Just a couple of days after Flipkart announced the dates ofits "The Big Billion Days" sale, the Confederation of All IndiaTraders (CAIT) has written to the government seeking a "blanket ban"on festive season sales conducted by the e-commerce giant as well as its rivalAmazon and other such platforms.
While Flipkart announced that its annual six-day sale aheadof Diwali and Dussehra would take place starting September 29, Amazon is yet toannounce the dates for its annual bumper sale.
During these periods, the e-commerce platforms offer heavydiscounts to lure customers as Indians tend to make major purchases during thefestive season.
"By offering deep discounts ranging from 10 per cent to80 per cent on their e-commerce portals, these companies are clearlyinfluencing the prices and create an uneven level playing field which is indirect contravention of the policy," the Confederation of All India Traders(CAIT) said in a letter to Commerce and Industry Minister Piyush Goyal.
CAIT said that the practice of deep discounts offered byvarious e-commerce platforms during the festive season goes against the foreigndirect investment rules.
The traders body argued that that as these e-commerceplatforms are "openly flouting FDI norms, a blanket ban on such festivalsales should be ordered and an investigation should be conducted as to howthese companies are flouting FDI norms and accordingly action should be takenagainst them."
"...much contrary to the FDI policy, the e-commerceportals are deeply engaged in B2C business and the quantum of B2B business isalmost negligible," CAIT, which represents 500,000 merchants and tradersin India, said in its letter on Friday.
"As per FDI policy, e-commerce entities providingmarketplace will not directly or indirectly influence the sale price of goodsand services and shall maintain level playing field."
Flipkart, in its announcement of annual sales dates saidthat "affordability is one of the key pillars for the Big Billion Days,with a focus on empowering consumers to fulfil all their shopping aspirationswithout compromising on their budgets."
"This year, over 50 million Indians will have access tosome form of credit, through Flipkart's various loan options, includingCardless Credit, Flipkart PayLater and No-Cost EMIs on leading bank debit andcredit cards," Flipkart said.
"There will also be 10 per cent instant discount forAxis Bank debit and credit cardholders and ICICI Bank credit card users,"it added.
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