ONDC to protect independent sellers on ecommerce platforms
Reuters file photo ONDC will safeguard consumer interest and protect small businesses by giving them equal opportunity to sell their products and services.
Question: Some of the e-commerce companies are showing preference for certain sellers of products and do not give the consumer a choice of all the sellers. This restrictive practice is causing lot of heart burn amongst small producers and manufacturers. I hope the Indian Government is looking into this matter and frames relevant guidelines.
A new platform called Open Network for Digital Commerce (ONDC) is being formulated by the authorities for which rules are to be framed. These rules will apply to all companies engaged in digital commerce. This is being done to protect independent sellers on ecommerce platforms who have alleged that e-commerce companies give preferential treatment to some sellers. On certain platforms a limited number of sellers pop up more often than third party entities.
Therefore, the Government is working on new policies to bring about ‘algorithmic fairness’ for consumers who use the e-commerce platforms. These rules will make it compulsory for e-commerce firms to show search results of multiple sellers. The rules will also restrict e-commerce companies from sharing consumers’ buying behaviour. ONDC will safeguard consumer interest and protect small businesses by giving them equal opportunity to sell their products and services. This framework is being formulated by the Consumer Affairs Ministry of the Government of India.
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