“Certain e-commerce entities are engaging in limiting consumer choice by indulging in ‘back to back’ or ‘flash’ sales wherein one seller selling on [the] platform does not carry any inventory or order fulfilment capability but merely places a ‘flash or back to back’ order with another seller controlled by the platform. This prevents a level playing field and ultimately limits customer choice and increases prices,” said the Ministry of Consumer Affairs in an official statement. Furthermore, the Ministry proposes to force e-commerce platforms to appoint a Chief Compliance Officer as well as a Resident Grievance Officer. They will be responsible to ensure compliance with the Consumer Protection Act, 2019 and Rules. It is similar to the new IT Rules 2021 clause that forced social media giants such as Twitter, WhatsApp, and Facebook to appoint an India-based Chief Compliance Officer (CCO) in the country. So, what do you think about the new proposed rules for the e-commerce ecosystem in India? Do you think it will limit unfair trade practices and help small businesses? Let us know in the comments.
