The Confederation of All India Traders (CAIT) has set its sights on quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto, accusing them of violating laws and harming small businesses. “These platforms are aggressively pushing small retailers out of the market,” said Praveen Khandelwal, CAIT secretary general.
CAIT claims Q-commerce use FDI funds to steep discounts
According to INC42, CAIT’s recent white paper details alleged infractions, including exclusionary deals, FDI-backed predatory pricing, opaque operations, and indirect inventory control. The traders’ body claims these platforms maintain exclusive agreements with preferred sellers, limiting market reach for smaller retailers. They also allegedly use FDI funds to fund steep discounts, squeezing traditional stores out.
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Further, the organisation criticises the platforms for obscuring critical seller information, depriving consumers of transparency regarding product origins and pricing structures. Moreover, they allegedly sidestep FEMA rules by indirectly managing inventory via selected sellers.
CCPA sends notices to platforms
This development comes amid rising scrutiny of quick commerce platforms. The Central Consumer Protection Authority (CCPA) recently sent notices to some companies for violating metrology norms.
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CAIT has been vocal about alleged unfair trade practices by ecommerce platforms, criticising the Competition Commission of India (CCI) for inadequate action. They’ve called for a dedicated ecommerce regulator and accused Amazon and Flipkart of violating antitrust directives. Reports indicate these companies may face penalties of up to 10% of their global annual turnover for breaching competition laws.
