Fair trade regulator CCI is looking into alleged anti-competitive conduct by online retail firms like Flipkart India, Amazon, Jasper Infotech and Xerion Retail even as the government is considering introducing norms to safeguard consumers’ interest in the e-commerce space.Besides, the government has asked its investigation agency for corporate frauds SFIO to initiate prosecution against Goldquest International and its group company Questnet Enterprises as well as AbcIndya Networks, while probe reports against Unipay2U group and Speakasia Online are examined.The response was part of written reply by Minister of Corporate Affairs Arun Jaitley to the Lok Sabha on a query related to status of government action against various companies in the online space. ”The matter regarding alleged anti-competitive conduct of online retailed Flipkart India, Jasper Infotech, Xerion Retails, Amazon Seller Services, Vector e-commerce, etc is under consideration of the Competition Commission of India (CCI),” Jaitley said. ”Government in the Department of Consumer Affairs is considering inclusion of necessary safeguards for protection of rights of consumers of technology based marketing e-commerce, telemarketing etc, as part of the proposed amendment in the Consumer Protection Act, 1986,” he added.
Jaitley also informed the House that the government has also asked the Serious Fraud Investigation Office (SFIO) “to file prosecution under provisions of Companies Act, 1956 and the Indian Penal Code against Goldquest International (including its group company Questnet Enterprises) and Abcindya Networks”. Further, Jaitley said that investigation reports in respect of Unipay2U group of companies and Speakasia Online “are under examination”. E-commerce firms like Flipkart have come under the scanner of the Competition Commission following massive discount sale by them.