Alleged unfair practices by e-commerce players: Centre to introduce steps against data misuse

While the draft policy seeks to tighten the noose around large e-commerce players, it also offers several measures to safeguard consumer interest, counter misleading sales and regulate data usage.
For representational purposes
For representational purposes

NEW DELHI: In a bid to check the alleged unfair business practices by large e-commerce players such as Amazon, Flipkart and e-Bay, the Centre on Saturday proposed that they desist from deploying algorithms to promote a select few sellers or offering deep discounts only to a small group of vendors.

According to the draft e-commerce policy, which was discussed at an inter-ministerial meeting held by the Department for Promotion of Industry and Internal Trade on Saturday, all vendors registered on their platforms must be treated equally.

While the draft policy seeks to tighten the noose around large e-commerce players, it also offers several measures to safeguard consumer interest, counter misleading sales and regulate data usage.

“Consumers have a right to be made aware of all relevant details about the goods and services offered for sale including country of origin, value addition in India, and any other such information which may be necessary for making an informed decision at the pre-purchase stage,” it said.

While the draft policy has not named any company, it said that “in the interest of the Indian consumer, and the local startup ecosystem, the government will aim to ensure that there are more service providers available, and that network effects do not lead to creation of digital monopolies misusing their dominant market position”.

According to a commerce ministry official, the policy will prevent monopoly by large e-commerce companies like Amazon.

“There have been many reports and complaints of these firms excluding sellers by denying them equal platform, refusing to provide transparency in data sharing and evading some of the foreign investment rules,” said an official.

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