India Plans Tighter E-commerce Rules Amid Complaints Over Amazon,

NEW DELHI, June 21 (Reuters) - India proposed banning flash sales on e-commerce web sites and mentioned on Monday their affiliate entities shouldn't be listed as sellers on their platforms, in a proposed tightening of guidelines that might hit Amazon and Walmart's Flipkart. The Ministry of Consumer Affairs' rules, which had been released in a government assertion, come amid complaints by brick-and-mortar retailers that foreign e-commerce players bypass Indian laws by using complex business structures. Amazon and Flipkart say they adjust to all Indian legal guidelines. Amazon said on Monday it was reviewing the draft guidelines and had no fast remark, while Walmart's Flipkart did not reply to a Reuters request for remark. Under the stricter proposals, e-commerce corporations should not hold flash gross sales in India. These are massively well-liked during festive season, but have confronted anger among offline sellers who say they cannot compete with the deep reductions online. E-commerce corporations should also be certain that none of their "associated parties and associated enterprises" are listed as sellers on their buying websites, and no associated entity should sell items to an online vendor operating on the same platform. The adjustments could impression enterprise buildings utilized by Flipkart and Amazon within the fast rising Indian e-commerce market, industry sources and legal professionals said. Amazon holds an indirect stake in two of the top sellers on its web site, however says it doesn't give any preferential therapy. Foreign e-commerce gamers must not make direct gross sales to shoppers, and might solely function a market for sellers. Amazon and Flipkart are additionally regulated underneath India's international funding rules for e-commerce, and it was not clear if the proposed shopper ministry rules will supersede them or not. The proposal, which is relevant to each Indian and international players, is open for public consultation until July 6, the Indian authorities assertion said. Amazon and Flipkart are separately locked in a court docket battle with federal antitrust watchdog to stall an investigation into their business practices.

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