16:34 GMT +310 December 2019
Listen Live
    In this Nov. 11, 2010 file photo, the Amazon.com logo adorns an Amazon.com fulfillment center in Goodyear, Ariz., one of several centers in the Phoenix metro area to open in recent years. The issue of whether Amazon.com should be required to collect tax on online sales to Arizonans isn't going away. State legislators considered but ultimately shelved proposals to force the online retailer to collect tax on its sales in Arizona. But the issue is expected to resurface publicly within the next few months when a newly appointed state task force considers making recommendations for legislative action in 2013.

    Indian Traders Up the Ante Against 'Unfair Practices' of E-Commerce Giant Amazon

    © AP Photo / Ross D Franklin
    World
    Get short URL
    0 10
    Subscribe

    New Delhi (Sputnik): Predatory pricing by e-commerce players in India is a predominant issue among traders as it hurts their business. Traders have been raising the issue with the Indian government, which is now preparing rules to deal with deep discount and fake products.

    A major Indian trade body has sought an appointment with Prime Minister Narendra Modi ahead of his meeting with global e-commerce giant Amazon’s founder and CEO Jeff Bezos.

    In a letter to Modi, the umbrella organisation, representing about 70 million traders in India, has said it wants an opportunity to apprise him of unfair trade practices being followed by Amazon in the country. 

    “The current e-commerce market of the country is highly vitiated by unhealthy and unfair practices of companies, particularly Amazon and Flipkart”, reads the letter from the Confederation of All India Traders (CAIT).

    Highlighting alleged tax evasion by these players, CAIT said that by selling goods at much lower prices, they are causing “huge GST revenue loss to the government”.

    Jeff Bezos is likely to meet Prime Minister Modi during his upcoming visit to India in January next year.

    Bezos, for his part, is looking for regulatory stability in India.

    “Whatever the regulations are, they are stable in time and that's one of the things we're hoping will now be true. We'll see”, Bezos told reporters earlier this week in Washington.

    The company, headquartered in Seattle, is embroiled in high competition with arch-rival and India-founded e-commerce firm Flipkart. However, both firms are in a legal tangle over alleged violations of FDI norms in India.

    According to the new FDI policy, which is aimed at safeguarding the interests of offline retailers and small manufacturers, e-commerce firms are restricted from indulging in predatory pricing and deep discounting.

    The Confederation of All India Traders (CAIT), which advocates for small traders and businesses in India, said these e-commerce giants have repeatedly indulged in practices that have converted their marketplaces into inventory-based models (a platform where the owner owns the products and sells it on its platform) in clear violation of the country's FDI policy.

    Related:

    Amazon Invests $630 Million to Ramp Up Operations in India - Reports
    Amazon Launching 'Project Zero' in India to Shield Online Shoppers from Counterfeit Products
    Despite Legal Troubles, Amazon India Still A Draw for CEO Jeff Bezos
    Tags:
    traders, India, E-commerce, Amazon
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik