E-com Policy: Equalizing Foreign and Indian Marketplaces


16 June 2023, Mumbai

Equity Prohibited in E-commerce Platforms; The new policy aims to prevent entities from holding equity in sellers or selling private labels on e-commerce platforms, ensuring fairness.

What all you need to know

Detailed Regulations Under Consumer Protection Act

Regulations are being formulated to provide comprehensive guidelines, addressing enforcement concerns effectively.

Direct Sale Restrictions and Transparency Assurance

The policy ensures no direct or indirect sale of products to registered sellers, while catalogues and search results will be transparent to consumers.

FDI Distinctions in E-commerce Models

Foreign direct investment (FDI) is allowed in marketplace models, but not in inventory-based models involving direct sales to consumers.

Leveling the Field Amidst Concerns

To address complaints of FDI norm violations, predatory pricing, and preferential treatment, the government is closely monitoring the e-commerce landscape.

2020 Rules Barred Affiliated Entities

Introduced under the Consumer Protection Act, the rules opposed by foreign-funded and Indian companies prevented affiliated entities from selling on e-commerce platforms.

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