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Amazon moves Supreme Court against direct selling companies: Report

Amazon Seller Services has moved the Supreme Court against ‘direct selling companies’ Amway, Modicare and Oriflame, challenging a July 2019 Delhi High Court interim order, which restrained e-commerce platforms from displaying, advertising and offering for sale the products of companies that are ‘direct selling entities’ without their consent, reports the Economic Times. The e-commerce company has moved the top court because it believes that restraining e-commerce platforms from selling a specific category of products might set a precedent for other product categories as well, per the report. MediaNama has reached out to Amazon for comment, and will update this when they reply. The Delhi High Court had passed the interim order on July 9 after clubbing of suits filed by direct selling entities like Amway, Modicare and Oriflame. These companies had alleged that the e-commerce platforms like Amazon, Flipkart, Healthkart and Snapdeal were sourcing and selling their products in an unauthorised manner at cheaper rates, resulting in financial losses to companies. The e-commerce platforms had replied that they are merely intermediaries under Section 79 of the IT Act, 2000 and are not liable for the products that different sellers sell on their marketplaces. They also argued that Direct Selling Guidelines were merely advisory and were not binding as law. Finally, they had contended that such guidelines restrain e-commerce platforms as well as sellers from exercising their fundamental right to freedom under the Constitution to practice any profession. Delhi HC’s July order in favour of ‘Direct Selling Entities’ The Court had…

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