New Delhi, November 7: The Enforcement Directorate (ED) on Thursday conducted raids on multiple sellers across the country — linked to e-commerce platforms including Amazon and Flipkart — over alleged money laundering activities. According to reports, the ED was conducting a pan-India search against subsidiaries and sellers of leading e-commerce players. Nearly 24 such seller locations were being raided by the regulator in cities like Delhi, Mumbai, Hyderabad, and Bengaluru.
As per sources, the ED investigation was underway related to alleged Foreign Exchange Management Act (FEMA) regulations. The ED raids aim to find evidence related to alleged money laundering activities that may have been facilitated through online e-commerce platforms. The regulator or e-commerce players did not immediately comment. Amazon and Flipkart have previously faced scrutiny in the country regarding their business practices. Swiggy IPO Response: Online Food Delivery Platform Sees Muted Response to Its INR 11,327 Crore Initial Public Offering on First Day of Bidding.
In September, a probe by the Competition Commission of India (CCI) reportedly found that Amazon and Flipkart breached local competition laws by favouring specific sellers on their platforms. Meanwhile, the Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, is also examining numerous complaints related to the use of “dark patterns” and planning a crackdown on online e-commerce companies violating consumer protection laws. The use of “dark patterns” by online platforms has created controversy in India. PhonePe, Bharat Connect Launch Contribution to National Pension System, Enabling Millions of Users To Plan Personal Retirement via App.
These deceptive techniques mislead people into doing something they do not wish to do, such as paying for items or services they did not intend to buy. The Indian government recently released draft guidelines to curb “dark patterns” used by big online platforms. The Digital India Act is also equipped to regulate “dark patterns” on the internet through user safety provisions. Aiming to guard customers from fake online reviews of products, the government has also issued a comprehensive set of guidelines.
(The above story first appeared on LatestLY on Nov 07, 2024 03:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
