Domestic retailers seek TRAI like regulator for e-commerce

Domestic retailer associations have sought a regulator like the Telecom Regulatory Authority of India, and the Securities and Exchange Board of India for the e-commerce sector and pushed for a stronger version of the Press Note 2 of 2018 which stipulates that the inventory of a vendor will be deemed to be controlled by the marketplace if more than 25% of the vendor’s purchases are from the marketplace entity.

In a meeting with the Department for Promotion of Industry and Internal Trade (DPIIT) officials on Wednesday, Confederation of All India Traders (CAIT) and the Retailers Association of India (RAI) and others also sought clearly laid out penalties for those who violate the laws.

Officials said the meeting was a consultation on the foreign direct investment (FDI) policy in e-commerce and two more meetings on the issue are planned on March 19 with industry chambers, and on March 25 with e-commerce companies.