Commerce and Industry, Textiles Minister Piyush Goyal has said that the Government is not concerned about flash sales on online platforms but is against predatory pricing and other cheating methods used by e-retailers to restrict consumer choices.
Addressing an event, the minister said that often consumers purchasing goods on the e-marketplace platform to avail themselves of flash sales are diverted to entities preferred or promoted by the online retailer, which is cheating and against the foreign direct investment (FDI) rules.
The minister said, “Why should I complain if somebody wants to give a discount? Consumers are getting a good deal; we have no problem. We are only trying to stop that cheating through the e-commerce policy that we are coming out with.”
He said that there are two objections: one is following the practise of predatory pricing by dumping goods and the other is using methods to restrict consumer choices.
The minister said that today’s consumer may get excited (about flash sales), but as a policymaker, we have to look at the long-term good for the Indian consumer, and predatory pricing or such methods in a way to cheat the public of choices is what we are against.
He said that foreign e-commerce players have deep pockets, and for them, investing a few billions of dollars in India and registering “huge” loss.
They are only into the acquisition of customers at any price and cost.
The minister said in developed economies, mom-and-pop stores are closing because of e-commerce giants. The Government stands with small retailers till the end to protect them and give them a bright future.
He insisted that the country’s FDI laws have to be respected by the e-commerce players, and the marketplace has to operate as a marketplace.
“We have no problem; that is perfectly possible and permitted, but you cannot mix the marketplace model with your single-brand retail model,” he added.
