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Festival Sales by Amazon, Flipkart Violating FDI Norms

“Such festive sales offering deep discounts are nothing but influencing the prices directly or indirectly which is a clear violation of the policy,” it said

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Amazon, online retailer, Drones
The Amazon warehouse in San Fernando de Henares is seen during a 3-day walkout to demand better wages and working conditions, on the outskirts of Madrid, Spain. VOA

Reiterating its demand for ban on festival sales by Amazon and Flipkart, the Confederation of All India Traders (CAIT) on Tuesday said that the two e-commerce majors are flouting the norms for foreign direct investment (FDI) by carrying out festival sales.

The traders’ body urged the Commerce Minister to look into the violation of the FDI policy by these e-commerce companies and impose a ban on the declared festival sales. It also urged the government to institute an investigation into the business models of these companies.

“Holding such sales and offering deep discounts are clear violations of Press Note No.2 of FDI policy 2018. The CAIT has earlier written to Union Commerce Minister Piyush Goyal to ban the declared festival sales by these e-commerce portals,” a CAIT statement said.

“CAIT Secretary General Praveen Khandelwal strongly opposed the statements of Amazon and Flipkart that appeared in media couple of days back that they empower the sellers on their respective platforms to decide the prices and offer their choice of selection to customers at the prices they deem fit and offer best value of their products to consumers.

“The said statement of both the companies are devoid of any logic and just an eye wash to keep right the wrong practices they are conducting on their platform,” it said.

Flipkart Buys Back Shares Worth $350 mn.
New e-commerce norms to impact e-tailers: Flipkart. IANS

Khandelwal also said that these companies are indulging in blatant violation of the FDI policy of the Centre. CAIT noted that the key provisions of the FDI policy say that 100 per cent FDI is allowed in the e-commerce marketplace model and under which e-commerce companies can act only act as technical platforms.

The policy clearly says that e-commerce entities will not influence the prices directly or indirectly and shall maintain a level playing field, the statement said.

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“Since these e-commerce companies are not owners of the inventory how can they offer deep discounts on the inventory hold by the sellers registered on their platform. As per policy, it should be the seller offering discounts but in this case the discounts are offered by e-commerce companies which is again a violation of e-commerce policy.

“Such festive sales offering deep discounts are nothing but influencing the prices directly or indirectly which is a clear violation of the policy,” it said. (IANS)

Next Story

Amazon’s Music Streaming Service Hits 55 Million Subscribers Globally

Amazon Music Unlimited plan runs $9.99 a month, or $7.99 a month for Prime members who upgrade

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Amazon's
Amazon's music streaming service has grown about 50 per cent in Britain, Germany, Japan, and the US during the past year, and it is also gaining new listeners in countries such as France, Italy, Mexico and Spain. VOA

Amazon’s music streaming service ‘Amazon Music’ has reached 55 million subscribers globally closing in on Apple Music which has over 60 million users.

“Our strategy is unique and, like everything we do at Amazon, starts with our customers. We have always been focused on expanding the marketplace for music streaming by offering music listener’s unparalleled choice because we know that different listeners have different needs,” Steve Boom, VP of Amazon Music said in a statement recently.

“As we continue to lead in our investment in voice with Alexa, and in high-quality audio with Amazon Music HD, we’re excited to bring our customers and the music industry even more innovation in 2020 and beyond,” Steve added.

Amazon’s streaming music service has grown about 50 per cent in Britain, Germany, Japan, and the US during the past year, and it is also gaining new listeners in countries such as France, Italy, Mexico and Spain.

Amazon's
Amazon’s music streaming service ‘Amazon Music’ has reached 55 million subscribers globally closing in on Apple Music which has over 60 million users. Wikimedia Commons

Amazon Music Unlimited plan runs $9.99 a month, or $7.99 a month for Prime members who upgrade.

With the Single device plan, customers can subscribe to Amazon Music Unlimited at $3.99 per month to access more than 50 million songs on their Fire TV or Echo device.

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While, the family plan allows six family members to access the service for $14.99 per month, or $149 per year for Prime members. (IANS)