E-Commerce Platforms May Be Hit By Bans for Flash Sales

Over time, the e-commerce giants in India have started facing strong and strict regulations from the Government of India. With the passage of time, platforms such as Amazon and Flipkart have gained tremendous growth in the Indian e-commerce and retail market.

Initially, things were looking very much productive for the Indian economy with the accommodation of these platforms. However, as these platforms have started providing local marketplace options, the retail economy in India is taking a huge hit.

Therefore, the Government of India is now taking the matter into its own hands in order to deal with the situation. It may soon implement a change that may support the local retail sector in India.

Even the consumer affairs department has recently proposed a change, which if accepted would include a ban for Amazon and Flipkart. The proposal has been made for e-commerce rules in India. The reports suggest if the proposal is accepted, then Amazon and Flipkart would no longer be able to hold Flash Sales. The acceptance of the proposal would help local and private brands achieve more sales.

The reports suggest that the new rulings would be added to the Consumer Protection Rules for 2020. If the proposal is accepted, online retailers such as Amazon and Flipkart would simply be barred from offering flash sales.

They will not be able to hold flash sales for any services and goods through their platforms. On top of that, these firms will find it difficult in promoting private brands that would have synonymous names to the names of registered brands.

The consumer affairs department has even shared the proposal with the e-commerce platforms that it is going to affect, alongside the stakeholders. The department has requested feedback from the involved parties by July 6.

The sources have revealed that the commerce ministry, as well as the Ministry of IT and Electronics, would collaborate with the Consumer Affairs Department to discuss the matter.

In the past, rules had been framed by the government of India for the discouragement of e-commerce platforms from deep continuation. However, it has happened for the first time that the Consumer Affairs Department has proposed the banning of flash sales.

The term “flash sales” means events that are held by large e-commerce platforms to bring in huge consumer crowds to their platform. The platforms do this by offering attractive deals and cutting the prices of products significantly.

These flash sales are held mainly prior to the launch of new smartphones or other gadgets/appliances. It is done to ensure that the old products are taken out before the new products can be placed on the platform.

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