Commerce and Industry Minister Piyush Goyal on Tuesday mentioned the federal government is just not involved about flash gross sales on on-line platforms however is in opposition to predatory pricing and different dishonest strategies utilized by e-retailers to limit shopper decisions.
He additionally mentioned that always shoppers buying items on the e-marketplace platform to avail advantages of flash gross sales are diverted to entities most popular or promoted by the web retailer, which is dishonest and in opposition to the overseas direct funding guidelines.
“Why should I complain if somebody wants to give a discount… Consumers are getting a good deal, we have no problem,” Goyal, who additionally holds a shopper ministry portfolio, mentioned right here at an occasion.
He mentioned that there are two objections, one is following the apply of predatory pricing by dumping of products, and the opposite is strategies to limit shopper decisions.
“We are only trying to stop that cheating through the e-commerce policy that we are coming out with,” the minister mentioned.
Citing China, he mentioned dumping of products at ‘very’ low costs for an extended time frame kill home manufacturing and forces shoppers to purchase items at excessive costs.
“Today consumer may get excited (about flash sales) but as a policy maker, I have to look at a long-term good for the Indian consumer and that predatory pricing, or such methods in a way to cheat public of choices is what we are against,” Goyal added.
He mentioned that overseas e-commerce gamers have deep pockets and for them investing few billions of {dollars} in India and register ‘enormous’ losses are usually not an issue.
They are solely into accretion of shoppers at any costs and value, he mentioned.
He reiterated that the nation’s FDI legal guidelines should be revered by the e-commerce gamers and market has to function as a market.
The market gamers can promote merchandise as their very own single model platform, “we have no problem, that is perfectly possible and permitted, but you can not mix the marketplace model with your single brand retail model,” he added.
Further, Goyal mentioned that in developed economies, mom-and-pop shops are shut due to e-commerce giants.
The authorities stands with small retailers until the top to guard them and provides them a shiny future, he added.
“Indian or foreign, I would urge everybody to support this effort to protect our small retailers,” the minister mentioned.
