India’s new e-commerce rules banning flash sales seen as cause for concern by US lobby group

A top lobby group that is part of the US Chamber of Commerce believes India’s proposed new e-commerce rules are cause for concern and will lead to a tighter operating environment for companies, as reviewed by Reuters According to an email sent. India this week prompted online retailers such as Amazon and Flipkart to outline plans to limit “flash sales”, rein in a private label push and mandate a system to address complaints. The Washington-headquartered US-India Business Council (USIBC), of which Amazon and Walmart are members, described the rules in an internal email, saying some of the provisions were in line with New Delhi’s stance on other large digital companies.

“India’s draft plan includes a number of related policies, including significant limits on the platform’s ability to organize sales and handle complaints,” USIBC said in an email to its members. The USIBC has in the past urged India not to tighten a separate set of foreign-governed rules. Investments in companies such as Amazon and Flipkart, an issue that has often soured trade relations between India and the United States. USIBC did not immediately respond to a request for comment. The new rules – open for consultation until July 6 – are expected to have an impact across the board in an online retail market estimated to be worth $200 billion (about Rs 14.8 lakh crore) by 2026.