According to a report from The Times of India (TOI), new e-commerce rules are set to be announced soon, which may impose restrictions on e-commerce companies from selling private labels produced by companies in which they hold a “significant interest” or are related parties. This move is expected to have a considerable impact on major companies like Amazon, Flipkart, Reliance, and Tata, which heavily rely on their private label offerings to gain a foothold in the Indian market.
E-commerce Policy to Level the Playing Field for Sellers and Service Providers
The new policy will also focus on promoting fairness in algorithms to ensure the fair ranking of sellers and service providers. Additionally, the rules will seek fairness in the treatment and accessibility of logistics service providers, payment gateways, and other services. For example, companies like Amazon will no longer be allowed to use prompts to push Amazon Pay as a payment option.
New E-commerce Rules to Empower Buyers and Enhance Consumer Protection in India
Furthermore, the new regulations will require all entities to offer buyers a choice of logistics service providers. There may also be a “fallback liability” imposed on sellers, shifting the primary responsibility for orders from the marketplace to the individual seller. This means that when consignments are checked during pick-up and the seller undergoes KYC and other checks, the liability may not fall on the e-commerce platform.
Another key aspect of the rules is to protect consumers from fake and deceptive reviews and to enhance consumer grievance redressal mechanisms. These measures aim to create a more transparent and fair e-commerce environment for Indian consumers.
