The government is investigating some e-commerce companies as there have been complaints from consumers and small retailers about certain practices followed by these companies, Commerce and Industry Minister Piyush Goyal said on Tuesday.
Saying that India's foreign direct investment (FDI) policy for e-commerce sector is robust, Goyal said the government is considering issuing some clarifications to ensure that fair trade practices are followed.
"We have sought several information, they are being looked into. We are also considering certain clarifications to ensure that the e-commerce sector works in the true spirit of the law, of the rules that have been laid down for e-commerce," the Press Trust of India quoted Goyal as saying.
Neither should e-commerce companies become a part of the transactions nor should they promote any product, he said, adding that they should provide all the data to the consumers to make a choice.
Goyal said the companies which are going against the law will have to respond to government's concerns and change their business practices.
The Confederation of All India Traders (CAIT) has repeatedly raised questions on the practices followed by e-commerce companies like Amazon and Walmart-owned Flipkart, and has accused them of violating FDI rules.