Traders’ body CAIT calls for the establishment of a dedicated e-commerce regulatory body

In a letter sent to Finance Minister Nirmala Sitharaman, the Confederation of Indian Traders (CAIT) has called for the establishment of a special regulatory body to monitor e-commerce platforms.

The letter, addressed to BC Bhartia, national president of CAIT, stressed the need to protect the rights of smaller sellers to trade freely and fairly. He also called for erring sites to be stopped from continuing their illegal practices, such as those of preferred sellers. It also requested a time frame for the completion of dispute hearings.

The letter also alleged that Amazon and Flipkart entered into exclusive deals with mobile phone manufacturers and ensured that mobile phones were available only on exclusive channels.

“The growth of Flipkart and Amazon in other retail segments is also phenomenal due to their illegal practice of selling at prices lower than total costs,” Bhartia said, asking for increased scrutiny by the Competition Commission of India.

CAIT claims that even with illegal practices, both markets have suffered huge losses, which are financed by foreign direct investment (FDI) under the guise of developing the markets’ infrastructure.

“In other words, FDI has been used to burn cash and sell cheaply in order to shut down competitors and exploit the market when competitors go out of business,” the letter said.