Possibility of banning flash sale in the name of huge discounts

New Delhi, Dt

The central government is preparing to ban fraudulent sales with consumers in the name of false and hefty discounts on e-commerce platforms. The government is preparing to ban Flash Sale from cheating consumers in the name of huge discounts on e-commerce platforms. However, in this context, the government clarified that there will be no ban on discounts and sales on big e-commerce companies like Amazon and Flipkart. With this, the government wants to amend the Consumer Protection (E-Commerce) Rules, 2020. The government has sought suggestions from the public in this direction within 15 days.

The government has been considering measures for some time to curb the rising incidence of fraud with ordinary consumers on internet platforms. So the government is preparing to completely ban consumers from being misled by manipulating search results on the internet. Appointment of Chief Compliance Officer and Grievance Redressal Officer in False Flash Sale, Misleading Sales and E-Commerce Companies is an important proposal of Consumer Protection (E-Commerce) Rules, 2020 The government has invited suggestions from the people on the issue by July 6.

The proposed rule also proposes mandatory registration of e-commerce companies and platforms with the Department for the Promotion of Industry and Internal Trade (DPIIT).

Nidhi Khare, Additional Secretary, Ministry of Consumer Affairs, clarified that the ministry would not "regulate" trade on e-commerce platforms. E-commerce companies need not worry about the proposed change in the rules. We will only take action on such false flash cell if we get a complaint or if the Central Consumer Protection Authority takes suo-moto on an issue.

The Consumer Protection (E-Commerce) Rules, 2020 were first notified in July last year. Violation of this is punishable under the Consumer Protection Act, 2016. The Joint Secretary, Ministry of Consumer Affairs said that ideas, suggestions and comments on the proposed research can be sent to the email ID JSS-CA at NIC.in by July 6, 2021. However, the ministry said that the traditional concessions given by e-commerce companies on special occasions and related sales plans would not be restricted in any way. Flash cells can only be banned specifically to stop and mislead customers on their platform.

The government said it has received numerous complaints from aggrieved consumers, traders and associations. It says e-commerce companies are being massively deceived by consumers and misled into buying unnecessary items. According to the ministry, the proposed research is aimed at bringing transparency to the e-commerce platform and strengthening the regulatory system.