Indian govt cracks whip on 'Sale' advertisements by etailers

23 Aug '16

1 min read

The Indian government has cracked the whip on online retailers, asking them to comply strictly with ecommerce guidelines, when releasing advertisements announcing a sale or discount in newspapers. And if they are giving advertisements, then it should be clearly mentioned that these discounts are given by vendors and brand owners.

Media reports quoting an official said that online retailers were clearly told they cannot announce any kind of sale discounts at a recent meeting held in the commerce ministry, following complaints by a trade association of brick-and-mortar stores.

The commerce ministry’s action comes close on the heels of complaints received from stakeholders including the Confederation of All India Traders (CAIT).

In March, the government had allowed 100 per cent FDI through automatic route in the marketplace format of e-commerce retailing.

As per the guidelines issued by the DIPP, foreign direct investment (FDI) has not been permitted in inventory-based model of e-commerce.

The guidelines also state that such entities will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field."E-commerce guideline allows owner of inventory that is seller registered on marketplace to determine price including by giving discount," another official said.

Fibre2Fashion News Desk – India

More Apparel/Garments News - India...