E-commerce websites like Flipkart and Amazon occasionally host flash sales for smartphones as well as other products. However, this might come to an end. The Indian government is planning to introduce strict norms for these e-commerece platforms. With the new norms, the websites will not be permitted to hold any sort of flash sales.
This comes after the Department of Consumer Affairs sought suggestions on the proposed amendments to Consumer Protection. As Flipkart and Amazon hold countless sales in a year, it is hampering the small businesses.
The government of India has received quite a lot of complaints from consumers, traders and associations against unfair trade practices being observed in the e-commerce ecosystem. As a result, the Ministry of Consumer Affairs in its proposal has said that no e-commerce platform should be allowed to hold flash sales in India.
“Certain e-commerce entities are engaging in limiting consumer choice by indulging in ‘back to back’ or ‘flash’ sales wherein one seller selling on platform does not carry any inventory or order fulfilment capability but merely places a ‘flash or back to back’ order with another seller controlled by the platform. This prevents a level playing field and ultimately limits customer choice and increases prices,” the ministry said in a statement.