After social media, govt eyes e-commerce firms, ‘flash sales’ may be banned

The government has suggested modifications to the country’s e-commerce legislation in order to combat fraud and unfair trade practices. The government has recommended regulations that include a ban on certain sorts of flash sales and action against e-commerce platforms that do not comply.

In the draft of the new rules, there is an important proposal addressing flash sales. A provision has been included in the draft to fully prohibit flash sales on e-commerce platforms. Consumers have criticised flash sales as absolutely unworkable and as a form of “consumer looting”. Only a few companies and enterprises gain from these sales. Other businesses are unable to sell their products because of this type of business.

In addition, it has been proposed that all e-commerce enterprises in India be required to register. In addition, all businesses have been encouraged to develop a robust procedure for resolving consumer concerns. A number of small merchants in the country have complained about unethical business practices, such as internet retailers offering big discounts to get into the market. This has been brought to the attention of numerous ministries by the Confederation of All India Traders. Following such complaints, thegovernment is ready to impose tight regulations on e-commerce marketplaces such as Amazon and Flipkart in India. The proposed amendments mandate that e-commerce businesses have to give information within 72 hours after receiving an order from a government agency for the prevention, detection, investigation, and prosecution of criminal acts. In July last year, the Consumer Protection (E-Commerce) Rules, 2020 were first made public. If this is not followed, the Consumer Protection Act of 2019 can be used to take legal action. The government also intends to register e-commerce businesses with the Department of Industrial Promotion and Internal Trade (DPIIT). “Considerations/ comments/ suggestions on the proposed revisions within 15 days (by July 6, 2021) by email to js-ca@nic.in (js-ca@nic.in),” according to a public notice from the Joint Secretary, Ministry of Consumer Affairs.