Government should not over-regulate ecommerce industry: Assocham

The recent Flipkart fiasco and the following apology letter from them created quite a stir across the country with both sellers and consumers. While one would think it would mean everyone’s support in ascertaining ecommerce rules and regulations, Assocham (Associated Chambers of Commerce and Industry) says that the government should not impose too many unnecessary regulations on the ecommerce businesses based on this incident.

“The Flipkart incident resulting in inconvenience to enthusiastic customers on the Diwali offer should be taken at the most as one-off case and let it not be used as a ploy or an ammunition to subject the fledgling and hugely promising e-commerce space to regulation over and above the rules of the game which are applicable to normal business,” Assocham said in a statement.

Since the promoters of Flipkart had already expressed regret and apologized for the whole mess, the matter should be put to rest, adding that, “If at all any regulatory issue is involved, let it be dealt within the existing laws concerning interests of the consumers.”

The chamber also mentioned about how the middle class consumers are also warming up to online shopping now and imposing restrictions in the industry would lead to curbing the growth and expansion of so many promoters of ecommerce businesses. By the current trends and popularity with sellers and consumers, the sector has the potential to rise to $15-18 billion in the coming three years.

However, the traditional retail market players are said to be in danger owing to the deep discounts and offers given by online portals, a significant reason due to which the government could look into the matter of regulating the ecommerce industry more strictly.

“We have received many inputs. Lot of concern has been expressed. We will look into it,” Commerce and Industry Minister Nirmala Sitharaman told reporters on Flipkart’s ‘Big Billion Day’ sale.