The Central Govt has warned Amazon.com’s local unit & Walmart’s Flipkart that sellers on their platforms are not complying with a rule requiring that a product’s country of origin be specified.
The push for strict enforcement of the rule has come amid tensions between India & China following a border skirmish which began in June, & is part of India’s efforts to cut down on Chinese imports.
The 2 e-commerce firms have been given fifteen days to explain the lapses or action will be taken against them, according to an October 16 letter addressed to the companies from the Union Ministry of Consumer Affairs.
The letter didn't specify what action may be taken, referring only to a legal act that has provisions for fines.
Representatives for Amazon & Flipkart did not immediately respond to requests seeking comment.
In addition to enforcing the country of origin rule, New Delhi has also banned 177 Chinese mobile applications since June while Chinese goods in ports have faced extra scrutiny & delays.
Amazon has often faced regulatory challenges in India. In 2019, the Govt enforced strict rules for foreign investment in e-commerce which forced the United States retail giant to rework its business structures & strained ties between New Delhi & Washington.
In Jan, the Competition Commission of India (CCI) ordered an investigation into Amazon & Flipkart over alleged violations of competition law & certain discounting practices, which Amazon is challenging, according to Court filings.
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