Draft Of E-Commerce Policy To Be Out Soon, Cap On Pricing, Stricter Norms On Discount Likely

The new policy might take stringent measures for e-commerce firms disrupting their current business models, which many allege are distorting market dynamics.

(Representative Image/ Getty)

New Delhi: The government is set to release the second draft of the proposed e-commerce policy soon focussing on domestic traders and issue stricter norms for the online retailers. Even as no decision has been taken on the deadline for the final policy, it is being said that the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Guruprasad Mohapatra is expected to review the draft policy with his team in the next few days before it goes to the commerce minister. According to a report published by Business Standard, DPIIT is planning its own set of suggestions on data localisation and non-personal data, independent of those laid out in the Personal Data Protection Bill 2019. “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,” sources close to the development told the business daily. The new policy might take strict measures for e-commerce firms disrupting their current business models, which many allege are distorting market dynamics.

It is going to focus on pricing, where the government will consider an annual review of discounts given by online retailers. The new policy is expected to put a cap on pricing and penalties for violation of rules related to zero-payment offers, flash sales, and unlimited offers, the report said. ALSO READ | Income Tax Returns Filing Deadline Extended Till July 31, Aadhaar and PAN Card Linking Also Extended It is also devising a scheme to incentivise and help small traders integrate their businesses onto digital platforms. Earlier, the government has said it has the right to tax online retail and is unlikely to change its position on the issue. Not to forget, the first version of the draft policy made public in February 2019 has evoked criticism by the e-commerce industry. One of the issues that received criticism was that of potential custom duties on electronic transmissions. Currently, there is a temporary moratorium on putting custom duties on electronic transmissions which is enforced by the World Trade Organisation (WTO). But the government then noted India reserves the right to tax online retail.