The government proposes to outlaw 'flash sales' in e-commerce reforms.

The government suggested various changes to the e-commerce rules on Monday to prevent corporations from engaging in what it considers "unfair trade practices." The government suggested legislation that would prohibit "flash sales" on any e-commerce platform.

According to a statement released by the food and consumer affairs ministry, "the phrase generally relates to "flash sales," which may be organised using fraudulent means by modifying software to enable benefit to a certain vendor or a group of sellers."

The government defined a "flash sale" as "a sale organised by an e-commerce entity at significantly reduced prices, high discounts, or any other such promotions or attractive offers for a predetermined period of time on selected goods and services or otherwise with the intent to attract a large number of consumers," according to the statement.

Traditional flash sales by third-party vendors are not prohibited on e-commerce platforms, according to the government's statement.

Another planned change is the creation of Chief Compliance Officers, who will serve as nodal contact persons for law enforcement agencies 24 hours a day, 7 days a week to ensure compliance with the Consumer Protection Act of 2019.

Provisions of fall-back liability for every marketplace e-commerce company have been included to ensure that customers are not harmed when a seller fails to provide goods or services due to negligent activity.

The suggested revisions were backed by the All India Online Vendors Association. “We hope the government adopts the same as soon as possible, strictly in full compliance, following thorough stakeholder talks on additions or deletions,” it continued.

The proposed revisions can be found on the Department of Consumer Affairs' website. Please send your comments to js-ca@nic.in by July 6, 2021.