NEW DELHI: The Retailers association of India has once again surfaced its objections over the functioning of e-commerce companies in India. The association said that it will soon register a complaint against the alleged violation of the online ‘market place model’ by e-commerce companies Flipkart, Amazon and Paytm.
According to them, e-commerce platforms are offering heavy discounts potentially influencing the pricing of the goods, which is a violation of the model.
Talking on the issue, Mr Kumar Rajagopalan, the Chief Executive Officer of the Indian retailers association said “As per the press note issued on March 29 by the Department of Industrial Policy and Promotion (DIPP), a marketplace-based model of e-commerce means providing of an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between the buyer and the seller”.
“But, here the e-commerce companies are totally violating the FDI rules by engaging in business-consumer trade. They are selling their own brands or those promoted by them under strategic agreement with the manufacturers. The government has allowed 100% FDI under the automatic route in business-to-business e-commerce but no FDI is permitted in business-to-consumer e-commerce”, he added.
“They cannot call themselves a market place to qualify for 100% FDI and then involve in retail business. some action has to be taken in this matter. We have decided to request the ED to investigate into these violations”, Mr Rajagopalan said.
Earlier, in a similar incident, the All India Foot Wear manufacturer and Retailers Association has lodged a complaint against the online platforms over the same issue. Subsequently, the Delhi High Court has directed the DIPP to clarity the e-commerce policy and to put in place a clear definition of the market place model.