The central government has warned Flipkart, the local entity of Amazon.com and Walmart, that sellers on their platforms are not complying with a rule that requires that a product’s country of origin be specified.
The tense enforcement of the regime has been emphasized amid tensions between India and China following the border clashes that began in June and is part of India’s efforts to cut Chinese imports.
According to an October 16 letter addressed to companies from the Union Ministry of Consumer Affairs, e-commerce firms have been given 15 days to explain the lapses or action will be taken against them.
The letter did not specify whether action could be taken, citing only a legal act that contained provisions for penalties.
Amazon and Flipkart representatives did not immediately respond to requests seeking comment.
Apart from enforcing the country of origin rule, New Delhi has also banned 177 Chinese mobile applications since June, while Chinese goods in ports have faced additional scrutiny and delays.
Amazon has often faced regulatory challenges in India. Last year, the government enforced strict rules for foreign investment in e-commerce, which forced the US retail giant to rebuild its business structure and made relations between New Delhi and Washington strained.
In January, the Competition Commission ordered investigations into Amazon and Flipkart about alleged violation of competition law and certain waiver practices, challenging Amazon, according to the court.
STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ