India Plans Tighter E-Commerce Rules Amid Complaints Over Amazon, Flipkart 

India Plans Tighter E-Commerce Rules on e-commerce websites and their affiliate entities should not be listed as sellers on their platforms; these proposed banning on flash sales could hit hard on Amazon and Walmart’s Flipkart profits.

The Ministry of Consumer Affairs’ rules, which were released in a government statement, come amid complaints by brick-and-mortar retailers that foreign e-commerce players bypass Indian laws by using complex business structures.

Though Amazon and Walmart’s Flipkart say they comply with all Indian laws. But under these new stricter laws and regulations; but from now e-commerce companies cannot hold flash sales in India.

The proposal, which is applicable to both Indian and foreign players, is open for public consultation until July 6, the Indian government statement said.

Flash sales are hugely popular during festive season in India, these flash sales create anger among offline sellers because they say it is almost impossible for them to compete with these types of deep discounts online.

Moreover, now e-commerce firms must ensure that their “related parties and associated enterprises” cannot be listed as sellers on their shopping websites and from now on related entities cannot sell their service on the same platform.

Sources including business specialists said that these changes could impact business structures used by Flipkart and Amazon as they are the fast growing Indian e-commerce marketers.

These new proposals will certainly change the way e-commerce platforms are usually structured.