Centre’s new e-commerce rules to hit MakeMyTrip, Zomato, Uber among others

New e-commerce rules have proposed a ban on display and promotion of misleading advertisements. [Representative image (Shutterstock]

The Centre’s newly-proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 have irked the e-commerce sector that believes that the changes would affect a range of companies including online travel company MakeMyTrip, food delivery aggregators Zomato and Swiggy, ride-hailing service providers Ola and Uber and besides home services company Urban Company among others.

The abovementioned companies are reportedly reviewing the potential impact of these amendments and some of these companies may participate in discussions through IndiaTech, CII and FICCI, a report in The Economic Times said.

"Views/comments/suggestions on the proposed amendments may be sent within 15 days (by July 6) by email to js-ca@nic.in," Anupam Mishra, Joint Secretary in the consumer affairs ministry, said in a public notice.

Among the key amendments, the government has proposed a ban on mis-selling of goods and services offered on such platforms. Those engaging in "cross-selling" will have to provide adequate disclosures to users displayed prominently.

The government also seeks to ban ‘flash sales’ on e-commerce platforms if such sales are organised by fraudulently intercepting the ordinary course of business using technological means with an intent to enable only a specific seller or group of sellers managed by such entity to sell goods or services on the platform.

“Flash sales are important for the travel sector, and it's been happening for a while where airlines offer a number of seats at low prices. Even suggestions like offering local alternatives, how will it work? Do we flash an Indian airline every time someone tries to book a flight on a foreign airline, which might be cheaper than Indian alternative?” a person aware of the discussions told the publication.

Reportedly, restaurant associations had complained of food delivery aggregators which may have led to the government including food delivery within the purview of the rules.

It has also proposed a ban on display and promotion of misleading advertisements. E-commerce entities offering imported goods/services will also have to mention the name and details of the importers and the "country of origin."

[Inputs from PTI]