E-commerce policy set to mandate disclosing product origin

The inclusion of provisions under Press Note 3 issued by DPIIT may also worry e-commerce companies since Chinese investors have become a rather large source of investment.
For representational purposes
For representational purposes

BENGALURU : The government is likely to roll out the country’s first e-commerce policy soon which will include the provisions under Press Note 3 issued by the Department of Promotion of Industry and Internal Trade (DPIIT) as well as mandates for sellers to notify the origin of products, top sources privy to the development told TNIE.

The revised draft of the e-commerce policy may even entail stricter regulations for e-commerce giants like Amazon and Flipkart, especially after sellers and trader bodies have been accusing them of preferential treatment and predatory pricing leading to market domination.

“DPIIT will put out a draft soon to seek suggestions and get the necessary approvals from the commerce ministry as well as PMO. Most likely, the policy will be rolled out before August 15,” sources revealed. Industry watchers said that the government is likely to introduce revised FDI regulations mandating government approval for any investment from a neighbouring country.

Besides, the DPIIT has also been meeting representatives from e-commerce companies over the past week seeking their suggestions on notifying “origin of products” on online marketplaces so that the buyers can make an informed choice.

This had come after the Delhi High Court issued notices to e-commerce firms to make mandatory disclosure on every products’ country of origin.

The inclusion of provisions under Press Note 3 issued by DPIIT may also worry e-commerce companies since Chinese investors have become a rather large source of investment.

“Although China is not dominating the e-commerce market in india, the stricter FDI norms may yet worry Amazon and Walmart-backed Flipkart as the government is focusing on helping native entrepreneurs develop their own apps and marketplaces for a self sufficient India,” a market analyst opined. 

The Confederation of All India Traders had already written to Commerce and Industry minister Piyush Goyal seeking penalties on e-commerce companies if they are found to be involved in unfair market practices.

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