Fair trade regulatory body the Competition Commission of India (CCI) plans to issue a “soft advisory” to e-commerce businesses operating in India in a bid to increase transparency through self-regulation.Consumer trust is one of the key challenges facing the Indian e-commerce market and the online cosmetics industry in particular has faced problems with customers receiving fake products. Beauty retail giant Nykaa recently had a large amount of stock seized after a raid found unlicensed cosmetics in the business’ e-commerce store’s warehouse and both Amazon Flipkart have received complaints about fake cosmetic goods. E-commerce platforms have argued that they are not responsible for products retailed by independent sellers but this has been debated.
The CCI had launched a study into the Indian e-commerce market back in May 2019 and intends to release its findings later this month. The government is also in the process of creating a draft e-commerce policy which is expected to address issues in the fast growing online retail market which do not currently have comprehensive regulations.