New e-Commerce Policy Comes Into Effect: All You Need To Know

India’s new e-commerce policy came into effect From February 1, 2019. A new set of policy rules had been formed for the e-commerce companies. Department for Promotion of Industry and Internal Trade (previously DIPP) gave them a 60-day window period for aligning themselves to the government’s modified foreign direct investment (FDI) rules.

Important Highlights of the new policy:

1. Bars online retailers from selling products through vendors in which they have an equity interest.
2. Also bars them from entering into exclusive deals with brands for selling products only on their platforms.
3. All online retailers will be required to maintain a level playing field for all the vendors selling their products on the platform, and it shall not affect the sale prices of goods in any manner.
4. Disallows e-commerce players to control the inventory of the vendors. Any such ownership over the inventory will convert it into inventory based model from marketplace based model, which is not entitled to FDI.
5. The e-commerce retailer shall be deemed to own the inventory of a vendor if over 25% of the purchases of such a vendor are through it.
6. Restricts marketplaces from influencing prices in a bid to curb deep discounting. With this, special offers like cashback, extended warranties, faster deliveries to some brands will be prohibited, with the view to provide a level playing field.

Source- The Hindu

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