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Monday, September 20, 2021

Indian Government Warns Amazon and Flipkart over Country of Origin Rule

The Indian government formally warned Walmart’s Flipkart and Amazon on Monday morning that sellers on their platforms are not complying with a rule that requires a product’s country of origin to be specified.

The Indian government formally warned Walmart’s Flipkart and Amazon on Monday morning that sellers on their platforms are not complying with a rule that requires a product’s country of origin to be specified.

According to a letter addressed to the companies from the Ministry of Consumer, the government gave the two e-commerce firms 15 days to explain the lapses, pointing out it will take the legal actions against both companies if time passes.

In addition to enforcing the country of origin rule, the Indian government has also banned 177 Chinese mobile applications since June while Chinese goods in ports have faced extra scrutiny and delays.

Amazon has been facing regulatory issues in India over the last few months. Last year, the government enforced strict rules for foreign investment in e-commerce which forced the American retail juggernaut to rework its business structures and strained relations between New Delhi and Washington.

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