Traders to oppose unethical business practices of e-commerce giants, big revelation in white paper
New Delhi| In view of the Competition Commission of India (CCI) report, the Confederation of All India Traders (CAIT) released a white paper in collaboration with the All India Mobile Retailers Association (EMRA). In this, it has been decided by traders across the country to oppose the unethical business practices of e-commerce giants. Due to wrong methods, domestic retailers are not getting a level playing field.
Praveen Khandelwan, MP from Chandni Chowk and National General Secretary of Confederation of All India Traders, said, this white paper mentions the serious impacts being exerted by e-commerce companies, Amazon and Flipkart on India’s retail ecosystem. This White Paper elaborates on the violations of rules that are being disregarded by these companies, particularly under the Foreign Direct Investment (FDI) policy and other e-commerce related regulatory frameworks. National General Secretary of CAT, while addressing the mobile business leaders, said that the unethical business practices of e-commerce giants should be strongly opposed.
These companies are bent on distorting Prime Minister Narendra Modi’s vision for the development of domestic trade. Now is the time for the business community to strongly counter these companies’ plan to grab India’s retail trade. Quoting Union Commerce Minister Piyush Goyal and Union Finance Minister Nirmala Sitharaman, Khandelwal said, a few days ago they had warned these companies to give up their vested interests and work to create a level playing field. Now the report of the Competition Commission of India ‘CCI’ has confirmed all the allegations, which CAT and other organizations made almost 4 years ago.
CCI should take immediate action against these companies under the law. The white paper’s findings show that Amazon and Flipkart have consistently bypassed FDI norms that were created to ensure a level playing field for domestic retailers. Through preferential treatment to select sellers, deep discount products, and specialty product launches, these companies have distorted the retail market. This has had a serious impact on small and medium retailers across the country.
CAT and Emera have demanded immediate and strict action against Amazon and Flipkart. Because, they have clearly violated FDI policy and rules. The retail community urges the government to intervene immediately. Took corrective steps to protect the interests of Indian retailers and maintain the principles of fair competition. In their white paper, CAT and AMRA propose some recommendations for policy and regulatory actions.
These recommendations include immediate release of e-commerce rules under the Consumer Protection Act. Immediately suspending the business operations of Amazon, Flipkart and their affiliated companies, reinstating them only if they comply with rules and laws, establishing a strong policy framework that can close regulatory loopholes. In view of all this, fair competition and consumer protection should be ensured. There should be a fast track system to resolve consumer complaints, which should be operated by an Ombudsman. With its help fraudulent activities can be stopped. Timely intervention will be ensured.
To exempt GST input credit for e-commerce transactions, thereby reducing tax evasion and preventing revenue loss. Cashback is anti-competitive. It encourages grey market operations. A ban on this would restore market fairness. These sales, which often act as a platform for manipulation and collusion, should be suspended, until the issues identified are resolved.
A luxury tax should be imposed on high-end products sold through e-commerce platforms. This can lead to parity between online and offline retailers. This is an important moment for India’s retail sector. Any delay in resolving these issues can cause irreparable damage to the country’s economy and retail ecosystem.
