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Supreme Court directs Amazon and direct selling companies to seek early hearing from Delhi HC: Report

Supreme Court of India
Credit: Aditi Agrawal

The Supreme Court, on September 11, directed Amazon seller services and direct selling companies such as Amway and Modicare to approach the Delhi High Court if they wished to challenge the High Court’s July 2019 order, according to the Business Standard. It also asked them to get seek a hearing from the Delhi HC before October. In July this year, the Delhi High Court had passed an order which restrained e-commerce platforms Amazon, Flipkart, Healthkart and Snapdeal and others from displaying, advertising and selling products of ‘direct selling companies’ such as Amway, Modicare and Oriflame without their consent. Amazon had sought an interim stay on the order, and the high court said the matter would be heard in February 2020. Following that, Amazon Seller Services moved the Supreme Court against these companies in August this year due to the fear that restraining e-commerce platforms from selling a specific category of products might set a precedent for other product categories as well. Delhi HC’s July order in favour of ‘Direct Selling Entities’ The Court had held that the direct selling companies have established their case against e-commerce platforms on the following grounds that: 1. Direct Selling Guidelines have the force of law: The Court held that the Guidelines have been issued by a gazette notification, therefore “they constitute binding executive instructions”. Thus, both sellers and platforms are required to take the consent of the Direct Selling Entities before selling such products, as required by Clause 7(6) of the Guidelines. “The notification issued…

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