CAIT writes to DIPP citing FDI voilation by e-commerce marketplaces like Flipkart and Amazon

KOLKATA: The Confederation of All India Traders (CAIT) has written to the Department of Industrial Policy and Promotion (DIPP) complaining against e-commerce marketplaces Amazon, Flipkart and Snapdeal for violation of foreign direct investment (FDI) policy since these marketplaces are currently running sales.

CAIT has said the advertisements issued by the marketplaces in past few days amounts to soliciting retail customers at their portals and influencing the prices and creating an uneven playing field. The trade body has argued that the advertisements are attempting to address consumers directly which is contravention of the FDI guidelines.

CAIT has argued that since these are marketplaces, they can provide only a technology platform for the sellers who are registered with them. It has said that since ownership of inventory does not hold by these companies, they cannot offer discounts on their portals, but by giving such discounts they are openly flouting FDI policy and guidelines.