Some states concerned about proposed e-commerce rules fear negative impact on employment, MSMEs
New Delhi, June 27 (PTI) Some states, mainly those led by non-BJP parties, are concerned about the new set of e-commerce rules proposed by the Union Ministry of Consumer Affairs to control abusive sales and fraudulent discounts, as they fear. there could be a negative impact on jobs and market access for MSMEs created by various digital platforms in recent years. These state governments plan to suggest strong safeguards in the proposed rules to ensure that any changes to the 2020 consumer protection (e-commerce) rules do not hamper their economic growth engines and revenues, officials said. of these states. However, it should be borne in mind that their suggestions do not run counter to the proposed rules improving the overall framework for consumer protection, they said. Refusing to be identified, these officials said it was a sensitive issue that must be treated with care, as protecting consumer interests is as important as safeguarding jobs, MSMEs and thousands of people. ‘independent individuals, including artisans, weavers and those in agriculture and allied sectors. sectors that have benefited enormously from the growth of the e-commerce sector. Officials said formal suggestions on the draft rules would be made to the Center, which invited suggestions until July 6, would be made after deliberating on all issues and after consulting all stakeholders. A large number of foreign and domestic investors and other business entities, who have either invested in or do business with various e-commerce platforms, are also said to be wary of some proposed rules, notably on ‘fallback liability’. ‘, flash sales or big discounts and data sharing. Their fears include increased responsibility of online retailers for the goods and services sold on their platforms, which could also impact the ability of e-commerce players to raise funds in the future and could incentivize existing investors and potentials to put in place additional measures to protect their returns. . Major e-commerce players such as Amazon and Walmart / Flipkart, as well as some industry organizations, are also expected to submit their views on these proposals shortly. A senior official from a large state not led by the BJP said the proposed rules may disrupt the state’s business ecosystem, especially with regard to MSMEs and small entrepreneurs, and will also limit consumer choices. , rather than safeguarding their interests. He pointed out that MSMEs contribute almost two-thirds of the annual revenue generated on just two main platforms – Amazon and Flipkart – and that this amounts to thousands of crore rupees, while there is a large chain involved including companies, self-employed people. -employees, warehouses, farmers, etc. and these platforms have created thousands of jobs in recent years. Among various measures, the draft amendments propose to ban fraudulent flash sales and abusive sales of goods and services on e-commerce platforms. The prohibition on misleading users by manipulating search results and the appointment of a compliance officer and resident grievance officer are some of the other proposed changes. Electronic commerce entities are also required to provide information no later than 72 hours after receiving an order from a government agency for the prevention, detection and investigation and prosecution of infringements under any law, in accordance with the proposed changes. The 2020 consumer protection (e-commerce) rules were first notified in July last year. Their violations result in criminal prosecution under the Consumer Protection Act 2019. The government said that following the notification of the e-commerce rules, it received several complaints from aggrieved consumers, traders and associations “complaining about the widespread fraud and unfair business practices observed in the commerce ecosystem. electronic.” Among the main amendments, the government has proposed a ban on the abusive sale of goods and services offered on these platforms. Those who engage in “cross-selling” will need to provide adequate information to users displayed in a prominent position. The government is also seeking to ban “flash sales” on e-commerce platforms “if such sales are organized by fraudulently intercepting the ordinary course of business using technological means with the aim of allowing only a specified seller or a group of sellers managed by such entity to sell goods or services on the platform. “However, the ministry clarified that” conventional e-commerce flash sales are not prohibited. Only specific flash sales or back-to-back sales that limit customer choice, raise prices, and prevent a level playing field are not allowed. “” … Some e-commerce entities are committed to limiting consumer choice by engaging in ‘back to back’ or ‘flash’ sales in which a seller selling on a platform does not have inventory or order fulfillment capability but simply places a ” flash order or back to back ” with another seller controlled by the platform, “he said. Such sales will not be allowed as it prevents a level playing field and ultimately limits the choice of customers and increases prices, the ministry added. The proposed amendment defines “flash sale” as that organized by an e-commerce entity at significantly reduced prices, high discounts or any other such promotional offer. for a period of predetermined time. The government has also proposed a ‘back-up liability’ for each e-commerce entity in the marketplace to ensure that consumers are not harmed in the event that a seller fails to deliver goods or services due to negligent conduct. from this seller. PTI BJ MR MR
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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