E-commerce firms will have to treat all sellers and vendors equally on their platforms and ensure transparency, according to a draft national e-commerce policy .

The draft said online retailers must refrain from adopting algorithms that result in prioritising a select few vendors on their platforms. Further, they will have to put out transparent policies on discounts, spelling out the basis of the discount rates for different products and suppliers.

The government would also put in place adequate safeguards to prevent the misuse and access of data by unauthorised persons.

“In the interest of the Indian consumer, and the local start-up ecosystem, the government will aim to ensure that there are more service providers available, and that network effects do not lead to the creation of digital monopolies misusing their dominant market position,” the draft policy said.

An inter-ministerial meeting, under the chairmanship of a top official of the department for promotion of industry and internal trade (DPIIT), was held on Saturday to deliberate on this draft.

Officials said the draft would be finalised after a few more meetings and, thereafter, the department will seek the Union cabinet’s approval.

The meeting was chaired by DPIIT secretary Guruprasad Mohapatra. Officials from the government’s policy think-tank Niti Aayog and

the ministries of finance, micro, small and medium enterprises (MSMEs), electronics and information technology (MeitY) were also present at the meeting.

To ensure that e-commerce is not used to defraud customers, registration with an authority identified by the government will be mandatory. “The government shall collect information from e-commerce platforms to aid it in making necessary decisions,” it said.