Govt may release draft on changes in e-comm rules this week

The Centre is planning to incorporate changes to the consumer protection rules on e-commerce after consultation with industry and e-commerce players. The prominent amendments that may be included are redrafting of related party sales and clarity on flash sales.

The Centre will issue a notification in this regard as soon as later this week. The amendments are aimed at tightening the regulatory regime of the e-commerce industry, reported Business Standard.

The decision is being taken after several virtual meetings and consultations with e-commerce companies like Flipkart and Amazon, and associations including the Confederation of All India Traders (CAIT), Confederation of Indian Industries, Retail Association of India (RAI), Internet and Mobile Association of India (IMAI), and PHD Chamber of Commerce and Industry.

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The daily cited sources as saying the consumer affairs ministry and the Centre's investment promotion arm, Invest India, will reveal the nuances of all the suggestions in the final draft, which could be released later this week.

If the draft is incorporated in the e-commerce rules, it's going to impact e-commerce companies that run flash sales, where goods are sold at a relatively cheaper price. It could also have a provision for the appointment of a grievance officer for them.

As per the Centre, the changes in the rules will protect the interests of the consumers and make companies more accountable. However, some sections of the industry are also worried that rules like the inability of related parties to carry out transactions in the marketplace could create problems for them. They are also against incorporating companies that help in logistics under the definition of e-commerce players.

Also read: Will new e-commerce rules do more harm than good?