Traders body raises voice against ecommerce, again

Almost a year back, there was news about the traders body CAIT (Confederation of All India Traders) launching a nation-wide movement to urge the government to set guidelines to regulate the online retail market. While the news did create some stir, apart from ongoing debates about bringing a definite set of regulations in the ecommerce sector, there has been no concrete resolution from the government or associated bodies on this.

As the festive season is approaching, CAIT has once again urged the government to keep a check on ecommerce portals so that predatory pricing (supposedly applied by them) does not affect the offline retailers. The association is also demanding for a separate regulatory to ensure the retail market in India is a fair playing ground for offline retailers as well.

In a memorandum sent to the commerce and trade ministry, CAIT has alleged the following:

• Ecommerce portals are engaging in B2C activities, which are prohibited.

• Pricing is unfair as they are selling at prices lower than the offline retail market despite charging separately for logistics and commissions.

• Ecommerce is causing huge revenue losses for state governments.

The body states, “It is apprehended that the losses are being funded by either these portals or by other financial institutions with its motives. Such exercise is predatory pricing which is prohibited in the country.”

Will the government react to the allegations and continue the investigation into the matter is something we will have to wait and watch. Judging by the state of affairs so far, it will be some time before there’s any consensus on regulating ecommerce.