CAIT calls for a ‘Specialised Regulator’ for the E-commerce Sector
The Confederation of All Indian Traders (CAIT), a domestic trading organization, is calling for the establishment of a "specialised regulatory body" in the e-commerce sector to protect the interests of Small businesses and traders.
According to CAIT, different e-commerce entities are currently being regulated by different entities. Resulting in a piecemeal approach and creating confusion among various stakeholders.
The organisation has suggested the setting up of a regulator under the e-commerce policy seeing the rapid growth of the sector and its unique sectoral issue.
Currently, the e-commerce space is governed by the Foreign Direct Investment Policy, Competition Act, 2002, Consumer Protection Act, 2019 and E-commerce Rules, 2019, Information Technology Act, 2000.
The white paper contains a set of 27 recommendations for government included in the proposed e-commerce policy and nine recommendations for planned changes to consumer protection regulations for e-commerce.
According to CAIT, e-commerce is currently dominated by some large platforms and some large sellers affiliated with the platforms. This reduces the market visibility of small sellers and often puts them at a disadvantage. The e-commerce market is growing, but smaller sellers aren't enjoying the benefits at the same pace. Therefore, it is important to develop an e-commerce policy that focuses on everyone.