Traders body CAIT today asked the government to take necessary steps to prevent e-commerce portals indulging into predatory pricing during the forthcoming festive season.
It has demanded a regulatory authority monitoring the e-commerce business in India. It is needed that the government should take necessary steps to ensure a free and fair market having an equal level playing field for all players.
A memorandum to Commerce and Industry Minister Nirmala Sitharaman by Confederation of All India Traders (CAIT) has alleged that e-commerce portals are circumventing the law and engaged in B2C activities which is prohibited for e-commerce marketplace portals.
The CAIT has called for an investigation as to how e-commerce portals are selling goods cheaper than offline market even after charging commission and logistic charges.
"It is apprehended that the losses are being funded either by these portals or by other financial institution with its motives. Such exercise is predatory pricing which is prohibited in the country," it said in a statement.
It further said that e-commerce is instrumental in causing huge loss of revenue to the state governments.
