It goes without saying that measures designed to elicit greater cooperation from e-commerce firms, ensure greater responsiveness to issues of consumer welfare, are welcome. Similarly, there is also ambiguity over flash sales. The ministry first noted that “only specific flash sales or back to back sales which limit customer choice, increase prices and prevent a level playing field are not allowed.” While it later elaborated that it will not regulate flash sales, it is puzzling how sales limit consumer welfare. Under this, related parties of an e-commerce platform cannot be sellers on that platform. In trying to enhance consumer welfare, it should not end up decreasing it.

Source: Indian Express July 06, 2021 22:08 UTC