Sellers are back in the driver’s seat, setting prices

What’s the story

After a 40-day suspension, e-commerce giant Flipkart has restored the ability for sellers to change product prices.

This decision is in response to the report authored Money control drawing attention to the difficulties faced by sellers.

An anonymous seller said, “I advertised on Flipkart that my top-selling product was unavailable because the purchase price had gone up but the sale price could not be changed.”

Flipkart accused of violating FDI policy

The controversy began when Flipkart changed its commission rate sheet in May, preventing many small sellers from adjusting their asking prices on the Walmart-owned platform.

Sellers accused the company of violating India’s foreign direct investment (FDI) policy, which prohibits e-commerce sites from influencing prices.

They also argued that the policy was discriminatory and anti-competitive because it did not apply to larger retailers.

The company denies any violation of the law.

In response to the allegations, a Flipkart spokesperson said, “We comply with all FDI regulations and have no control over pricing. As a homegrown e-commerce marketplace, Flipkart has an unwavering commitment to adapting and evolving as per the requirements of our sellers.”

“The all-new simplified pricing policy is designed to optimize growth paths for sellers while increasing billing transparency.”

Legal expert weighs in on Flipkart pricing controversy

Salman Waris, partner at TechLegis, a law firm specializing in technology services, commented on the situation.

He said, “If smaller sellers are unable to price change vis-à-vis the bigger players and their prices are being imposed, it is certainly an abuse of dominant position by Flipkart.”

Waris further added that such practice would violate the FDI Circular 2020, which ensures a level playing field for all sellers.