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Supreme court targets Amazon and Flipkart amid season sale

The ministry of affairs {MCA} has given a 15 days order to these ecommerce websites, and SC has asked for a clear explanation

Supreme court (SC) is on the way to making some required changes, and they have chosen an accurate time to make such decisions. As discussed, 15 days notice has been sent to the following ecommerce websites regarding the details necessary to be mentioned with the product. In July, the ministry had already notified the ecommerce rules regarding consumer protection, stating that the products’ origin country should be mentioned alongside other essential details. Festive sales are at peak on these websites due to festival season, and this is why the supreme court has targeted these ecommerce websites. The Confederation of All India Traders, also known as CAIT, has asked for an immediate investigation of these festive sales. The body’s secretary-general Praveen Khandelwal urged a complete ban on these websites until all the required conditions are met, and changes are made.

Recent tensions on the India-China border are considered as the main reason for such a notice. Make in India initiative is also being supported by SC at the moment.

Necessary details that should be mentioned

In the notice, the Supreme court has mentioned crucial changes that are the need of the hour. Few of the details that the Supreme court has asked alongside origin tag are:-

  • The names, residential addresses of people “responsible for the conduct of the business” as well as all the owners, partners, or directors, including the police station jurisdiction under which they reside
  • Details of offenses framed under the Legal Metrology (Packaged Commodities) Rules, 2011 (which require e-tailers to display Country of origin of product listings), against the company in the last three years.
  • Nature of the ownership of the firm
  • A copy of the GST registration certificate, or a partnership deed, depends on the company type.

As said, a 15-day notice has been sent, and if the details are not provided within the given period, strict legal action is expected to be taken by the Supreme court. According to the act, the first fine can be up to 25000 Rs whereas, it can also rise to 50000 rs or jail if subsequent violations are witnessed by the Supreme court.

SOMETHING CRUCIAL- While the links seem to be broken, from the URL. Here are a few of the products that were listed in the notice:-

  • On Flipkart (1)

A power bank made by Smartbuy

A laptop made by Acer

  • On Amazon (2)

A sweatshirt made by US Polo

Why are these details required?

The Consumer Affairs Ministry informed the Consumer Protection Rules, 2020. According to these rules, e-commerce websites were reported to display the Country of origin. These websites will have to give information about different parameters that are the reason behind their platforms. The Country of birth was already mentioned under the Metrology act rules, 2011, but this rule clearly stated that all these steps are related to the Indian Government’s ban on Chinese-owned apps due to confrontation between India and China at the border.

Benefits of these rules

Different demands asked by the supreme court clarified that there are numerous benefits of these details for customers. Moreover, India Government has also initiated other decisions to make the Indian audience self-dependent, and this decision by the Supreme court will be a significant boost for such people. Few benefits that Indians can get from these details are-

Boycott Chinese products- Giving specific details regarding the Country of origin will automatically help the audience look for substitutes and boycott products manufactured by Chinese Industries.

Local producers- Local producers and manufacturers will get a big boost now as the audience from respective cities will know about local manufacturers and their productions.

Economic boost- When the Country’s money will circulate between the Country, the infrastructure and economy will take a step ahead of progress.

Effective against frauds- This decision will help reduce fraud on the website as people will be more aware of the producer and location. A sense of trust will be automatically generated during the process.

Is it a digital war against China?

The most important question that arises to the moment now is that “Has India announced a digital war against China?” It seems quite evident that India has made it clear that they are ready to have a future where Chinese products don’t exist.

Banning Chinese application was the first step towards this journey, and now The supreme court has joined hands with the Indian Government. Apart from this, social media is ultimately supporting this decision taken by the Supreme court.

In the long term process, this decision will be impactful as other ecommerce websites will make considerable changes, followed by Amazon and Flipkart. These ecommerce websites share a significant part of online marketing, and any little effect on them will affect the local market of other ecommerce websites.

To Hit the nail in the head, the Supreme court has marked a significant impact, and this time even the reaction is quite strict. Hopefully, this will bring positive outcomes for the Indian audience. Moreover, once these websites make the changes, the Indian audience’s reaction will be interesting. October 30 is the deadline for these websites for the submission of their respective reports. We will keep you updated with the latest news through our articles, and more information will be shared with you as soon as we get any update on the matter.