With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
- They can sell their own goods in addition to offering their platforms as market-places.
- The degree to which they can own big sellers on their platforms is limited.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2022 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (b)
Explanation:
E-commerce Rules -2021
- The Consumer Protection (E-Commerce) Rules, 2020, notified on July 23, regulate all commercial transactions involving goods or services, sold over a digital or electronic network by retailers in India or overseas to consumers in India.
- The rules barred online marketplaces from holding inventory of their own or influencing the price of goods on their platforms.
- They also prohibited group companies or entities in which marketplaces have control of inventory to sell on their platforms, among other things.
- E-commerce companies must ensure none of their “related parties and associated enterprises” are listed as sellers on their shopping websites, and no related entity should sell goods to an online seller operating on the same platform. Hence, Statement 1 is not correct.
- Big sellers have a limit of 20% for sale on the e-commerce platform. Hence, Statement 2 is correct.
