Lok Sabha Question No. 1076 (UNSTARRED), answered on 2025-02-10
Subject: Quick Commerce Platforms
Ministry: CORPORATE AFFAIRS
Asked by: Thiru Dayanidhi Maran

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 1076

ANSWERED ON MONDAY, FEBRUARY 10, 2025/ MAGHA 21, 1946 (SAKA)

Quick Commerce Platforms

## QUESTION

1076. Shri Thiru Dayanidhi Maran.

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the steps taken by the Government to address concerns raised by the Consumer Affairs  Ministry  regarding  aggressive  discounting  and  the  proliferation  of  'dark stores' by quick commerce platforms;
- (b) whether the Government has any plans to collaborate with the Consumer Affairs Ministry to create a unified framework to address the challenges posed by quick commerce platforms to smaller retailers;
- (c)  the  criteria  for  quick  commerce  players  to  be  regulated  under  the  digital competition law and the criteria adopted to determine their regulatory significance and the manner in which their potential future impact being monitored;
- (d)  whether  the  Government has any plans to introduce guidelines or policies to ensure  fair  competition  &  prevent  monopolistic  practices  by  quick  commerce platforms as they continue to grow and if so, the details thereof; and
- (e) whether the Government has conducted or commissioned any studies to assess the long-term effects of quick commerce platforms on market competition, small retailers and consumer behaviour?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

(SHRI HARSH MALHOTRA)

(a)&(b)  Department  of  Consumer  Affairs  has  notified  the  Consumer  Protection  (Ecommerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019 to safeguard consumers from unfair trade practices in e-commerce. These rules, inter-alia, outline  the  responsibilities  of  e-commerce  entities  and  specify  the  liabilities  of

marketplace  and  inventory  e-commerce  entities,  including  provisions  for  customer grievance redressal.

## In terms of the provisions of these rules, no e-commerce entity shall

- (i) manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price having regard to the prevailing market conditions, the essential nature of the good or service, any extraordinary circumstances under which the good or service is offered, and any other relevant consideration in determining whether the price charged is justified.
- (ii) discriminate between the consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.

These rules also provide that no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

In order to strengthen consumer protection, the Central Consumer Protection Authority (CCPA) issued the 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' on 30th November 2023. These guidelines address and regulate 13 specific dark patterns identified in the e-commerce sector, aiming to prevent deceptive practices that mislead consumers.

Bureau  of  Indian  Standards  (BIS)  introduced  the  framework  on  'Online  Consumer Reviews -Principles and Requirements for their Collection, Moderation, and Publication' on 23rd November 2022. This framework safeguards consumer interests by addressing  fake  and  deceptive  reviews  in  e-commerce.  While  the  standards  are voluntary,  they  apply  to  all  online  platforms  that  publish  consumer  reviews  and  are guided  by  principles  such  as  integrity,  accuracy,  privacy,  security,  transparency, accessibility, and responsiveness.

The Ministry of Corporate Affairs (MCA) regulates company entities under Companies Act, 2013. Competition Commission of India takes action to prevent practices having adverse  effect  on  competition,  to  promote  and  sustain  competition  in  markets,  to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets under the various provisions of the Competition Act, 2002.

Currently, there is no plan to collaborate with the Consumer Affairs Ministry to create a unified framework.

(c)&(d) There is no separate Digital Competition Law at present. However, appropriate action is taken as per the existing provision of the Competition Act, 2002 on receipt of any  complaint  regarding  anti-competitive  practices  or  abuse  of  dominance  by  any company including e-commerce companies.

(e) No such study has been conducted or commissioned by the Ministry of Corporate Affairs.