To prevent unfair trade of direct selling products on e-commerce sites, the autonomous body of direct selling industry Indian Direct Selling Association (IDSA) has sought government intervention to enact regulations.
Despite court orders, e-commerce firms allegedly continue to sell direct selling products on their platforms with deep discounts. This is causing huge loss to direct selling companies, said IDSA chairperson Rini Sanyal.
According to an ET report, Sanyal sought for framing regulations with the help of newly enacted Consumer Protection Act, 2019 to prohibit e-commerce players from selling such products.
This is not the first instance where e-comm companies are alleged for selling direct selling firm products.
In July, direct selling firms like Amway, Oriflame and Modicare had moved to Delhi High Court. E-comm firms were accused of violation of the Direct Selling Guidelines, 2016 by offering unauthorised sale.
“E-comm platforms are sourcing and selling their products in an unauthorised manner at cheaper rates, resulting in financial losses to companies. Products are being tampered and sold without unique codes and QR codes on these platforms while hiding the sellers’ names and contact details,” alleged direct selling companies in its complaint.
The Delhi HC had passed an interim order to prevent e-comm platforms from advertising, displaying or selling Amway products without direct selling brand’s consent.
However, Amazon contested the ruling reasoning that barring e-comm platforms from selling specific categories might lead to a precedent for other categories.
In another such instance, Amway had dragged Flipkart to court in Oct 2018, alleging it of unauthorised selling of the US direct-selling giant’s products. Amway also had filed cases against e-comm companies including Snapdeal and online pharma seller 1mg.
