CAIT says e-commerce FDI rules apply on local online players also; here’s why

The traders body has also asked Commerce and Industry Minister Suresh Prabhu to immediately release the proposed policy for the sector.

As norms for e-commerce companies having foreign direct investment (FDI) tighten, a body of traders has asked the government to apply same rules on local online players also. Such a step by the government would restrict the domestic e-players from adopting any unethical business practices, PTI reported citing Confederation of All India Traders (CAIT) statement.

The traders body has also asked Commerce and Industry Minister Suresh Prabhu to immediately release the proposed policy for the sector.

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CAIT said in its communication to the Commerce Ministry: “The FDI norms as spelled out in the policy should also be made applicable on domestic e-commerce players as well to restrict them from adopting any unethical business practices and remain at par with other e-commerce players.”

Earlier on Thursday, CAIT had demanded stringent implementation of the guidelines for sale of products by e-commerce firms announced a day earlier, while pressing for a regulator to monitor the sector and act against companies flouting norms.

“The government has addressed a majority of issues raised by us through amendments to FDI Policy announced yesterday. The cashback sale, discounts, exclusive sales, etc. cannot take place under the new norms. We welcome the government’s decision and believe that it should be implemented strictly,” CAIT Secretary General Praveen Khandelwal had then said. He had also alleged that e-commerce firms were openly flouting the Press Note Number 3 of the FDI Policy.