The Department of Consumer Affairs is all set to bring in a new e-commerce policy in hopes of bringing parity between Indian and overseas marketplaces.
According to an ET report, the new policy will ensure that no entity will be allowed to hold equity in sellers selling on their platform or to sell own private labels on their platform.
"Rules will be the same for Amazon and an Indian marketplace," an official working closely with the project was quoted as saying by the publication. The official added that the new policy, which is in the final stage of development, will be out in public domain soon.
The official also said that the government is working on framing rules for the e-commerce sector under the Consumer Protection Act, which will address some of the issues concerning effective enforcement.
"The new policy and rules will ensure there is no direct or indirect sale of products to sellers registered on the e-commerce platform. It will also ensure catalogues and search results are displayed in a fair and transparent manner to consumers," the official added.
Currently, the Indian marketplace model of e-commerce allows 100 per cent foreign direct investment (FDI) and companies act as a platform that connects buyers with sellers. Although, no FDI is allowed for the inventory-based model, in which platforms sell directly to consumers, which disallows any third-party vendors.
Published 14 June 2023, 14:52 IST