The Narendra Modi government has set a deadline of July 6 for industry associations to send their comments on the draft rules for e-commerce players, which were announced last month.
PTI reported that industry representatives had requested the government to extend the deadline beyond July 6. PTI reported some representatives were of the view that the proposed guidelines will not help consumers, and that lack of parity between online and offline sellers will hurt interest of consumers and micro, small and medium enterprises (MSMEs).
Ban on fraudulent flash sales, mis-selling and appointment of chief compliance officer/grievance redressal officer are among key amendments proposed to the Consumer Protection (E-Commerce) Rules, 2020.
Reuters reported Amazon and Tata Group had warned government officials at a meeting on Saturday that the proposed e-commerce rules "would have a major impact on their business models".
"Amazon argued that COVID-19 had already hit small businesses and the proposed rules will have a huge impact on its sellers, arguing that some clauses were already covered by existing law," Reuters quoted two sources as saying.
Reuters reported Amazon and Tata Group are worried about a clause in the e-commerce rules that mandates e-commerce firms cannot list enterprises 'related' to them as sellers.
Amazon has indirect stakes in at least two major sellers, Cloudtail and Appario, while Tata Group is worried the rules would stop Starbucks from offering its products on Tata's marketplace website. Starbucks has a joint venture in India with Tata Group.
"The Tata executive said the rules will have wide ramifications for the conglomerate, and could restrict sales of its private brands," Reuters reported.
"A Reliance executive agreed that the proposed rules would boost consumer confidence, but added that some clauses needed clarification," Reuters reported.
