The Confederation of All India Traders – CAIT has written to the govt seeking a ‘blanket ban’ on festive season sales conducted by e-commerce giant Flipkart, its rival Amazon and others. CAIT said the practice of deep discounts offered by various e-commerce platforms during the festive season goes against the FDI rules.
CAIT said that the practice of deep discounts offered by various e-commerce platforms during the festive season goes against the foreign direct investment rules.
The traders body argued that that as these e-commerce platforms are “openly flouting FDI norms, a blanket ban on such festival sales should be ordered and an investigation should be conducted as to how these companies are flouting FDI norms and accordingly action should be taken against them.”
“…much contrary to the FDI policy, the e-commerce portals are deeply engaged in B2C business and the quantum of B2B business is almost negligible,” CAIT, which represents 500,000 merchants and traders in India, said in its letter on Friday.
“As per FDI policy, e-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field.”