The Central government has given a notice of 15 days to Amazon and Flipkart. This is to explain and make changes on its sites with regards to mandatory procedures.
Government has warned Amazon.com local unit and Walmart’s Flipkart to check over their sellers. They are not complying with the rule that states it is compulsory to show country of origin.
Country of origin is very important, especially in today’s time as the tensions between China and India are so pronounced. Being mindful of the origin could help the country cut down on the consumption of Chinese products.
With a warning, the companies are given 15 days to explain the loss of action against the sellers and their silence on their non compliance.
The letter is addressed to the companies and are from the Union Ministry Of Consumer Affairs.
The letter did not mention the consequences should there be no compliance form the companies. It only mentioned the fines an act would levy.
What is the Law?
The Legal Metrology (Packaged Commodities) Rules provides that an e-commerce entity has to ensure that the mandatory declarations (including the country of origin), except the month and year in which the commodity is manufactured or packed, “shall be displayed on the digital and electronic network used for e-commerce transactions”.
In addition to enforcing the country of origin rule, New Delhi has also banned 177 Chinese mobile applications since June and Chinese goods in ports have faced extra scrutiny and delays.
Amazon has often faced regulatory challenges in India. Last year, the government enforced strict rules for foreign investment in e-commerce which forced the US retail giant to rework its business structures and strained ties between New Delhi and Washington.
The Confederation of All India Traders (CAIT), which has been at the forefront of the campaign to mandate disclosure of ‘Country of Origin’, applauded the government’s move.
Amazon and Flipkart are India’s top e-commerce websites. They have a large pull of customers towards them. Lately both have been in news in regards to a major sale going on both the sites.
The Great Indian Sale of Amazon and The Big Billion days of Flipkart are very popular amongst its consumers.
As of now there has been no comment from the representative of Amazon or Flipkart