Deep discounts by e- tailers likely to hit roadblock

The draft talked about adopting a common definition for the purpose of domestic policy making and negotiations. The draft also recommended steps for increasing use of Rupay cards by providing increased budget and branding.

New Delhi, July 31: Any group company of an online retailer or marketplace 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 e- tailers from giving deep discounts.

The recommendation is part of an initial draft circulated among stakeholders for discussion to frame a national e- commerce policy.

The draft has also suggested to introduce a preset timeframe for offering differential pricing or deep discounts by e- commerce players to customers.

The suggestions are part of the strategy to address anti- competitive issues in the e- commerce sector effectively.

“The restriction imposed on e- commerce marketplace, to not directly or indirectly influence the price of goods and services, would be extended to group companies of the e- commerce marketplace.

“A sunset clause, which defines the maximum duration of differential pricing strategies ( such as deep discounts) that are implemented by e- commerce platforms to attract consumers, would be introduced,” it said.

Further the draft recommended to permit 49 per cent FDI in inventorybased B2C model of e- commerce. Currently, FDI in such businesses is prohibited and it is allowed only in marketplace model.