The proposed new ecommerce policy may not require online business firms to mandatorily register on Open Network Digital Commerce (ONDC).
According to a report from Mint, the Department for Promotion of Industry and Internal Trade (DPIIT) might not enforce a requirement for online portals to reveal their ‘buyer and seller’ database to the ministry’s service facilitator, ONDC.
Nevertheless, the forthcoming policy is expected to suggest voluntary registration, indicating a departure from prior considerations. This change in position comes after conclusive consultations with stakeholders in early August. Initially, the government had been contemplating transforming ONDC into a comprehensive one-stop service-providing network.
The upcoming ecommerce policy may tackle concerns pertaining to unfair trade practices, encompassing issues like predatory pricing and flash sales.
In the proposed legislation, the government has already relaxed the obligatory criteria for establishing an independent regulator specifically designed to supervise online retail platforms.
Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT), proposed that, in addition to ONDC registration, all online players should be required to register with DPIIT. Furthermore, he recommended the establishment of a distinct regulatory body to effectively combat online fraud.
Lately, stakeholders in the industry advocated for the government to allow foreign direct investment (FDI) in inventory-based ecommerce platforms engaged in the export of goods.
From the existing policy standpoint, foreign direct investment (FDI) is only allowed in ecommerce platforms utilizing a marketplace model, while it is prohibited for inventory-based ecommerce entities.
The formulation of the e-commerce policy has been an ongoing initiative since 2018. The government’s approach involves amalgamating diverse rules and regulations governing ecommerce platforms into a comprehensive and unified regulatory framework. This holistic strategy seeks to incorporate essential elements, including the Consumer Protection Act, the Foreign Direct Investment policy issued by the DPIIT, the Competition Act, and the forthcoming Digital India Act, into a cohesive set of regulations for the ecommerce sector.
