Traders allege e-commerce, quick commerce firms are violating norms

New Delhi, Oct 26 The Confederation of All India Traders (CAIT) has in a letter to Union Minister of Commerce & Industry Piyush Goyal alleged that “alarming and unchecked violations” are being committed by several e-commerce and quick commerce companies in the country.

Member of Parliament and CAIT Secretary General Praveen Khandelwal has expressed deep concern in the letter that many of these companies are continuously flouting existing legal and policy frameworks with complete impunity, undermining fair trade practices and harming the interests of small and medium traders.

He has alleged that, despite the government’s clear FDI guidelines and the Consumer Protection (E-Commerce) Rules, 2020, several platforms continue to operate as inventory-based models under the guise of marketplaces, indulge in predatory pricing and deep discounting, and offer preferential treatment to select sellers—actions that are in direct violation of the law, according to a CAIT statement issued on Sunday.

Khandelwal further stated that “These companies are also violating local trade norms, ignoring licensing and delivery safety protocols, and disrupting the traditional retail ecosystem. Such practices are not only non-transparent but also threaten the livelihoods of lakhs of small traders and neighbourhood shops, who form the backbone of India’s retail economy.”

Calling for immediate government intervention, Khandelwal urged the Ministry to formulate specific regulatory guidelines for the e-commerce and quick commerce sectors under the Consumer Protection Act and FDI Policy and ensure strict enforcement of existing laws with penal provisions for violations.

He also urged the government to mandate full disclosure of algorithms, data usage practices, and seller relationships to promote transparency and to establish a dedicated monitoring authority for continuous oversight of online trade activities.

“The absence of a strong regulatory mechanism has emboldened these companies to act as if they are above the law. It is essential that the Government acts swiftly to restore accountability and protect lawful trade,” Khandelwal said.

Reiterating the traders’ commitment to Prime Minister Narendra Modi’s vision of a fair, transparent, and compliant digital economy, Khandelwal assured full support from the trading community under CAIT to the government’s efforts in ensuring a level playing field for all stakeholders in India’s retail sector, the statement added.

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