Paytm Mall to punish sellers using Snapdeal’s 3rd-party panel

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Concerns about third-party panel, Unicommerce stealing business data, are troubling Paytm Mall again. The inventory management software company is owned by Paytm’s rival Snapdeal, which is likely to join an even bigger competitor, which is Flipkart.

Paytm Mall’s legal update to sellers

The etailer said in through email it has observed that sellers are still using the Uniware/Unicommerce panel to maintain their Paytm Mall accounts. According to the etailer this constitutes disclosure of confidential Paytm Mall related data to a third party.

The email further stated,

This is to inform you that the Delhi High Court has passed an interim order asking Snapdeal-owned Unicommerce not to access Paytm Mall’s sellers’ business data, stop using Paytm Mall’s logo, and take off ads on video streaming site YouTube which carries Paytm Mall’s logo…

…We would like to inform you that Paytm Mall does not support Unicommerce in any way. Using its services or products for managing your business with us, is strictly prohibited. Any partner/seller found using Unicommerce will be liable for strict legal action.

You the sellers being our partners/merchants for One97 Communications Ltd (Paytm Mall) know and understand that you have entered into a Marketplace Agreement with us which interalia prohibits certain acts on your part under its various clauses.

Paytm Vs. Unicommerce in 2016

In the past, Paytm accused Snapdeal’s Unicommerce of stealing confidential business data by accessing its seller panel through sellers.

Delhi HC passed an interim order requesting Snapdeal-owned Unicommerce to:

  • Stop using Paytm’s logo
  • Remove ads on videos on Youtube which display the Paytm logo

In 2016, Unicommerce’s status quo, of accessing seller data as a representative of the seller and making this data available to them, was not ordered to be changed. The (Delhi High Court) court saw no reason to change it.

The order read, “…the defendant (Unicommerce) shall not access the information derived on behalf of the defendant’s customers i.e. the sellers who are registered with the plaintiff (Paytm) and with the defendant, and shall not use the said data for itself. The same shall be made available exclusively to the sellers, when they access the same on the defendant’s site.”

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