DNA MONEY EDIT: E-retailers on regulatory radar

E-commerce is not exactly a sector or an industry, but essentially an extension of the retail sector. Hence the government’s decision to regulate e-commerce alone, a sunrise segment in the country, has raised concerns. Creating rules separately for online retailers on the basis of technologies they use have exposed the inherent weakness of those regulations.

The draft National E-Commerce Policy, which wants to spur digital innovation and stimulate the digital economy, has proposed to create a single regulator, Central Consumer Protection Authority (CCPA), which will address issues ranging from consumer protection to competition to FDI in the sector. Online retailers or marketplaces may not be allowed to directly or indirectly influence the price or sale of products and services on its platform, a move that could completely restrict them from providing deep discounts.

Many suspect that the move is a knee-jerk reaction to the fears of the mom-and-pop shopkeepers who are predicting a doomsday scenario for them. Some believe that e-commerce sector may go back to the days of the infamous ‘Licence Raj’. Amazon and Walmart feel the draft policy is tilted towards domestic firms.

The policies should be aiming to expand the e-commerce sector and not strangle its growth.