Festive sales by e-tailers violation of FDI policy: CAIT

NAGPUR: Once again the online retailers have begun flouting

FDI

policy, alleged the

Confederation of All India Traders

(

CAIT

). Referring to the festive offers termed as big sales being conducted by the e-commerce companies, it said, this is the second time after the release of FDI policy 2016 when such violations are openly being committed.

As per FDI policy, it is clearly established that online retailers who have received FDI will act as market place only. They will only provide technology platform and in no way influence the prices and are under obligation to maintain level playing field, said CAIT.

However, CAIT said, by organizing big sales these online retailers are emphatically influencing the prices and creating an uneven level playing field which is contrary to the FDI policy. “They cannot offer any discount but they are offering discounts on their portals and no one is checking them. Big public advertisements have been inserted to lure the consumers. But nobody is ready to bell the cat. Such an act is creating a disadvantage for offline retailers,” said CAIT.

The CAIT has decided to submit a petition to Prime Minister and

Finance Minister

invoking their attention towards alleged gross violation of FDI policy by online retailers. There are plans to seek a legal recourse too, said CAIT

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