The Centre on Wednesday barred e-commerce firms like Flipkart and Amazon from selling products of companies in which they are stakeholders. The Ministry of Commerce and Industry also said that no e-commerce firm can oblige any seller to sell a particular product on its platform only.
The revised Foreign Direct Investment policy for e-commerce said that entities in the sector will not directly or indirectly influence the sale price of goods or services, and shall provide a level playing field for all vendors on the platform. Any services they offer to vendors on the platform should be at arm’s length only and non-discriminatory, the government press release added.
The e-commerce entities should also provide “fair and non-discriminatory” cashback to customers in case such a need arises, the press release said.
The ministry said that the new guidelines will come into force from February 1, 2019. The e-commerce companies will have to submit a certificate along with the report of a statutory auditor to the Reserve Bank of India confirming that these guidelines have been complied with, by September 30 each year.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!