The concern was raised while launching a report ‘Net Impact of E-Commerce on Employment and Consumer Welfare in India’ which shows positive impact of e-commerce on Indian economy (refer to the box).
- "e-commerce" means buying or selling of goods or services including digital products over digital or electronic network.
Adverse Impact of e-commerce
- Predatory pricing: e-commerce platforms can offer deep discount to get rid of competitors and take over the market.
- When competition is reduced consumer may lose the benefit of cost effectiveness of e-commerce platform.
- Reduced options for consumers: Fewer local shops may lead to higher travel costs or fewer shopping choices if they avoid online shopping.
- Loss of employment: Due to less competition and impediment of traditional retail sector.
- Privacy issue: Abuse of consumer data and consumer privacy.
- Breach of law: For example, currently some e-commerce platforms (like amazon) in India are engaged in direct sales to consumer sales, despite regulatory restrictions on B2C transactions.
Regulations of E-commerce in India
- Consumer Protection (E-Commerce) Rules, 2020
- Consumer Protection Act 2019
Positive impact of e-CommerceAccording to the report released recently:
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