Online shopping has been widely accepted in the past decade. With the ease payment gateways along with offers and discounts offered by the online sites have attracted more and more consumers.
However attractive these e-commerce platforms have been to the consumers, it seems like not all parties are getting the desired results.
The Indian Direct Selling Association (IDSA), which represents Amway, Oriflame, and Modicare among other companies, has said that steep discounts offered by e-commerce platforms adversely affect actual sales by direct sellers making a significant dent to their businesses.
The Delhi High Court has recently ruled that e-commerce platforms including Amazon, Flipkart and Snapdeal cannot sell products owned by direct selling companies online without authorization of the companies.
Amway said that the products sold through unauthorized channels create an unnecessary risk for consumers.
Late last year, Amway had taken Flipkart to the Delhi High Court, accusing the company of selling their products on the e-commerce platform without authorization. Following Amway’s lead, Oriflame and Modicare had moved the court against the unauthorized sale of their products online.
IDSA chairman Vivek Katoch said, “The HC’s judgment is expected to provide a level-playing field to direct sellers. It also clarifies that neither e-commerce platforms nor sellers can claim rights on products”
The companies have contended that some products have been sold with tampered bar codes and seals, which compromises quality and puts a brand reputation at risk.
The court further stated that the e-commerce platforms, which have penetrated all forms of business, have the obligation to maintain the sanctity of contracts and should not encourage or induce a breach.