- The CAIT were investigating online shopping websites- Amazon and Flipkart this month, after traders have been complaining about e-commerce
- The minister of commerce and industry, Piyush Goyal, recently gave a speech at the Sweden India Business Leaders Round table and states that the websites are cooperating with the government
- The traders association raised various issues, which have led to them losing a lot of business because of e-commerce
- He also pointed out that the-commerce market should run cordially with local vendors
- Amazon and Flipkart have however, claimed innocence and denied breaking any FDI laws
The Confederation of All India Traders (CAIT) was investigating e-commerce websites like Amazon and Flipkart, and have alleged that the sites have been violating many laws and FDI guidelines of trade. They have stated that after the start of e-commerce local vendors have suffered financially, because such sites offer discounts up to 80%.
In reference to this, the Minister of commerce and industry, Piyush Goyal, met with CAIT to understand the nature of their problems. He attended the Sweden India Business leaders round table recently. and gave a speech there. He made a mention of the aforementioned problems and states that after thorough investigations, Amazon and Flipkart are cooperating with the government, and aren’t violating any guidelines. He also states that the companies are taking the scrutiny in good spirit and not hindering investigations.
Further, he also mentioned that while such businesses are welcomed openly in India, they shouldn’t play a part in hampering the local vendor’s business and work cordially alongside them. Amazon and Flipcard have claimed innocent and have denied breaking any laws or guidelines.
On October 21st, a list of the top 5 sellers for both the sites was sent to the Department for the Promotion of Industry and Internal Trade (DPIIT). Thye also sent questionairres for the companies to fill up, and get and idea of their business structure and trading practices.
The demand of the traders
The first demand they have is for e-commerce to stop using B2C business strategies through their subsidiaries, as it violates the FDI policies. This policy allows foreign companies such as Amazon to only take up the role of mediator between buyer and seller.
Their second demand, is to investigate the heavy discounts being laid down by the websites, even though they do not control their inventory.
Their third and last demand, was for the said companies to reduce the heavy discounts, especially on products of market influence.
After the traders’ effort to get to the bottom of this issue, Piyush Goyal has also started to look into the heavy discounts being laid down by food aggregators like Swiggy and Zomato.