Direct selling body to move government to curb e-commerce play
The IDSA chairperson Rini Sanyal said the e-commerce firms were selling their products not just in an unauthorised manner but also at deep discounts, causing losses to the direct selling companies.
The IDSA chairperson Rini Sanyal told ET they would insist on regulations prohibiting e-commerce players from selling products of direct selling companies to protect the interests of the Indian direct selling industry, which saw 16% compound annual growth rate (CAGR) from 2015-16.
Sanyal said the e-commerce firms were selling their products not just in an unauthorised manner but also at deep discounts, causing losses to the direct selling companies. Direct selling companies like Amway, Oriflame and Modicare, which are into selling their products directly to consumers through a network of sellers, had moved the Delhi Court against e-commerce players in July.
The court on July 9 passed an interim stay order restraining the e-commerce players like Amazon, Flipkart, Healthkart and Snapdeal from displaying, advertising and offering sale of products of direct selling entities without their consent. In a report, IDSA said the key challenge being faced by majority of the direct selling companies was the illegal and unauthorised selling of their products through e-commerce platforms.