Piyush Goyal said dumping of goods at ‘very’ low prices kills domestic manufacturing.
New Delhi:
Commerce and Industry Minister Piyush Goyal today said the government is not concerned about flash sales on online platforms but is against price gouging and other fraudulent practices used by e-retailers to restrict consumer choice.
They also said that consumers buying goods on e-market place platforms are often diverted to entities preferred or promoted by the online retailer to take advantage of flash sales, which is fraudulent and against FDI norms. .
“Why should I complain if someone wants to give discount…Consumers are getting a good deal, we have no problem,” Piyush Goyal, who also holds the charge of the Consumer Affairs Ministry, said at an event here.
He said that there are two objections, one is following the practice of depreciation through dumping of goods, and the other is methods of restricting consumer choice.
“We are only trying to prevent fraud through the e-commerce policy that we are coming up with,” the minister said.
Citing China, he said dumping of goods at “very” low prices kills domestic manufacturing and forces consumers to buy goods at higher prices.
“Today consumers may be excited (about flash sales) but as a policy maker, I have to focus on the long-term good for the Indian consumer and how predatory pricing, or deceiving public choice by such means There are ways to give what we are up against,” Piyush Goyal said.
He said foreign e-commerce companies have deep pockets and it is not a problem for them to invest a few billion dollars in India and post “huge” losses.
They said that they are only into the growth of customers at any cost and cost.
He reiterated that e-commerce companies have to respect the FDI laws of the country and the market place has to act as a market place.
Marketplace players can sell products as their single brand platform, “We have no problem, it’s completely possible and allowed, but you can’t mix market place model with your single brand retail model” “
Furthermore, Piyush Goyal said that mom-and-pop stores are closing due to e-commerce giants in developed economies.
He said that the government is standing with the small retailers till the end to protect them and give them a bright future.
“I would urge everyone, whether Indian or foreign, to support this effort to protect our small retailers,” the minister said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)