CAIT Demands Crackdown on E-commerce Malpractices to Protect Traders

In a communication to Union Commerce and Industry Minister Piyush Goyal, Khandelwal expressed concern that practices adopted by some companies are "severely distorting India's retail trade ecosystem."

He highlighted that activities such as "predatory pricing, deep discounting, dark patterns, inventory-led models disguised as marketplaces, preferential treatment to select sellers, and the rapid expansion of dark stores" are harming fair competition and threatening the survival of small and medium traders.

"These companies cannot be allowed to operate in a manner that undermines India's economic sovereignty and disrupts fair competition. A level playing field between offline and online trade is essential for a balanced and sustainable growth of the economy," Khandelwal said.

The CAIT Secretary General also demanded that the government expedite the implementation of a comprehensive National E-commerce Policy and put in place strict regulatory frameworks to address these issues.

He further emphasised the need for an institutional platform representing traders and proposed the creation of a National Retail Development Council.

"Policies impacting trade must be formulated with active participation of stakeholders. A National Retail Development Council will ensure that the voice of traders is heard and integrated into the policy framework," he said.

Khandelwal noted that India's "more than 9 crore traders are not merely economic partners; they are the backbone of our supply chains, vital generators of employment, and custodians of trust in the marketplace," and their interests must be protected to ensure inclusive economic growth.

Welcoming the passage of the Jan Vishwas (Amendment of Provisions) Bill, 2026, Khandelwal said the legislation reflects the government's reform-oriented approach.

He said that under the leadership of Prime Minister Narendra Modi, the government has strengthened trust-based governance and ease of doing business.

"This landmark reform reflects the Government's transformative, reform-oriented and trust-based governance approach. By further decriminalising business laws and reinforcing ease of doing business, it will significantly boost confidence among traders and entrepreneurs," Khandelwal said.

However, he stressed that while digital commerce has opened new opportunities, it has also created distortions in the marketplace, particularly due to certain foreign-funded e-commerce entities.

"A fair and transparent marketplace is the cornerstone of a strong and self-reliant economy," he added.

The Jan Vishwas (Amendment of Provisions) Bill, 2026, recently passed by both Houses of Parliament, aims to further enhance ease of doing business and ease of living in the country.

According to official information, the Bill amends 784 provisions across 79 Central Acts administered by 23 Ministries. Of these, 717 provisions have been decriminalised to promote ease of doing business, while 67 provisions have been amended to facilitate ease of living.

Overall, the legislation seeks to rationalise more than 1,000 offences by removing minor offences and reducing the compliance burden on individuals and businesses, thereby improving the regulatory environment and creating a more conducive ecosystem for economic activity.

- ANI