E-com players targeted: ED raids Amazon, Flipkart sellers across cities
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New Delhi: The Enforcement Directorate (ED) raided several sellers across India associated with major e-commerce platforms, including Amazon and Flipkart, over suspected money laundering activities.
Reports indicate that the ED is conducting a nationwide search targeting subsidiaries and sellers of prominent e-commerce companies. Around 24 seller locations across cities such as Delhi, Mumbai, Hyderabad, and Bengaluru are being raided.
Sources suggest that the investigation is focused on alleged violations of the Foreign Exchange Management Act (FEMA).
The raids aim to gather evidence of money laundering activities that may have been facilitated through online platforms, although neither the ED nor the e-commerce companies provided immediate comments on the matter.
Amazon and Flipkart have previously faced scrutiny in the country regarding their business practices. In September, the Competition Commission of India (CCI) found that the two companies had violated local competition laws by giving preferential treatment to certain sellers on their platforms.
In addition, the Central Consumer Protection Authority (CCPA) is investigating complaints related to the use of "dark patterns" by online platforms. These deceptive techniques trick consumers into taking actions they did not intend, such as making unintended purchases.
The Indian government has recently proposed new guidelines to curb "dark patterns" used by major e-commerce players. The upcoming Digital India Act aims to regulate these practices with provisions to ensure user safety, including rules on fake online product reviews.
(IANS with edits)