Expressing concerns over huge discounts being offered by e-commerce firms, traders body CAIT today asked the Commerce and Industry Ministry to take steps to monitor and regulate online businesses. Also Read - Facebook will now make money from WhatsApp's in-app purchases
In a letter to Commerce and Industry Minister Nirmala Sitharaman, National General Secretary of Confederation of All India Traders (CAIT) Praveen Khandelwal has demanded for setting up of a regulatory authority for e-commerce business in India. “We invoke your kind and immediate attention to ongoing sale offers conducted by various e-commerce companies since last three days…they are offering discounts from 20 percent to 70 percent, whereas traders are forced to sell same products in offline markets at a higher prices since their purchase price is on a very higher side,” he said in his letter. Also Read - Flipkart to acquire Rs 1,500 crore worth stake in Aditya Birla Group's Fashion retail
It is a serious matter as it is badly affecting the offline market. “Such a practice if continued, may result into unavailability of products in offline market which will further result into a monopolistic situation which will be controlled and dominated by the e commerce retailers,” he added. Also Read - Flipkart shares customer behavior insights post coronavirus lockdown; here is everything we know
He said it amounts to predatory pricing and the government should take necessary steps to control this. “In the present case, the traders are in a disadvantageous position and can not compete with online retailers,” Khandelwal said.