Government departments: E-commerce rules to hit investor sentiment

Several government departments have expressed concerns over the proposed consumer protection norms for e-commerce companies, arguing that it will impact ease of doing business and the overall investment sentiment.

While some of the agencies have shared their feedback with the consumer affairs department, which is piloting the initiative, officials said the proposal creates multiple challenges for e-commerce players, beginning with Licence Raj.

“The moment you ask someone to register, which is what has been suggested, you ask them to queue up and start a bureaucratic process,” a senior government official told TOI. Under the proposed rules issued for discussion, each ecommerce player needs to register with the department for promotion of industry and internal trade.