The policy, which was in the works for several months, has been revived with inter-ministerial consultations on the issue beginning over the past few weeks. Unlike last time, when the noise of protests by e-commerce giants slowed down the government, this time the Department of Consumer Affairs is moving cautiously to ensure that there is no disruption. In fact, in the past few months it has already addressed some of the issues faced by consumers, such as resolving complaints related to product reviews and selling defective products.
In the next phase, the idea is to ensure that e-marketplaces, both domestic and foreign-owned, do not use an inventory-based model to sell their goods. An earlier press note issued by the Department for Promotion of Industry and Internal Trade (DPIIT) appeared to provide some relaxation to platforms, which is now being sought to be examined. Between DPIIT and Consumer Affairs, the government has data to suggest that some e-marketplaces were resorting to the use of inventory-based models, routing products between their own organizations where they had Had shares. These practices are demanded to be checked.
While the likes of Flipkart and Amazon are already fuming about the latest move, government sources told TOI that these platforms have to act like malls, not like stores, under the guise of being malls. Official sources said that there will be some changes for companies in the service sector in the new system.
In addition, checks will be put in place to ensure that when it comes to payments, on both the buyer and seller side, some entities are not given any preferred status. The move is expected to hurt companies like Amazon, which provide benefits to consumers who use Amazon Pay. Equal treatment to be given to all financial players on-boarded by e-commerce players.
The move comes at a time when DPIIT is also steering the rollout of the open network digital commerce (ONDC), which seeks to democratize online selling for consumers as well as small sellers.
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