The recent issuance of the draft by the centre, which stated a ban on predatory flash sales on e-commerce platforms, is very startling news for every E-commerce platform. To this proposal, the central ministry has sought the approval of the public till July 6 to revise it into the consumer protection (E-Commerce) Act 2020. E-Commerce sites like Amazon and Flipkart will require adhering to the newly revised regulation of the ministry of consumer affairs.
Flash sales refer to a high-discounted sale where we experience low pricing of every entity for a specific time at an E-Commerce Platform. Regarding the flash sales, the government has told that it is receiving ample complaints regarding the deceptive activities carried on the e-commerce platforms and how the common people are being tricked by the sellers, which needed to be checked as soon as possible. Also, the government has mandated for these platforms to set up a grievance addressing procedure by appointing a chief compliance officer, nodal contact officer, and resident grievance officer likewise in the matter of new IT rules for social media platforms. The new plan also includes the registration of every E-Commerce site under the Department of Promotion for Industry and Internal Trade (DPIIT). This move will enable the government to possess every data of these sites to enable cybersecurity.
According to Government “Government agencies which, lawfully authorised for investigation or protective or cyber security activities, for verification of identities, for the prevention, detention and investigation, or prosecution of offences, under any law for the time being in force, or for cyber security incidents".
The proposed rule also ensures that this move will prioritize the use of the indigenous product to Vocalise "Aatma Nirbhar Bharat ". The entities should also provide adequate information about the importer of a product and also include the filter options for its buyers to get an alternative option of sellers of a particular product. It has also informed that no E-Commerce entity will further indulge in displaying misleading advertisements. If found guilty, it will take strict action against them.
According to local traders and sellers, “The new draft is a guiding stone to purify the e-commerce landscape of the country, which has been greatly vitiated by various E-commerce global companies".