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Majority of consumers don't want govt to ban heavy discounts offered by online retailers: Survey

Draft e-commerce rules ban fraudulent flash sale and misselling of goods and services


About 72 per cent of online consumers do not want the government to ban or intervene in sales offered on e-commerce platforms, according to a survey. Online purchasing has become mainstream in India with 49 per cent of consumers taking to this channel in the last 12 months, according to the survey conducted by community social media platform LocalCircles.

The survey received over 82,000 responses from consumers in 394 districts of India. Of which, 62 per cent of the participants were men, while the rest were women.

A sizable number of consumers have been using this channel increasingly because they have found it to be safe and convenient and it offers competitive prices with the ease of return, it added. "The survey also brings clarity to the issue of sales, where 72 per cent of consumers do not want the government to ban or restrict or intervene in sales on e-commerce platforms," the survey said.

The reason being is that these sales make purchasing more affordable and allow them to save more, which is of great importance during these difficult times, it noted.

The survey comes amid consumer concerns that the government's proposed amendments to the Consumer Protection (eCommerce) rules 2020 may restrict sales on online sites.

On June 21, the government had released draft e-commerce rules under which it banned the fraudulent flash sale and mis-selling of goods and services on e-commerce platforms, and also made registration of these entities mandatory with the Department for Promotion of Industry.

Among other findings, the survey said about 47 per cent of consumers expect COVID-19 uncertainty to last 6-12 months and it may have an impact on their household budget planning and therefore seek maximum value from every penny they spend.

The survey also found that about 43 per cent of consumers sought the 'country of origin' details while shopping online in the last six months.

However, consumers are split on whether 'country of origin' information must be displayed in text or image format on e-commerce platforms, it added. 


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