Government of India has proposed changes to the Consumer Protection (E-commerce) Rules, 2020 which includes a ban on “specific” flash sales. The proposed changes also includes sharing of information with government agencies related to the registration requirement of online retailers.
The Consumer Affairs Ministry said that conventional e-commerce flash sales are not ban.
“Only specific flash sales or back-to-back sales which limit customer choice, increase prices and prevents a level playing field are not allow”.
Trader associations have called the proposed rules an “important step to purify” the e-commerce business in India.
The e-commerce companies will now require to appoint a grievance officer, a chief compliance officer and a nodal contact person for 24/7 coordination with the law enforcement agencies.
Consumer Affairs Ministry is also looking for ways to ensure that all e-commerce platforms are bar from collecting data to exhibit an “unfair advantage” for selling other goods and services on their platforms.
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