Form panel to monitor festival sales by e-com firms: CAIT to Centre

New Delhi, Sep 2 (SocialNews.XYZ) The Confederation of All India Traders (CAIT) has urged the Centre to constitute a 'monitoring committee' to regulate and check the festival sales held by e-commerce companies.

In a communication sent to Union Commerce Minister Piyush Goyal, CAIT urged the Centre to set up a monitoring committee.

Furthermore, the confederation has also urged the minister to issue mandatory guidelines for e-commerce companies for holding festival sales.

The CAIT has alleged that in the past years, festival sales held by e-commerce companies offered predatory pricing and deep discounting via exclusive agreements that they had entered with some brands in which they held equity.

According to CAIT, this practice provides preferential treatment to some brands which is against the provisions of the FDI policy.

The 2020 festival season has already begun and will continue till November 25. This period will be immediately followed by New Year festivities.

"In order to restrain such e-commerce companies from adopting malpractices and as a matter of fair play and equal level playing field, CAIT has urged Goyal to constitute a monitoring authority to monitor such festival sales and issue proper guidelines for organising any such sale, including implementation of the 'Country of Origin' policy as declared by the government so that consumers are not deceived," CAIT said in a statement.

"In case of any violation of the guidelines... the proposed monitoring committee should be empowered to take immediate action against any such e-commerce companies which are found to be violating the FDI policy or the guidelines," it added.

Source: IANS