e-Commerce Platforms may not be able to do Flash Sales

The Central Government of India has suggested modifications to the Consumer Protection (E-Commerce) Rules, 2020, in order to avoid flash sales and the misselling of many erroneous goods through e-commerce platforms.

The government plans to amend the rules to prevent corporations like Amazon and Flipkart from engaging in suspected flash sales and miss-selling.

On Monday, the Central Government recommended revisions to the Consumer Protection (E-Commerce) Rules, 2020, in order to avoid flash sales and the misselling of many erroneous goods through e-commerce platforms. The administration has also polled the general population on the subject. Industry groups and the general public have until July 6 to submit suggestions and comments on the new e-commerce rules.

What is the definition of a flash sale?

Flash sales are defined as significant price reductions on predetermined dates, large discounts, or other promotional incentives. Miss-selling occurs when an e-commerce company offers a product by providing false information about it.

It contains proposals such as deceiving customers by altering search results, as well as the establishment of a Chief Compliance Officer and a Resident Grievance Officer.

The proposal includes rules such as prioritising the sale of local items and requiring e-retailers to register with the Department of Industry and Internal Trade (DPIIT). The goal of the central government’s approach is to hold firms accountable to their customers while also tightening the regulatory structure.