MUMBAI – The Indian government has warned the local Amazon.com unit and Walmart’s Flipkart that sellers on their platforms do not follow a policy requiring to specify the country of origin of a product.
A push for strict policy enforcement has come amid tensions between India and China following border disputes that began in June, and is part of India’s efforts to reduce Chinese-made imports.
The two e-commerce firms were given 15 days to explain the lapses or the action to be taken against them, according to a Oct. 16 letter addressed to companies from the Ministry of Consumer Affairs and Reuters found.
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It does not specify what action can be taken, which only refers to a legal act that has provisions for fine.
Representatives for Amazon and Flipkart did not immediately respond to Reuters requests seeking comment outside of regular business hours.
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In addition to enforcing the country’s origin rule, New Delhi has also banned 177 Chinese mobile applications since June while Chinese goods at ports have faced excessive scrutiny and delays.
Amazon is often faced with regulatory challenges in India. Last year, the government implemented strict policies for foreign investment in e-commerce that forced the giant US seller to restructure business structures and stifled ties between New Delhi and Washington.
In January, the Competition Commission of India ordered an investigation into Amazon and Flipkart for alleged competition law violations and certain discounting practices, challenged by Amazon, according to a court filing. .