E-commerce policy: Cap on pricing and discounts, stricter data norms likely: Report

The second draft of the proposed e-commerce policy may include tighter norms on data and predatory pricing. The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Guruprasad Mohapatra will hold a meeting in the next few days to review the policy and submit it to Commerce Minister Piyush Goyal, Business Standard reported.

So far a deadline has not been set for the final policy, the report added.

Moneycontrol could not independently verify the story.

The DPIIT might make include its own recommendation on data localisation and non-personal data, independent of the rules in the Personal Data Protection Bill 2019, Business Standard reported.

"Data localisation remains a big concern and despite there being broad government norms on the issue, it would have to be tailor fit for the e-commerce sector," an official said.

The government might also consider conducting an annual review of discounts offered by online retailers, the report added.

The Centre is working on a scheme to incentivise and help small traders integrate their businesses onto digital platforms, the report said.

The new policy will place a cap on pricing and penalties for violation of rules related to zero-payment offers, flash sales and unlimited offers, the report said.

The government has previously said it has the right to tax online retail and is unlikely to change its position on the issue, the report said.

The first version of the draft policy made public in February 2019 was heavily criticised by the e-commerce industry.