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IAMAI and IndiaTech find proposed e-commerce rules burdensome, unfair to online retailers

The two associations contended that the proposed changes would lead to over-regulation, hurt smaller entities, and impact service-providing platforms that do not deal with retail goods.   The Internet and Mobile Association of India (IAMAI) submitted that the proposed amendments to e-commerce rules are a deterrent for the growth of the industry, and IndiaTech.org said that the rules have unintended ramifications on service e-commerce platforms like ride-hailing and food delivery apps. Both groups also suggested that the proposed amendments create an unfair playing field between offline and online retailers. The government on June 21 proposed amendments that give the existing Consumer Protection (E-Commerce) Rules, 2020 more teeth. The proposed changes include new rules to address abuse of FDI regulations, the establishment of a grievance redressal mechanism, new display and labelling criteria for foreign goods, the prohibition of flash sales, restrictions on promotions, fall-back liability, among other things. Read: Summary of the proposed amendments to E-Commerce Rules, 2020 Why this matters? Both Swadeshi Jagran Manch and Confederation of All India Traders have also submitted feedback. In addition to praising the proposed rules, they submitted suggestions to further double-down on e-commerce platforms. The submissions by IAMAI and IndiaTech, on the other hand, take a different stance and ask for the rules to be diluted. The two different perspectives highlight the complexity of the issue at hand. What IAMAI submitted? "Based on feedback from its members, IAMAI has stated that the proposed amendments to the Consumer  Protection (E-Commerce) Rules, 2020 will lead to over-regulation, impede innovation and serve as…

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