Traders’ body CAIT calls for dedicated regulatory body for ecommerce
The letter comes as both Amazon and Flipkart host millions of buyers on their platforms for festive sales, namely Big Billion Days and Great Indian Festival, respectively.
In a letter sent to Finance Minister Nirmala Sitharaman, the Confederation of Indian Traders (CAIT) has called for a dedicated regulatory body to monitor ecommerce platforms.
The letter, addressed by B C Bhartia, National President of CAIT, highlighted the need to safeguard smaller sellers' rights to free and fair trade. It also called for restraining erring parties from continuing their illegal practices such as those of preferred sellers. It further asked for a time frame to conclude hearings on disputes.
The letter also claimed that Amazon and Flipkart indulged in exclusive dealings with mobile manufacturers and ensured mobile phones were only available on exclusive channels.
“The growth of Flipkart and Amazon in other segments of trade is also phenomenal due to their illegal practice of selling at prices lower than the overall costs,” stated Bhartia, asking for increased scrutiny from the Competition Commission of India.
CAIT claims that even with illegal practices, both the marketplaces have incurred huge losses which are funded through foreign direct investment (FDI) brought in the guise of developing marketplace infrastructure.
“In other words, the FDI was used for cash burning and selling at cheap with a view to shut down the competitors and to exploit the market once the competitors vanish from the market,” stated the letter.
Edited by Kanishk Singh