Traders body CAIT has asked the government to take necessary steps to prevent e-commerce portals indulging in predatory pricing during the forthcoming festive season. Also Read - E-commerce rules draft dos and dont’s: No more flash sales on phones, other goods and more
It has demanded a regulatory authority monitoring the e-commerce business in India. The body also said it is needed that the government should take necessary steps to ensure a free and fair market having an equal level playing field for all players. A memorandum to commerce and industry minister Nirmala Sitharaman by Confederation of All India Traders (CAIT) has alleged that e-commerce portals are circumventing the law and engaged in B2C activities which is prohibited for e-commerce marketplace portals. Also Read - Safer Internet Day 2021: Here's how you can ensure your online security
The CAIT has called for an investigation as to how e-commerce portals are selling goods cheaper than offline market even after charging commission and logistic charges. “It is apprehended that the losses are being funded either by these portals or by other financial institution with its motives. Such exercise is predatory pricing which is prohibited in the country,” it said in a statement. Also Read - Mobile internet services suspended on Delhi borders till February 2
It further said that e-commerce is instrumental in causing huge loss of revenue to the state governments.