Govt not to seek disclosure of flash sales from etailers; to act on consumer complaints

Discount sales that benefit maximum to consumers will continue

Centre on Tuesday rushed to calm nerves on changes to e-commerce rules, saying the government will not seek disclosure of flash sales but want to curb fraudulent sales intended to benefit shell companies instead of consumers.

Addressing a press conference here, Nidhi Khare, Additional Secretary in the Ministry of Consumer Affairs said the amendments to the e-commerce rules were required in the wake of complaints to the National Consumer Helpline related to transactions on e-commerce platforms.

“Initially, marketplaces started on a premise that they were only platforms, where buyers and sellers come and do transactions. Now e-commerce is evolving and they have their own private labels,” she said elaborating on the reasons for bringing in amendments to the rules.

On the proposed ban on flash sales, Khare said the amendments were necessary as there have been complaints of flash sales organised by shell companies without any inventory, which was against the interest of the consumers.

Read more: Centre proposes ban on flash sales on e-commerce platforms

She said even western countries were deliberating on how to curb such practices wherein the entire inventory on offer is purchased by shell companies.

She said registration of e-commerce platforms would also help curb such practices and help rein in fly-by-night operators.

Khare also made it clear that the consumer affairs ministry “will not regulate” the trade on e-commerce platforms.

“E-commerce players need not be anxious about the proposed changes in the rules,” she said.

“This is a step taken in time. These markets are evolving, consumer preferences are evolving. We have to keep pace with the changes so that consumers are not duped,” she said.

“Such competition actually helps the business overall to bring goods at better prices to consumers. We are not against that,” she said, adding that the discount sales on e-commerce platforms would continue.

The Consumer Protection (E-Commerce) Rules were first notified in July last year. Their violations attract penal action under the Consumer Protection Act, 2019.