The central government on Wednesday tightened the norms upon e-commerce and barred the exclusive offers category of shopping sites like Amazon and Flipkart,who sell the products of companies in which they have a stake by exclusive deals.
According to a statement by the Commerce and Industry Ministry,”An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,”
The changes will come into effect from Feb.1 this year. Several complaints lodged by domestic traders on heavy discounts being offered by e-commerce players to consumers lead the central government to revise its Foreign Direct Investment,FDI policy on e-retailing.
The ministry also observed that,”Cashback provided by the group companies of marketplace entity to buyers shall be fair and non-discriminatory,”and ensuring equal importance to all the vendors along with filing a certificate and a report of statutory auditor to the RBI, ensuring the guidelines by September 30th of every year for the preceding fiscal are strictly followed.