NITI Aayog caught in e-com cross hairs

Source: Business Standard

What is the news?

Confederation of All India Traders (CAIT) has criticized NITI Aayog on its opposition to some of the e-commerce policy rules.

  • In June, the consumer affairs ministry had proposed a range of amendments under the Consumer Protection (E-Commerce) Rules, 2020, to ‘’protect the interests of consumers and encourage fair competition’’ in the market and had sought comments from relevant stakeholders.
What did NITI Aayog say?

NITI Aayog had raised concerns regarding the fallback liability clause that puts the onus on marketplace platforms such as Amazon and Flipkart, instead of sellers.

Must Read: E-commerce companies call out lack of clarity in draft rules
What is the fallback liability clause?

The draft e-commerce rules define “fall back liability” as

the liability of a marketplace e-commerce entity where a seller registered with the entity fails to deliver the goods or services exactly in the way described on the platform, as a result of negligent conduct, omission or a seller’s fault.

Companies too have expressed their concerns regarding this clause.

Must Read: Issues with draft e-commerce rules
Why is CAIT criticizing NITI Aayog?

As per CAIT, the doubts cast by NITI Aayog on draft e-commerce rules under Consumer Protection Act are contrary to the objectives for which it has been constituted, and it seems to be doing so under pressure of e-commerce giants.

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