Government Gets Complaints Against E-Commerce Firms

New Delhi: Consumer Affairs Minister Ram Vilas Paswan on Tuesday told the Lok Sabha that the government had received 12 complaints against e-commerce companies such as Flipkart and Newlook Retails in the past three years over alleged money laundering, fraudulent transactions and unfair trade practices, among others. Of the 12 complaints, seven were against Newlook Retails, three were against Flipkart Internet and one each against G-Link Revenue E-Com and Bhaap Online Retails, according to the data placed before the lower house of Parliament.

When asked if the government has received demands for regulating e-commerce industry, Mr Paswan said the Centre has received representation from various associations demanding regulation of e-commerce business in the country. "As regard safeguarding the interest of small retailers and domestic traders, important policy decisions taken by the government include the introduction of the public procurement policy for small and medium enterprises, restricting FDI to single brand retailing and business-to-business segment of e-commerce," he said. The e-commerce activities were essentially commercial or business oriented and therefore, come under the purview of different laws like the Shop and Establishment Act, Sales of Goods Act, Companies Act, Indian Penal Code, Income Tax Laws among others, he added. Paswan also said that e-commerce transactions are covered under the Consumer Protection Bill, 2015, which was introduced in the Lok Sabha in August this year.