The Ministry of Consumer Affairs on Monday suggested amendments to the Consumer Protection (E-commerce) Rules, 2020, which may tighten the functioning of large online marketplaces in the country.
The new suggested rules impose a blanket ban on ‘flash sale’ of goods and services conducted by e-commerce companies in the country. The MCA defines flash sale as a sale event organised by e-commerce entities at significantly reduced prices and high discounts for a predetermined period.
E-commerce firms are also expected to establish adequate redressal mechanisms and appoint a Chief Compliance Officer, the MCA proposed as a part of the new rules.
These rules would impact a large swathe of players, especially companies like Flipkart and Amazon.
The Department of Consumer Affairs has sought feedback from the public on the proposed changes by July 6.