Rules will hurt sentiment globally: Indo-us chamber

The proposed amendments to the Consumer Protection (E-commerce) Rules, 2020 — envisioned to protect consumer interests — may further hit sentiment pertaining to the e-commerce sector, the Indo-american Chamber of Commerce (IACC) has told the Ministry of Consumer Affairs.

IACC, the apex bilateral chamber for Indo-us businesses, told the government that the proposed amendments will increase compliance liabilities, which risk severely impairing growth of the sector.

“We also draw your attention to the fact that such a measure will affect investor sentiment globally, especially with respect to ‘Ease of Doing Business’ in the country,” said Lalit Bhasin, national vice-president of the IACC, in a letter to Anupam Mishra, joint secretary (Department of Consumer Affairs), Ministry of Consumer Affairs, Food and Public Distribution Government of India.

The letter, dated July 2, has been seen by Business Standard.

According to industry sources, Amazon has, so far, committed $6.5 billion to India. Walmart had bought Flipkart for $16 billion in 2018.

The IACC letter said that over the last few years, the ecommerce sector has vastly contributed to India’s growth story by providing choice, convenience, and value to consumers, and has also generated massive employment, besides having a multiplier effect on allied ecosystems (ranging from logistics to payments), it added.

“The past few months have seen rising e-commerce adoption owing to the pandemic, and, over time, the sector has created millions of jobs in ancillary industries and given retail a whole new dimension,” said the IACC letter.

It said there are multiple provisions within the proposed amendments, and there is a concern that they may impinge on the business operations of e-commerce companies. Some provisions may also be read as pertaining to trade activities rather than overall consumer interest, which are covered as stated in other regulatory formats.