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Online in for FDI Violation

The Confederation of All India Traders (CAIT) urged the government to take action action against e-commerce firms like Amazon and Flipkart, alleging they have flouted FDI norms for such players by undertaking retail trading activities.

Its been said that the complaint has been submitted because the advertisements issued by them being Amazon, Flipkart and Snapdeal in the past days amounts to soliciting retail customers at their portals and influencing the prices and creating an uneven level playing field.

Under FDI policy these companies can not undertake retail trading activities but these e-commerce portals being habitual offenders of (the) government policies are circumventing the law and engaged in B2C (business-to- commerce) activities which is prohibited for e-commerce markplace place portals.

In its complaint, the traders, body demanded that necessary immediate action should be taken against the firms for violation of FDI policy.
According to CAIT, as per the FDI policy guidelines, ecommerce portals receiving foreign direct investment can conduct business activities for B2B (business-to- business) business and will not be allowed to undertake B2C (business- to-consumer) business activities.

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