The Department for Promotion of Industry and Internal Trade (DPIIT), has asked Snapdeal and Paytm Mall to share information on their selling practices, reported Inc42.
As per the sources, the move is part of a wider probe into deep discounting practices of ecommerce players.
The department has ordered both the e-commerce platforms for details about top sellers on their platforms and the schemes they offer to vendors.
“We have written to large companies that have foreign direct investment-…we want to see what practices they are following,” a government official said.
This is part of government’s move to settle traders’ body’s grievances regarding deep discounting and predatory pricing by ecommerce platforms.
While, spokesperson, Paytm Mall, said, “The questions are in the nature of the queries as indicated by you. We, however, do not confirm if the list is inclusive of all questions, nor can we confirm that all your stated questions are in the questionnaire from the department.”
Paytm Mall, is a platform provided by Paytm for user to shop, it works just like any other e-commerce website or application.
Whereas, Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010. Snapdeal provides an online marketplace offering various products across different categories like electronics, mobiles, books, fashion, and computers, among others.
The company Paytm Mall also claims that it does not own and operate warehouses, rather it partners with the sellers and encourages them to use the local courier services for delivery, thereby bringing down the delivery time and costs.