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Wednesday, November 6, 2024

AICPDF calls for investigation into delivery practices of quick commerce and e-commerce firms

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The All India Consumer Products Distributors Federation (AICPDF), representing distributors of fast-moving consumer goods (FMCG), has expressed concerns regarding the delivery practices of quick commerce and e-commerce companies in India.

The͏͏ AICPDF͏͏ has͏͏ reached͏͏ out͏͏ to͏͏ the͏͏ ministries͏͏ of͏͏ road͏͏ transport͏͏ and͏͏ health,͏͏ requesting͏͏ an͏͏ investigation͏͏ into͏͏ the͏͏ use͏͏ of͏͏ private͏͏ vehicles͏͏ for͏͏ commercial͏͏ deliveries͏͏ by͏͏ these͏͏ companies,͏͏ according͏͏ to͏͏ Business͏͏ Standard.

Food͏͏ Safety͏͏ Violations:

The͏͏ Federation͏͏ highlighted͏͏ that͏͏ numerous͏͏ quick͏͏ commerce͏͏ and͏͏ e-commerce͏͏ companies͏͏ often͏͏ use͏͏ private͏͏ vehicles͏͏ for͏͏ food͏͏ deliveries,͏͏ which͏͏ violates͏͏ the͏͏ guidelines͏͏ set͏͏ by͏͏ the͏͏ Food͏͏ Safety͏͏ and͏͏ Standards͏͏ Authority͏͏ of͏͏ India͏͏ (FSSAI).

“The͏͏ standards͏͏ are͏͏ essential͏͏ for͏͏ preventing͏͏ contamination͏͏ and͏͏ ensuring͏͏ that͏͏ consumers͏͏ receive͏͏ safe,͏͏ hygienically͏͏ handled͏͏ food.͏͏ However,͏͏ the͏͏ extensive͏͏ use͏͏ of͏͏ privately͏͏ owned͏͏ two-wheelers͏͏ by͏͏ delivery͏͏ personnel͏͏ raises͏͏ concerns͏͏ about͏͏ their͏͏ ability͏͏ to͏͏ meet͏͏ the͏͏ necessary͏͏ food͏͏ safety͏͏ standards,”͏͏ the͏͏ report͏͏ quoted͏͏ the͏͏ AICPDF͏͏ in͏͏ its͏͏ letter͏͏ to͏͏ the͏͏ health͏͏ ministry.

In͏͏ its͏͏ complaint͏͏ to͏͏ the͏͏ road͏͏ transport͏͏ ministry,͏͏ the͏͏ Federation͏͏ stated͏͏ that͏͏ the͏͏ use͏͏ of͏͏ private͏͏ vehicles͏͏ poses͏͏ significant͏͏ safety͏͏ concerns.͏͏ It͏͏ noted͏͏ that͏͏ these͏͏ vehicles͏͏ may͏͏ lack͏͏ adequate͏͏ insurance͏͏ and͏͏ maintenance͏͏ to͏͏ comply͏͏ with͏͏ the͏͏ standards͏͏ necessary͏͏ for͏͏ commercial͏͏ operations.

Continue͏͏ Exploring:͏͏ Govt͏͏ to͏͏ crack͏͏ down͏͏ on͏͏ quick commerce firms͏͏ over͏͏ non-compliance͏͏ with͏͏ mandatory͏͏ disclosures

Previous͏͏ Complaints͏͏ and͏͏ Regulatory͏͏ Challenges:

However,͏͏ this͏͏ is͏͏ not͏͏ the͏͏ first͏͏ instance͏͏ of͏͏ the͏͏ AICPDF͏͏ raising͏͏ concerns͏͏ about͏͏ quick͏͏ commerce.͏͏ In͏͏ August,͏͏ it͏͏ wrote͏͏ to͏͏ the͏͏ Ministry͏͏ of͏͏ Commerce͏͏ and͏͏ Industry,͏͏ requesting͏͏ an͏͏ investigation͏͏ into͏͏ the͏͏ rapid͏͏ expansion͏͏ of͏͏ the͏͏ quick͏͏ commerce͏͏ sector.

Expressing͏͏ concerns͏͏ about͏͏ the͏͏ compliance͏͏ of͏͏ quick͏͏ commerce͏͏ companies͏͏ with͏͏ the͏͏ country’s͏͏ FDI͏͏ norms,͏͏ it͏͏ urged͏͏ Union͏͏ Minister͏͏ Piyush͏͏ Goyal͏͏ to͏͏ regulate͏͏ these͏͏ players͏͏ to͏͏ safeguard͏͏ small͏͏ retailers.

Subsequently,͏͏ the͏͏ Department͏͏ for͏͏ Promotion͏͏ of͏͏ Industry͏͏ and͏͏ Internal͏͏ Trade͏͏ (DPIIT)͏͏ forwarded͏͏ the͏͏ complaint͏͏ to͏͏ the͏͏ Competition͏͏ Commission͏͏ of͏͏ India.

While͏͏ the͏͏ e-commerce͏͏ sector͏͏ has͏͏ experienced͏͏ significant͏͏ growth͏͏ over͏͏ the͏͏ past͏͏ decade,͏͏ quick͏͏ commerce͏͏ has͏͏ gained͏͏ rapid͏͏ popularity͏͏ in͏͏ the͏͏ last͏͏ 2-3͏͏ years,͏͏ particularly͏͏ in͏͏ metropolitan͏͏ areas.͏͏ This͏͏ has͏͏ created͏͏ competition͏͏ between͏͏ e-commerce͏͏ giants͏͏ like͏͏ Amazon͏͏ and͏͏ Meesho͏͏ and͏͏ quick͏͏ commerce͏͏ players͏͏ such͏͏ as͏͏ Blinkit,͏͏ Swiggy͏͏ Instamart,͏͏ and͏͏ Zepto.

However,͏͏ both͏͏ sectors͏͏ are͏͏ facing͏͏ heightened͏͏ regulatory͏͏ scrutiny.͏͏ Quick͏͏ commerce͏͏ companies͏͏ are͏͏ being͏͏ scrutinised͏͏ for͏͏ not͏͏ adhering͏͏ to͏͏ regulations͏͏ that͏͏ require͏͏ the͏͏ display͏͏ of͏͏ expiry͏͏ and͏͏ best-before͏͏ dates,͏͏ while͏͏ e-commerce͏͏ players͏͏ are͏͏ likely͏͏ to͏͏ come͏͏ under͏͏ fire͏͏ for͏͏ violating͏͏ dark͏͏ pattern͏͏ regulations.

Continue͏͏ Exploring:͏͏ Central͏͏ Govt͏͏ to͏͏ act͏͏ against͏͏ e-commerce brands͏͏ for͏͏ violating͏͏ dark͏͏ pattern͏͏ norms

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