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‘No more flash sales’: Government to reform e-commerce rules

New Delhi: The Union Ministry of Consumer Affairs, Food and Public Distribution has decided to change the Consumer Protection (E-Commerce) Rules, 2020. The draft of the revised rules was released on Monday. The general public can submit their feedback till July 6, about the new draft which has been put up on the website of the Ministry of Consumer Affairs.

As per the new revised rules, all online retailing companies must undergo new registration requirements with the Department of Promotion for Industry and Internal Trade (DPIIT). They should also share information with the ‘government agency’. Also, all e-commerce companies must appoint a grievance officer, a chief compliance officer, and a nodal contact person for better coordination with law enforcement agencies. The government will also impose a ban on ‘flash sales’.

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‘Conventional flash sales by third-party sellers are not banned on the e-commerce platforms. But certain e-commerce entities are engaging in limiting consumer choice by indulging in ‘back to back’ or ‘flash’ sales wherein one seller on a platform does not carry any inventory or order fulfillment capability but merely places a ‘flash or back to back’ order with another seller controlled by platform. This prevents a level playing field and ultimately limits customer choice and increases prices,’ the Ministry stated.

 

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