The government has asked online retailers to strictly comply with the e-commerce guidelines following complaints by offline players on the advertisements being given by them in newspapers announcing sale.
This was instructed to the online retailers during a recent meeting held in the Commerce and Industry Ministry.
“In the meeting, it was made clear to the online companies that they can not announce any kind of sale discounts and if they are giving advertisements, then it should clearly mention that those discounts are extended by their vendors and brand owners only,” an official said.
The official said the ministry has received lot of complaints by stakeholders including traders body Confederation of All India Traders (CAIT).
Demanding immediate action, CAIT had filed a complaint with DIPP alleging that major e-tailers are blatantly violating FDI norms.
It has stated that during the past few days companies have given big advertisements in media announcing sale on their online platform which is a violation of FDI guidelines on e- commerce.
The meeting was attended by Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek, the consumer affairs secretary and some big online retailers.
In March, the government had allowed 100 per cent FDI through automatic route in the marketplace format of e-commerce retailing.
As per the guidelines issued by the DIPP, foreign direct investment (FDI) has not been permitted in inventory-based model of e-commerce.
The guidelines also states that such entities will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field.
“E-commerce guideline allows owner of inventory that is seller registered on marketplace to determine price including by giving discount,” another official said.