Some states, mostly those ruled by non-BJP parties, are apprehensive about the new set of e-commerce rules proposed by the Union consumer affairs ministry to check mis-selling and fraudulent discounts as they fear there could be a negative impact on jobs and market access for MSMEs.
These state governments plan to suggest strong safeguard measures in the proposed rules to ensure that any changes in the Consumer Protection (E-Commerce) Rules, 2020 do not hamper their economic growth engines and revenue collections, officials from those states said.
However, it would be kept in mind that their suggestions do not come in the way of the proposed rules enhancing the overall consumer protection framework, they asserted.
These officials said it is a sensitive matter that needs to be tackled carefully as protecting consumers’ interest is as important as safeguarding jobs, MSMEs and lakhs of self-employed individuals, including artisans, weavers and those in the agriculture and allied sectors who have been benefiting immensely from the e-commerce platforms.
The officials said formal suggestions on the draft rules would be made to the Centre, which has invited suggestions till July 6.
A senior official of a big non-BJP-ruled state said there is a view that the proposed rules can disturb the state’s business ecosystem, especially with regard to MSMEs and small entrepreneurs and will also limit the choices for consumers, rather than safeguarding their interest.
He pointed out that MSMEs contribute almost two-thirds of the annual revenues generated on just two major platforms — Amazon and Flipkart —- while there is a big chain involved comprising businesses, self-employed individuals, warehouses, farmers etc and these platforms have created lakhs of jobs in the recent years.
A large number of foreign and domestic investors and other business entities, who have either invested in various e-commerce platforms or are doing business with them, are also said to be wary of the proposed rules which were released last week.
