E-commerce companies like Amazon, Flipkart seek time to comply with labeling rule
Highlights
- Present at the meeting were executives from Reliance Retail, Jio Platforms, and Tata Cliq.
- Also present were e-commerce companies like Snapdeal, Udaan, Swiggy, Zomato, BigBasket, and Grofers.
- Paytm Mall said it supports the government’s decision to promote Make in India and the manufacturing sector in the country.
India’s top internet commerce companies, including Flipkart and Amazon, have looked for a time from the Center to ensure that all items sold on their foundation show the ‘nation of cause’ label, multiple people aware of the conversations told ET.
At a virtual meeting with the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday, online retailers asked for a window of 4-5 months to comply with the requirement aimed at controlling Chinese imports in the midst of heightened tension between the two Asian monsters, a government official said.
Additionally present at the meeting were executives from Reliance Retail, Jio Platforms, and Tata Cliq alongside eCommerce companies, for example, Snapdeal, Udaan, Swiggy, Zomato, BigBasket, and Grofers, sources said.
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“In an offline setting, a consumer can get an item, see where it was made, and make an informed decision. Comparative details ought to be displayed on eCommerce websites,” a senior government official told.
Companies have been asked to provide feedback within a fortnight about the modalities after examining it with sellers on their foundation, people conscious of the conversations said.
The government is putting together its move with respect to the Legal Metrology (Packaged Commodities) Rules, 2011. The clause will likely be included in the eCommerce strategy that the commerce and industry service is drafting, sources said. “No organization is being arm-twisted and the scheme is a piece of the nation’s Atmanirbhar strategy,” they added.
A representative for Snapdeal declined to comment on the meeting however said the organization “already provides a (discretionary) field for sellers to include details relating to the nation of the root. Paytm Mall said it bolsters the government’s decision to promote Make in India and the assembling sector in the nation. “We have already initiated conversations with our sellers, merchant partners on the next steps to drive this initiative further,” the organization said.
Amazon and Flipkart didn’t reply to ET’s queries.
“The business made it clear, and the DPIIT agreed, that on account of online marketplaces we were not liable for item postings,” said a senior executive who was a piece of the call.
“Our risk is in building the technology for sellers to mention the nation of the beginning of an item, which we all said would not be very difficult for us to do,” the person added.
However, the business raised some questions around the need for a more detailed definition of ‘nation of starting point’ for items and the legality of delisting items that didn’t comply with the rule.
“Companies have said this is a doable thing yet they need time to implement it especially for older postings,” an authority said.
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