the marketplace model. But there's a strong proscription against "directly or indirectly influencing the price of goods". The people quoted earlier said Amazon's apprehension is that this rule is ambiguous enough for complaints to be made against ecommerce firms' advertisements on sellers' discounted products.
"Anyone can accuse an ecommerce firm of indirectly influencing prices if that firm carries an ad on discounts offered by sellers and brands," one of the persons said, pointing out that as an America-headquartered company, Amazon was seeking complete clarity on a regulatory issue. Amazon, listed on Nasdaq, faces high compliance standards on foreign investment related issues under US law.