Govt Working On New Rules To Stop Ecommerce Seller Biases

It will be compulsory for the ecommerce platforms to show search results of several sellers instead of just focussing on preferred sellers

The rules will be a part of the framework for Open Network for Digital Commerce

The new set of rules will be applicable for all companies engaged in digital commerce

The ecommerce platforms in India may have to ensure soon that there is no bias or partiality in their algorithms that favours particular sellers, according to proposed rules that the Indian government is working on.

It will be compulsory for the ecommerce platforms to show search results of several sellers instead of just focussing on preferred sellers, if the proposed rules come into force. Moreover, the rules will be a part of the framework for Open Network for Digital Commerce (ONDC), according to a report by The Economic Times.

ONDC has been at the centre of discussion since the Indian government announced the project in July 2021. In a recently concluded event, Union Minister Piyush Goyal spoke on how ONDC is working towards democratising ecommerce . “The ONDC team wants to ensure that “millions of small mom-and-pop stores all over the country and small retailers do not get extinguished like we have seen in the West,” Goyal said.

Confederation of All India Traders (CAIT) secretary general Praveen Khandelwal is of the view that the “most talked about e-commerce platforms”, especially the players with foreign funding, are trying to create dominance not only in the ecommerce sector but also in the retail trade of India.

“The number of sellers that they give on their platforms are mostly fudging figures and almost 80-90% of their sales are rooted through their own preferential companies, either they have an economic interest or they have an equity interest in. Therefore they are camouflaging the data which they root from […]

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